How is the logistics situation in Southeast Asia? Is there a prospect for overseas warehouses in Southeast Asia?

Logistics situation in Southeast Asia? Prospects for overseas warehouses?

Logistics is an indispensable part of the cross-border e-commerce industry. Southeast Asia, as a popular emerging market in recent years, has relatively backward logistics conditions, which is a concern for many sellers and platforms. So what is the prospect of overseas warehouses in Southeast Asia? Today, let’s learn about it together.

Overview of Southeast Asia’s logistics infrastructure

Except for Singapore, the logistics infrastructure in most areas of Southeast Asia is relatively backward, with congested roads, scarce railways, and congested ports. These situations have extended the delivery time of cross-border e-commerce and also increased transportation costs. However, most of the products sold in Southeast Asia are low-priced goods for the masses, and the profits they bring are not enough for sellers to cover the relatively high logistics costs, which objectively increases the difficulty of Southeast Asian cross-border sellers’ profitability.

First of all, the logistics tracking technology in Southeast Asia (excluding Singapore) is relatively immature, and the system is at an average level, with room for improvement. Secondly, the inconvenient transportation caused by Southeast Asia’s archipelago terrain and mountainous terrain brings challenges to the “last mile” delivery of cross-border e-commerce.

The booming development of overseas warehouses speeds up and reduces the cost of product distribution

In order to achieve lower logistics costs and faster delivery, overseas warehouses are booming in Southeast Asia. Many forward-thinking logistics companies are vigorously developing overseas warehouses, establishing their own warehouses and distribution chains to expand their logistics networks, strengthen channel management, and improve delivery efficiency.

In addition, Southeast Asian e-commerce platforms such as Shopee and Lazada are also accelerating the layout of overseas warehouses. Shopee has already set up overseas warehouses in multiple countries such as Malaysia, Thailand, the Philippines, and Vietnam, and has also launched exclusive incentive plans based on the situation of warehouse construction, providing strong support for sellers who enter the warehouse. Lazada has established a brand new overseas warehouse network in Southeast Asia, with the Chinese center warehouse as the hub and overseas warehouses in multiple Southeast Asian countries as the site, providing one-stop services for product storage, picking, packaging, delivery, and distribution.

In the context of the global epidemic, overseas warehouses have played a crucial role as a “weapon” in the fight against the epidemic. Cross-border sellers can effectively improve the delivery efficiency of goods by stocking up in overseas warehouses in advance, reduce the time required for goods to be delivered to consumers, and also reduce the overall logistics costs for sellers.

It can be seen that overseas warehouses still have great development prospects and space in Southeast Asia, although there are still many challenges to overcome, opportunities and risks often coexist.

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