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If your business manufactures or sells a product made in China or the Far East, there are many decisions you must make when it comes to the shipping and warehousing of those products. While some find it beneficial to use domestic United States fulfillment centers for their warehousing needs, many businesses rely on e-commerce warehousing and fulfillment centers already in China.
But how do you decide where to go? Simply going with the cheapest option isn’t always the best idea, because the lowest cost doesn’t guarantee the best service and the best fulfillment companies. With so many other factors to consider, it can be overwhelming trying to figure out where is the best location for your fulfillment needs. If you’re considering moving your warehousing operations to China, here are some pros and cons you should consider before making your move.
There’s no denying that hosting your fulfillment center needs in China or Hong Kong can be much more affordable than doing so domestically. This is great news for your business, because you’ll get to keep more profit. But as we mentioned before, lower cost doesn’t always mean a better deal. In fact, it may mean a reduction in service or other hiccups that are out of your control. Given the distance it also may not be feasible to drop in and check on things if they go awry. Using a domestic-based warehouse in your community, on the other hand, allows you to better monitor your inventory and ensure quality control.
If your merchandise is manufactured in China or the Far East, it may make sense to warehouse it there too. The product will have less distance to travel less to get to the warehouse and it can be shipped directly from the warehouse in China to the customer elsewhere on the globe. The downside to this, however, is that you may never see the merchandise and the packaging yourself before it ships out, so you give up a degree of quality control using this method.
If your merchandise is manufactured in China, shipping an item directly to your customer from China can be more affordable than bulk shipping the item from China to another country and then shipping each order individually to customers. In fact, most merchandise in China can be processed within 2-3 days, ensuring it ships quickly and efficiently, directly to your customer. Better still, many items coming from China will not need to go through a lengthy customs process once they get to the United States, cutting your customers’ wait time.
Unfortunately, it can still take a bit longer to send merchandise from China to elsewhere in the world, so despite the fast processing and customs times, it may still take longer than some customers are willing to patiently wait.
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