Why can overseas warehouses reduce logistics costs?

 The main reasons why Overseas Warehouse can reduce logistics costs are as follows:

Reduce transportation distance: Overseas warehouses are usually located near the target market, so the transportation distance of goods can be greatly reduced. Compared with shipping directly from the production location to the target market, shipping the goods to overseas warehouses and then distributing them to the target market can reduce transit and long-distance transportation costs.
Speed ​​up delivery: Overseas warehouses bring products closer to end consumers, shortening delivery time. This is very important to meet the immediacy needs of consumers, especially in areas such as e-commerce and fast moving consumer goods.

Reduced Duties and Taxes: Storing products in overseas warehouses can avoid or reduce import duties and other related taxes. When products are stored in overseas warehouses, customs clearance and taxes can be cleared according to local regulations and policies, which is often more cost-effective than shipping directly from the production site to the target market.
Batch distribution and centralized management: Overseas warehouses can be used as centralized distribution centers to centrally store and manage products from different suppliers to achieve batch distribution. Through batch distribution, logistics costs can be reduced and overall logistics efficiency improved.
Inventory management and risk control: Setting up warehouses overseas allows for better control of inventory and reduces risks in the supply chain. For example, in the face of changes in market demand, overseas warehouses can adjust inventory more flexibly and quickly meet consumer demand.