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Best Guide to Know China Warehouse
We know that importing helps a business grow and expand. Knowing China warehousing functions can do more than you think for your business. Are you aware of the services a warehouse in China offers?
One of the most common questions you encounter is the price of renting service in a warehouse. Or is it safe and practical to use a warehouse when you import from China? We will cover all these and more.
We will be giving you all the essential things you need to know about China warehouses. As you finish reading this guide, you will learn why you need to rent a warehouse in China and the benefits you can get from it.
1. China warehouse Basics
1）What is the China Warehouse?
A China warehouse is a facility or a place where you can store products for a specific time. If you have a business and you are importing goods and products from China, you need some space or a place to put in all your purchases until you are ready to ship them all together to your desired location.
Many warehouses in China support businesses like freight, logistic, and import and export companies. Some are accessible; some are not. Some warehouses can only store products or goods, while others may provide storage and logistic service.
A China warehouse offers different kinds of services. These services are helpful for foreign clients who need assistance and storage for their bulk purchases in China. Some standard warehouses clients look for are China Amazon warehouse, FedEx China warehouse, and the famous clothing wholesale brand Shein warehouse China.
2）Why is the China warehouse so important in 2022?
When your business is doing good, and you think of expansion, one of the challenges you encounter is international warehousing. International warehouses serve as your centers in the modern global supply chain. They guarantee prompt, inexpensive, and resolve shipping problems to your buyers.
If you want to want to improve your brand identification, you may want to think of giving your overseas customers a good experience. Using the services of a China warehouse is necessary.
There are significant advantages and benefits if you use them in 2022. Below are some of the reasons:
a. You can store your goods in a specific location short-term or long-term.
Choosing a specific location where you can store all your goods is possible because there are plenty of warehouses in different cities in China. So, if you want to keep all the goods in your chosen city, you can rent a space for storage until you are ready to ship them. This way, you can manage inventory easily.
For the duration, you can use short-term or long-term. This will be useful if there are important documents or other processes you need to finish before shipping your goods. China warehouses are necessary because they can allow storing your goods for as long as you want.
b. The Warehouse will take care of offloading your goods.
You do not have to worry about handling the products delivered by your suppliers when they reach the warehouse. The warehouse staff will record and take care of your inventory and stock them with care. They can do inspections as well. You can refer to their services and pay for a package deal based on your need.
The experienced and professional staff can handle multiple services like product loading or unloading, inventory management, packing, fulfillment, and more. You can rest assured that your goods are all in good hands.
c.It offers effective management of your supply chain through WMS.
WMS or Warehouse Management System ensures that supplies and items will reach warehouses in the most effectively and economically. A WMS manages different tasks to run the operation like:
- inventory tracking
China warehouses use the system to monitor all these inside the warehouse. Additionally, a WMS offers visibility into a company’s inventory at any time and place.
2. Types of China Warehouses
Now we will enumerate and explain the kinds of warehouses in China. This way, you will know what type is suitable for your business.
1) Private Warehouse
An individual or company owns a private warehouse in China. They could be factory owners, wholesalers, or retailers. They are intended for personal use only, not for public use.
It is operated by a single company. The advantage of having a private warehouse is better control of the administration and storage of the items. They also do distribution and serve as fulfillment centers.
For small business owners or start-ups, private warehousing is pricey. But it offers many advantages. You can benefit from enhanced monitoring. You can manage all operations at any time with flexibility.
2) Public Warehouse
Government agencies typically own public warehouses. It is the opposite of private ones because they are available to everyone who wants to rent a storage space for less.
However, public warehouses only offer storage services. Many small business owners use it for product storage. Not every business owner can have a private warehouse. As a result, the government makes public warehouses to meet storage needs at a low cost.
In addition, a public warehouse may be built and owned by private entities. Government licenses are issued for them to use. These kinds of storage facilities provide inexpensive storage for many clients.
3) Bonded Warehouse China
Bonded warehouses in China are storage facilities that keep imported products while they pass through customs.
They are distinct from others because they follow specific rules. The goods kept in bonded warehouses in China are subject to taxes. Some popular bonded warehouses are EPC Warehouse China, KLG, MOL Logistics, and Shanghai Jinhan International Logistics.
4) Fulfillment Warehouse
If you are in the e-commerce business and need a warehouse to ship your goods to your customers worldwide, you send them over here. It’s also referred to as a fulfillment center or 3PL.
One example is the China Amazon Warehouse. Most Amazon FBA sellers lease a warehouse like Easy China warehouse and other China warehouse online for their Ecommerce business.
A fulfillment company may have connections with a wide range of shipping companies. A fulfillment center needs shipping carriers to pick up goods ASAP because it processes direct-to-consumer orders as soon as they are placed. This guarantees that orders will be delivered to customers as promised and on schedule.
5) Distribution Warehouse
A distribution warehouse handles products close to the supply chain’s endpoint. It is where products are stored after they are produced and prepared to be shipped to retailers. Distribution warehouses are connected to distributors. It makes wholesale distribution easier for retailers.
The China Glass Warehouse Lofts is an example of a distribution warehouse in Orlando, Florida. They lease or rent the building as a China glass storage and distribution center. The China Glass Warehouse Lofts is an industrial warehouse for residential and work purposes.
3. How can China Warehouse help my business?
There are several ways in which a China warehouse can help you in your growing or existing business. For example, if you are in E-commerce and selling clothes from some brands like Shein, you can lease and use the services of Shein warehouse China. At the same time, if you sell on Amazon, you can send all your goods to a China Amazon warehouse for faster and more efficient restocking of goods.
Here are some benefits your business can take advantage of:
1）It will minimize and reduce business risks.
Business owners can lower their risks when they use Chinese warehouse services. Why? The warehouse assumes complete responsibility for the security of your goods. They do not store your products but do it with utmost care.
They can do inventories, consolidation, and quality control. Warehouse operators carry insurance that covers accident-related damages.
2）Get expert service and financing options.
People working in the warehouse have warehousing tasks and systems expertise. They can handle all these duties with care and knowledge. As a result, it aids those who use their services in lowering their company risks.
Warehouses also offer to finance. Warehouse receipt financing gives the buyer loans for pledging warehouse receipts for the supplier’s products kept at a bank-designated warehouse. The bank is in charge of the draw rights for the items.
How does it work? When a buyer stores his items, the warehouse issues a deposit slip that provides what is known as a company owner warrant. They can use the receipt as collateral when taking out a loan.
3）They offer services suitable for your daily business needs.
Proper storage of products is critical for every business. You can get a safe product storage service with inventory management when you use a China warehouse. If you think of buying from multiple suppliers and having them shipped all at once, you can get consolidation services.
Some other services they can offer are packing or product labeling. Once they receive your products in the warehouse, they can do these tasks for you. If you need shipping services, an Amazon warehouse China can ship your products to your customers.
Another essential service is freight forwarding. You can choose to do your product shipping through a warehouse service. They have connections or partnerships with logistic companies that can transport your products on time.
4. How to Find the China Warehouse for your business?
Many still use Google to look for warehouses and research the services they offer. However, some web results are not accurate. One best way to find the right warehouse is through referrals. However, if you don’t know anyone who can suggest or recommend the best one, below are your best options:
1）Check the warehouses available on the Alibaba platform.
You can search for warehouses in Alibaba. There are different categories you can see and choose from. Some types are China steel structure warehouse, and ready-made or prefabricated houses. You can contact the suppliers quickly and discuss your needs so they can give you a quote. You can also choose based on your preferred location.
2）Check or visit China.
Some business owners will go to China and check the physical warehouses. Some of the top and popular warehouses can be found in:
- Guangzhou Warehouse
- Shenzhen Warehouse
- Shanghai Warehouse
- Yiwu Warehouse
- Ningbo Warehouse
- Xiamen Warehouse
3）Get help from a China agent.
If you want an efficient service of finding the right China warehouse service, you can hire a sourcing agent to look for one. The advantage of hiring them is to look for the best and ideal warehouse that can cater to your business.
For example, suppose you are looking for a FedEx China warehouse or an EPC warehouse China from the main cities. In that case, a sourcing agency like JustChinait can look for the suitable one based on your requirements and desired location. Their services are reliable and trustworthy because they have access to a list of the top warehouses.
5. Costs of the China Warehouse
When it comes to cost, the amount varies based on different factors. Services that incur costs are:
- Storage fees.
- Inventory management.
- Operations cost (for packing, labeling, WMS, taxes, etc.).
- Handling charge for loading/unloading.
- Other miscellaneous expenses.
Warehouse space in China cost an average of 44.3 yuan per square meter per month in 2019. In China, there has been a steady rise in the demand for warehouses, raising the cost of renting them.
In China, a warehouse typically rents for $0.85 per square foot (average warehouse cost). Additionally, the same space’s operational costs come to $0.25. An importer must spend, on average, $1.10 per square foot to rent a Chinese warehouse.
Depending on the quantity of the consignment, you may negotiate the price. For larger orders, the Chinese warehouses also reduce the total rent. The prices also decrease when you rent these Chinese warehouses for more extended periods.
6. How to reduce the cost of warehousing?
1）Optimize your warehouse storage.
Check the physical structure, storage, warehouse management and product retrieval process on your preferred warehouse. If you improve your warehouse, it will increase production, lessen stock loss, and improve traffic flow.
Successfully optimized warehouses are essential for an agile supply chain. These warehouses must be able to save time, space, and resources. It must lessen errors.
2）Avoid red flags about the warehouse.
If you have researched your chosen warehouse, you would know if there were issues like China warehouse explosion, theft, and other red flag concerns. It includes theft issues on staff, unusual or wrong invoices, and stocks that don’t correspond to your sales. It is better to stay away from these warehouses.
3）Avail of cross-docking services.
Cross docking is a clever technique to save storage expenses, especially in a pandemic. This involves the direct flow of goods from the supplier to the customer, cutting out the intermediary and lowering costs at all relevant points.
Cross-docking is a warehouse service in China that enables prompt fulfillment of backorders. They provide distribution services. From the receiving pier, they take the goods there. It not only saves time and money on product management and storage but also on labor and delivery.
7. Tips to Choose China Warehouses for Growing
1）Choose the best location.
The best option when choosing a warehouse is near the shipping port. You must also select a central location if buying from different cities or areas. It is more cost-effective because you can save money on transporting your products there.
Your China warehouse address should be near your suppliers. This can simplify and mitigate risks when shipping your products to your storage place.
2）Choose the right type of warehouse.
Some warehouses can fit your business requirements depending on your product niche. For example, if you sell on Amazon, you can rent an Amazon China warehouse that can manage your inventories while shipping them to your customers quicker. You can find a lot of Amazon warehouse in China.
Do you need a Shein China warehouse? Find a China warehouse clothing that is exclusively for this brand than looking for a non-Shein warehouse in China. As this brand is very popular in many countries, you can rent a warehouse that has a Shein China warehouse address and can fulfill your orders globally.
There are special warehouses that are dedicated to certain brands like:
- China Walmart warehouse
- Best Buy China warehouse
- Chemist Warehouse China, and more.
Just like Shein Warehouse China, you can find a bonded warehouse China for your other product niche like shoes, home decors, automobile products, etc.
3) Choose one with a superb security system, sufficient staff, and warehouse equipment.
It is always best to secure your goods in storage where there is an excellent security system in place. Look for a China wholesale warehouse where you will not worry about your stored goods being stolen or damaged because there’s not enough equipment or staff to man and do specific tasks.
1) What Is Warehouse Management Service for exporting?
It is a system to use when you want to manage the warehouse operation when doing export. It can do the following:
- get stock-level alerts
- automate client/supplier returns of items
- manage inventory across various locations
- trace inventory through time
2) How much is warehouse rent in China?
A warehouse normally costs $0.85 per square foot to rent in China (average warehouse cost). The operating expenses for the same space total $0.25 in addition. On average, renting a Chinese warehouse costs an importer $1.10 per square foot.
3) Where is the China Guangzhou warehouse located?
You can find the China Guangzhou warehouse in a well-established industrial location in Guangzhou Economic & Technological Development District East Zone.
It is a developed industrial district close to the city center. It is located along the Guangzhou-Dongguan-Shenzhen economic corridor.
4) What is a bonded warehouse in China?
An establishment or secure space in a special customs supervision area in China is known as a “bonded warehouse China.” It is where dutiable commodities are kept before payment of duties. Usually, this guarantees that goods arrive more swiftly.
Products are bulk imported into authorized cross-border eCommerce warehouse zones in China under the bonded warehouse concept. Once Chinese customers place an order on an authorized cross-border eCommerce website or platform, the goods pass through customs.
5) Does Alibaba have a warehouse?
Yes. In 2017, the Tmall division of Alibaba launched its first smart warehouse in the Huiyang area of China, equipped with a fleet of small but powerful automated guided vehicles (AGVs) for moving merchandise and processing orders.
A warehouse with over 700 robots at work has been opened by Cainiao. It is a Chinese logistics company that is majority owned by Alibaba. These robots can automatically pick up packages and move them to another area of the warehouse, where a delivery service will subsequently pick them up.
6) What kind of buyers would benefit most from a China warehouse?
Both small and big business owners can benefit from a China warehouse. If you are in E-commerce, importing, or buying bulk from China, you need a warehouse to store your goods before they are delivered to your desired location.
The China warehouse service offers can help your business in many ways. You will save time and effort by acquiring these services. Such services include packing, labeling, inspection, delivery, etc.
If you are ordering from multiple suppliers, storing, and consolidating all your goods in a warehouse can make them safe and secure.
9. Let China Warehouse Empower Your Business to A New Level
A China warehouse can help in many ways.
The wide array of services they offer can bring your expansion or even your starting business a boost. China warehousing has improved over the years. It aids to give solutions to your sourcing and China shipping warehouse requirements.
Warehouses can bring an edge to your company. It will help to control your supply chain and manage them effectively with add-ons to their professional services. Avail of services like inventory, loading/unloading, packing, shipping, and more.
Foreign buyers in the US prefer China warehouse in USA like a China Walmart warehouse or the China Glass Warehouse Orlando.
Do you want to get an idea of how warehousing service is done in China? Please check out this video from China EPC warehouse. You can find this China EPC warehouse in Shanghai.
You can see some China warehouse sale or lease options from Alibaba. And you can inquire on warehouse lessors directly from the platform if you need a China post warehouse or a product niche storage like China shoe warehouse.
You can find a China warehouse in USA, China wholesale US warehouse, or EPC warehouse China- with exemplary services when you rent or lease from Chinese warehouse owners. Let JustChinait find the best solution warehouse services for your business. We can help you find a suitable warehouse for you.
A warehouse serves as your goods’ shelter while it is being prepared for transport to your business location. Thus, it needs to be secure, reliable, and equipped with an excellent management system. Your choice of warehouse matters because cost and efficiency are 2 major factors you always consider.
Speed is guaranteed with top warehouse services. Some warehouses like EPC Warehouse China can expedite their shipping. They partner with FedEx China warehouse for quick processing of your orders. Find an EPC warehouse China to USA for an affordable cost with the most efficient service.
If you need an agent to help you find a China warehouse direct to suppliers, JustChinait can provide you with qualified and certified warehouses. We have access to all warehouses in China and rest assured we can point you from the right suppliers to the nearest warehouses.
China is home to all kinds of products and the importing and exporting industry soars high yearly. From small to large products like mining machineries and finding the right China mining warehouse, you can get affordable and professional service for your warehousing needs.
Is there anything you would like to know more about China warehouses? Send us a message and we will answer it quickly!