What Are the Benefits of an International Warehouse in China?
Did you know that China’s industrial output rose by over 9% last year? With low labor costs and great infrastructure, it remains the manufacturing hub of the world. So how can you benefit by conducting business in China?
If you are finding warehousing increasingly costly and hard to manage, then this country could have the answers. Read on as we discuss the benefits of an international warehouse in China.
Global E-commerce Is Competitive
If you want to access a global e-commerce audience, you have to be prepared to work for it. Whatever your product is, you will have numerous competitors, many of whom sell the same items. That means you need to take every advantage you can to get a competitive edge.
Having a new warehouse service in China lets you speed up your fulfillment process. You can reach audiences in the far east and Australia much quicker than you would do by posting from the US. You also get the chance to cut down on costs, which you can pass on to the consumer or absorb as profit.
There are numerous different challenges when it comes to warehousing. To deliver the most efficient service, you need to manage inventory, fulfillment, and transportation. Doing them properly requires organization, time, and the hiring of a large team.
By outsourcing to an international warehouse in China, you relinquish these jobs to a third party. You won’t have to manage a workforce or juggle your own team with those handling logistics. Instead, it will all be done for you.
All of this improves the efficiency of you and your team. You can redeploy workers to perform other tasks, and you can concentrate on what really matters: Getting leads and improving conversions.
Cost and Profits
While you save a lot of time, the financial advantages should not be underestimated either. In the US and Europe, warehousing can cost a lot of money. Once you start paying for the space, you also need to hire the staff to operate it for you.
With this model, you don’t have these incurred costs. Instead, you have to pay the third party for their service, which will work out much cheaper.
In China, the cost of labor is lower, meaning these operations can be performed at a reduced price. Added to this is the fact that a lot of the shipping costs are lower, making it competitive to send items across the world.
Access to Major Shipping Solutions
If you find shipping challenges to be a constant and recurring headache, then the right warehouse in China can help. By finding the correct one, you can have your products next door to one of the world’s major ports.
These will often have both land and air routes close by as well, so a whole range of shipping options is accessible quickly. With 24-hour customs clearance as standard at most major ports, your items can be on the way to buyers in an instant. All of this provides a huge advantage when it comes to international trade.
Easy to Scale Up
A time may come when you need to scale up. However, retail is a fickle business and what may be needed one year or season could drop the next. If you invest in space and staff, once in place, you are left with the ongoing costs.
It also takes time to put these things in place. If you want to do it fast and with minimum costs, a warehouse in China is a viable solution. The warehouse management will inform you of any leftover products lying in your inventory, so you are not paying for space housed with products that are not converting.
If you ever need to scale back the business, this works in the same way. You can reduce the space and stock you need without cost.
The last few years have seen what has come to be known as the great resignation. For businesses, this has made it hard to attract and retain employees in a wide range of industries. This process can be long, involving advertising, interviewing, and then the time of settling a new employee into the job.
China has human resources in abundance. There is a large population who are always looking for work, especially in the warehousing sector. Manpower is easy to hire and lets you scale up much more efficiently, without the long processes.
For specialist jobs, these people will already be on hand. You won’t have to train people or even put them through courses and certifications. Instead, the company will have what is needed at its disposal.
Networking and Experience
Once you have a warehousing company, you may need other contacts. It could be a manufacturer, or you may want access to other foreign trade zones. When you don’t speak the language and understand the culture, this can be extremely hard, and making the step is a huge financial risk.
The operators of warehouses will have numerous contacts. You will be able to ask their advice on who to use and, crucially, trust. As well as this, you can tap into their expertise and knowledge on everything from handling to shipping.
Finding an International Warehouse
Now you know the benefits of an international warehouse in China, you just need to find one. There are several companies online and middlemen who will help you navigate the cultural and language gaps.
If you need precision engineering, manufacturing, or warehousing in China, then Shield Works should be your first stop. We can provide a range of solutions, lowering your costs and improving efficiency. Contact us to discuss your needs and let our expert staff begin increasing your company’s efficiency.