Why is the integration of e-commerce warehousing a trend in the future?

In the past five years, e-commerce logistics has achieved mutual success, e-commerce has contributed more than 60 % of the single volume of express delivery companies, and the growth rate of e-commerce GMV has slowed down in 16 and 17 years, mainly due to e-commerce penetration of low-volume single goods, so we have seen that e-commerce single volume still maintains a relatively high growth rate.


From the perspective of e-commerce operation mode, B2C e-commerce logistics operation mode can be divided into: self-building and matching; Seller's warehouse + third party distribution; Third party warehouse allocation.


From the perspective of these three models, it is obvious that for small and medium-sized e-commerce enterprises, the integration cost of warehousing and distribution is better than seller's " optional warehousing + third party distribution" and self-built warehouses. Therefore, third party warehousing and distribution will inevitably become the trend of e-commerce development in the future.


What are the advantages of the warehouse-to-distribution integration model?


Save storage cost and transportation cost; Increase inventory turnover; Improve customer experience.


First of all, through the centralized storage of seller's goods, the economies of scale of storage costs can be realized.


Secondly, the unified delivery cost of the goods after leaving the warehouse is lower than the seller's unified delivery from a single warehouse.


Thirdly, through the logistics network, it can be transported to the central warehouse in a unified way, reducing the cost of procurement and transportation.


Finally, through the sales database, merchants predicted local shipments with algorithms before customers placed orders, and laid goods in corresponding regional warehouses in advance, saving transportation costs by road, greatly shortening the overall delivery time, and finally improving inventory turnover efficiency and customer experience.


Therefore, for B2C merchants and even C2C merchants, the warehouse - distribution integration mode is the main mode of e-commerce logistics in the future.


At that time, the various operating modes of e-commerce have their own advantages and disadvantages, so for the third party warehousing and logistics, they are manifested in three aspects: big data operating capacity, warehousing and distribution.


Big data capability: arrange shipment through data, and reasonably allocate inventory and storage resources. Jingdong and Tmall both have very successful operation experience and data, and there is not much difference between them.


Warehouse end: The warehouse distribution is basically the same, and the core of warehouse distribution lies in sales data. The distribution of goods is arranged through data analysis to save transportation costs and improve transportation efficiency, so there is no big gap between the two warehouse ends.


Distribution end: distribution cost, third party with economies of scale cost lower.