Wuxi in East China's Jiangsu province is working to promote the innovation of foreign trade models for the development of cross-border e-commerce through overseas warehouses, according to officials from the local commerce bureau on April 10.
To date, Wuxi-based enterprises have built 33 overseas warehouses, with public overseas warehouses accounting for about half of them. Among them, five are provincial public overseas warehouses, ranking first in the province in number.
In 2020, Wuxi's cross-border e-commerce trade exceeded $2.5 billion, a year-on-year increase of 16.74 percent. The amount continues to increase sharply this year, with trade increasing by 70 percent year-on-year in January and February, according to local customs.
Overseas warehouses refer to warehouses established in foreign countries to facilitate cross-border e-commerce. Enterprises export products in bulk to the overseas warehouse. After the goods are sold via online platforms, they can directly deliver products from the warehouse to foreign consumers.
Such overseas warehouses are an important link in the chain of cross-border e-commerce.
A leader from Jiangsu Yunfu Group said that their public overseas warehouse in Los Angeles, the United States has provided services to 17 textile and apparel companies based in Wuxi. The total amount of goods exported from the overseas warehouse reached $23 million, which helped companies save 2.8 million yuan ($428,082) in freight costs, as well as reduced overseas logistics and warehousing costs by 2 million yuan.
The local commerce bureau noted that they will continue to take effective measures to support enterprises establishing warehouses in foreign countries, building them into a new highlight of foreign trade development and a new engine of economic growth.