Overseas Warehouses Save Yongkang’s Foreign Trade

Post Time: 2020-04-02
   “The layout of China Post’s overseas warehouses is almost the same as that of Amazon, so we are shifting our export platform to China Post.” A few days ago, Zhou Pan, general manager of Yongkang Weisen Trade Co., Ltd., received an e-mail from Amazon Corporation in the United States, informing him that from the date of the letter to April 5th, Amazon’s warehouses in the US, the United Kingdom, and other countries will no longer accept non-essential products to free up storage space for pandemic-related products, such as medicines and foods. This is one of the measures instituted to cope with coronavirus. Weisen, a company whose main business is foreign trade, was hit hard by this sudden change.

By switching to China Post, on March 30, Zhou Pan was still busy sending products. With the help of Yongkang Post, the company’s 200,000 USD worth of products will be sent overseas in a few days, and thereafter 6,000 products will continue to be delivered internationally each month.

In recent years, Yongkang has vigorously promoted the development of e-commerce, and the cross-border e-commerce industry has become a new economic growth point in Yongkang. As of now, there are more than 3,200 cross-border e-commerce providers in the city, of which more than 1,500 have settled at Ali International Station, more than 600 have joined the AliExpress, and more than 500 participate in Amazon e-commerce. In 2019, Yongkang’s total cross-border online retail exports reached 6.56 billion RMB, ranking second in Zhejiang. Many directors of cross-border e-commerce businesses commented that Amazon’s emergency shutdown of warehouses has put them under great pressure.

Facing the changing situation of foreign trade, Yongkang explored the advantages of domestic logistics, and the commercial departments actively launched a new round of cross-border cooperation between foreign trade companies and postal agencies. In 2019, Yongkang Post, in the form of overseas warehouses, helped 35 companies in Yongkang export motorcycle accessories, garden irrigation pipes, solar panels, fitness equipment, and other goods, incurring business expenses of 1.05 million RMB. The director of the Commerce Bureau of Yongkang said that China Post’s mature operation model and the experience of overseas operations have laid a solid foundation for the cooperation between China Post and e-commerce businessmen.

Yongkang Post has set up overseas warehouses in 11 countries and regions, including the US, the UK, the Czech Republic, Japan, Australia, and Russia, with a combined area of nearly 80,000 m2. Products stored in these warehouses will be sent to countries and regions across Oceania, the European Union and a number of countries and regions of North America and Southeast Asia. In addition, three large warehouses with a total area of 100,000 m2 in the Eastern, Western, and Southern US will soon be put into trial operation, storing products that will be sent to cities across the country.

Chen Jinhua, executive deputy general manager of Yongkang Post, remarked that Yongkang Post will also establish warehouses in France, Italy, and Spain this year, forming a cross-border logistics network that covers the world’s major economies. It will provide new solutions for cross-border e-commerce enterprises to upgrade their traditional trade models to models of overseas warehouses. All these efforts will promote the stable development of foreign trade companies in the midst of the pandemic situation. (By Tan Xiaojun – Jinhua Daily, translated by Wei Han, edited by Kendra Fiddler)

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