Wuxi to build 50 overseas warehouses by 2024

With the strong development of cross-border e-commerce, enterprises in Wuxi have accelerated the improvement of logistics systems such as overseas warehouses, according to local media.

Statistics from the local commerce bureau show that Wuxi-based enterprises have built 18 public overseas warehouses. Among them, eight are at the provincial level, ranking first in Jiangsu province in number.

In 2021, the value of exports from these public overseas warehouses reached $295 million.

Overseas warehouses are warehouses established in foreign countries to facilitate cross-border e-commerce. Enterprises export products in bulk to the warehouse, and after the goods are sold via online platforms, products can be delivered directly from the warehouse to foreign consumers.

Such overseas warehouses are an important link in the cross-border e-commerce chain and can help enterprises save on logistics costs, improve operational efficiency, and provide overseas consumers with better shopping services.

A higher-up at Jiangsu Yunfu Group said that their public overseas warehouse in Los Angeles provided services to over 40 textile and apparel companies based in Wuxi in 2021. The total of $800 million in goods was exported from the overseas warehouse, which saved 57 million yuan ($902,199) in freight costs for companies and reduced overseas logistics and warehousing costs by 55 million yuan.

Wuxi is speeding up the construction of overseas warehouses and has implemented related polices and given out financial bonuses with the goal of building five more overseas warehouses in 2022 and having 50 by 2024, according to officials from the local commerce bureau.