Why Are Final-Mile Costs in Overseas Warehouses So Low?

The relatively low cost of last-mile delivery in overseas warehouses is mainly attributed to the improvement of the global logistics network and the rapid development of the cross-border e-commerce industry. In recent years, with the progress of Internet technology and the change in consumer shopping habits, more and more enterprises have chosen to sell their products globally through cross-border e-commerce platforms. To reduce transportation costs and improve delivery efficiency, many companies have started using overseas warehouses as an intermediary link, making last-mile delivery costs an important part of the overall logistics cost.

From the perspective of logistics operations, last-mile delivery usually refers to the final transport service provided by local delivery service providers after goods arrive at the destination country. Compared with direct shipping from the origin to the consumer, using overseas warehouses can effectively shorten the transportation distance and alleviate the pressure of international trunk transportation. For example, on the Amazon platform, if sellers choose the FBA Fulfillment by Amazon service, Amazon will use its global warehouse facilities to complete order processing, packaging, and delivery. This model not only improves delivery speed but also significantly reduces the cost of last-mile delivery.

Economies of scale are also a key factor contributing to the low cost of last-mile delivery. When a large amount of goods is concentrated in a certain area, logistics companies can cooperate with multiple courier companies to obtain more favorable price terms. At the same time, due to the large volume of orders, enterprises can adopt automated sorting systems to improve operational efficiency and further compress operating expenses. Taking Cainiao Network as an example, it has established an intelligent logistics backbone network in multiple countries, relying on the strong resource integration capabilities of Alibaba Group, achieving full-process digital management of cross-border packages from start to finish, thereby significantly reducing the cost of the end delivery phase.

It should be noted that the market environment of different regions also directly affects last-mile delivery costs. Generally speaking, developed countries such as the United States and Germany have relatively mature courier systems, where intense competition makes prices more transparent and reasonable; while in some emerging economies or remote areas, due to lagging infrastructure construction and greater delivery challenges, corresponding charge levels will be higher. Enterprises need to comprehensively consider the characteristics of target markets when planning supply chain layouts and reasonably select delivery methods.

In conclusion, the relatively low cost of overseas warehouse last-mile delivery is inseparable from the logistics resource integration under the globalization background and the efficiency enhancement brought by technological innovation. In the future, with the popularization of new technologies such as 5G and the Internet of Things, it is expected that costs in this field will further decrease, providing more convenient conditions for small and medium-sized enterprises to participate in international trade.