Core Viewpoint - The report highlights the rise of cross-border warehousing service providers, particularly those focusing on large items, as essential players in facilitating the export of bulky goods from China to overseas markets, akin to "water sellers" during a gold rush [1]. Group 1: Challenges and Solutions in Cross-Border E-Commerce Logistics - Direct mail has limitations for large items, making overseas warehouses a "savior" for bulky goods [2]. - The cost of shipping a chair via Amazon FBA is $45.37, while using a third-party overseas warehouse costs only $21.04, a reduction of 53.6% [3]. - Delivery times are significantly improved, with direct mail taking 10-15 days to the U.S., while local shipping from overseas warehouses can be as quick as 1-3 days [4]. - Overseas warehouses facilitate local returns and re-labeling, avoiding high costs associated with cross-border returns [5]. Group 2: Economies of Scale in Overseas Warehousing - The core competitive advantage of overseas warehouses lies in economies of scale, with larger warehouses significantly reducing costs [6]. - Renting a 1,000 square meter small warehouse costs about $3 million annually, while a 100,000 square meter large warehouse can reduce the cost per square meter to $1,400, a drop of over 50% [6]. - Shipping costs decrease with higher package volumes, with discounts available for shipping 100,000 to 5 million packages [6]. - Concentrating shipments can lower logistics costs by over 34% compared to air freight [7]. Group 3: Technological Advancements in Warehousing - Leading companies are accelerating digital transformation to manage high labor costs and complex logistics [8]. - Automation through AMR robots has improved storage utilization by 15% and order accuracy to 99.5% [8]. - Companies are developing integrated systems for order management, warehouse management, and transportation management to enhance visibility and efficiency [8]. Group 4: Competitive Landscape and Opportunities for Small Sellers - Increased competition in the industry is driven by capital influx and strategic adjustments from major players [9]. - Amazon has introduced a comprehensive supply chain solution, enhancing its service offerings and increasing its next-day delivery rate from 62% to 76% [9]. - Temu has opened up self-fulfillment options for sellers, facilitating the entry of large items onto its platform [10]. - The influx of capital has led to aggressive pricing strategies, with some service providers offering rent-free periods of 1-3 months [10]. Group 5: Future Outlook and Industry Dynamics - The cross-border warehousing industry is entering a consolidation phase, with lower logistics prices benefiting small sellers in the short term [11]. - Long-term success will favor companies with extensive warehouse networks, intelligent management systems, and comprehensive service capabilities [11]. - The maturity of overseas warehouses is reshaping the logistics landscape for Chinese manufacturers, enabling efficient delivery of large items to global consumers [12].