Steven Wang: More and more companies are expanding into overseas warehouses. With significant increases in warehouse space in key markets like Europe and North America, overseas warehouses have become a crucial part of cross-border e-commerce. However, the traditional model of relying solely on in-warehouse operations, rent collection, and order processing fees is often not profitable. This has driven many overseas warehouse operators to seek more sustainable profit models.

The core competitiveness of overseas warehouses lies in extreme operational efficiency and low error rates, which means that most of these companies actually rely on last-mile delivery for profit. To put it more directly, the competitive edge for overseas warehouse companies comes down to who can secure the lowest discounted rates for last-mile delivery courier accounts.

Currently, light and small parcel delivery faces twofold challenges: on one hand, it has to compete with the official delivery services provided by e-commerce platforms and their low-cost courier discount accounts; on the other hand, it faces pressure from local regional delivery services operated by companies with Chinese backgrounds. As a result, more and more companies are turning to medium and large parcel delivery in search of new growth opportunities.

Orders for light and small parcel delivery are mostly concentrated on e-commerce platforms, meaning third-party delivery companies in this market must depend on platform orders for survival. The situation in the medium and large parcel delivery market, however, is different: the logistics systems of e-commerce platforms are not yet fully developed in this area, and the operating costs are relatively high. Apart from a few international courier companies like FedEx, there is still a scarcity of logistics services catering to medium and large parcels, which presents a huge opportunity for other logistics companies.

Medium and large parcel delivery not only helps companies open up new profit areas, but also allows them to avoid the fierce competition in the light and small parcel market. Especially in European and North American markets, as the demand for overseas warehousing and logistics services continues to grow, the companies that can achieve lower costs and higher efficiency in medium and large parcel delivery will be the ones to gain a competitive edge in the future of cross-border e-commerce logistics.

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WeChat Public Account: Cross-border E-commerce Logistics Baixiaosheng