A case has been filed for investigation! Another cross-border company was shut down

Cross-border e-commerce is booming , but there are many challenges behind the prosperity !

In recent years, both national policy support and capital enthusiasm have helped to push the promising cross-border e-commerce onto the fast track of development. However, looking at the overall development of cross-border e-commerce , we can find that there are indeed many sellers with outstanding performance, but there are also many who lose money. The unpredictable overseas market environment has brought challenges to everyone , and the entire business chain also hides various risks.

The seller accidentally fell into the trap.

Personnel lost contact ! Another cross-border company went bankrupt

Recently, another scandal occurred in the cross-border circle. The cross-border company involved, Baiyao Cross-border E-commerce, has been shut down, and the main suspects have been subject to criminal compulsory measures. There may be hundreds of victims .

Baiyao Cross-border E-commerce Company is located in Zhengzhou, Henan Province. It is understood that one of the victims was very tempted after seeing the promotion of "Baiyao Cross-border E-commerce", so he added the customer service staff on WeChat for detailed chat, and learned that investing 100,000 yuan to let the other party operate an overseas warehouse on his behalf could make huge profits, so he fell into the trap, and then invested more than 1 million yuan under the persuasion of the company's staff. In March this year, Baiyao Cross-border E-commerce staff lost contact, and he finally realized that he had been deceived.

The police said that Baiyao Cross-border E-commerce is currently under investigation for suspected fraud .

The above problems are just the tip of the iceberg of cross-border chaos . Otherwise, you will find that a thundering incident will break out in the cross-border circle almost every once in a while.

As an indispensable link in the cross-border transaction chain, cross-border logistics is of great importance. However, the entry threshold of this industry is relatively low. There have always been problems such as a mixed bag of practitioners and a lack of industry norms. Negative news has been constantly exposed. This year alone, there have been many cases of bad freight forwarders running away, and overseas warehouses have become the hardest hit area. In addition to the overseas warehouse investment scams mentioned above, there are also various routines that are hard to guard against. Let's take a look at the more common problems:

First of all, many overseas warehouses are unable to ship out 100% of orders every Monday. At this time, they will deceive sellers and claim that FedEx or UPS is on strike and cannot transport goods . Due to the information gap between China and the United States, sellers are often unable to verify with third parties in a timely manner. When they call or email to inquire about the real information of local FedEx and UPS, they usually give up because it is difficult to get through the phone or the email reply is very slow.

Secondly, it is not uncommon for overseas warehouse logistics companies to engage in sideline business . Overseas warehouses have certain local clearance resources or sales channels. Many bad freight forwarders will wholesale and retail the sellers' goods to local merchants , falsely claiming that the goods have been shipped but the courier lost the package and did not scan it. In fact, the error rate of courier is only 0.1%. If the loss rate and error rate of freight forwarders are too high, there is a high probability that there is something fishy . It is understood that after many sellers cooperated with freight forwarders, the goods in overseas warehouses were lost. They tried to contact the other party to discuss solutions many times but to no avail, and were forced into a long "tug-of-war".

Regarding the phenomenon of lost goods in overseas warehouses, cross-border sellers need to be vigilant. In 2023, due to the reduction in cargo volume in California, the United States, a large number of overseas warehouse accounts or management problems were exposed rapidly . Now there are bankruptcies and running away. If nothing unexpected happens, there will be more bad news. This will only make the phenomenon of sellers losing goods more frequent, because many overseas warehouse companies will privately sell sellers' goods to companies that collect inventory in the market in order to recover their losses. Since these overseas warehouse companies do not cooperate directly with the owners of goods, they will not even ask whose goods they are collecting. Many sellers do not cooperate with direct overseas warehouses, but with third-party freight forwarders or operating companies, etc., so their goods have been sold and there is no way to get them back.

In addition, many overseas warehouses on the market use third-party express accounts. The prices of third-party express accounts may have certain advantages, but the accounts are given to multiple sellers for use. Once they are discovered by UPS or FedEx, there will be a risk of account closure and goods loss, which may cause sellers to be unable to ship goods normally and affect sales.

Finally, many overseas warehouses are just "small workshops" with irregular operations . There are problems such as dirty loading and unloading platforms, disorderly storage of pallets, irregular palletizing after unloading, etc., inaccurate sorting of goods in cabinets with multiple SKUs, and errors in picking goods out of the warehouse. If scanners and warehouse managers cannot find out in time, the goods will be shipped out incorrectly. Unprofessionalism brings many troubles to sellers.

Overseas warehouses have a significant position. How can cross-border sellers make good use of this "weapon"?

While overseas warehouses are plagued by numerous problems, they are also “urgently needed ” by a large number of cross-border sellers .

On the one hand, cross-border e-commerce has gradually moved from high-speed growth to high-quality growth, and consumers' requirements for logistics speed and efficiency have increased accordingly. Cross-border sellers can use overseas warehouses to deliver goods nearby , allowing consumers to enjoy the ultimate customer experience of fast delivery, and can respond to the market more flexibly and improve operational efficiency.

In addition, cross-border sellers' goods will inevitably encounter some troubles overseas. Take Amazon sellers as an example. When FBA goods cannot be sold due to various unexpected problems and need to be moved, overseas warehouses can help sellers solve the problems.

On the other hand, the country is also vigorously supporting the development of overseas warehouses . In recent years, the State Council has introduced a series of policy measures to support the development of overseas warehouses for cross-border e-commerce .

In summary, overseas warehouses are important overseas nodes for cross-border e-commerce, and are also one of the core links of the cross-border e-commerce industry. How can cross-border sellers make good use of this "weapon" for going overseas? One very important point is to enhance their ability to distinguish the quality of overseas warehouses in the process of choosing overseas warehouses for cooperation . Sellers can evaluate whether a warehousing company has competitive services based on the following factors :

1. Consider the range of services provided by the warehousing company. Companies that provide a full range of services , including storage, handling, distribution and value-added services (such as matching or assembly , after-sales , repair , return and exchange) may be more competitive than companies that only provide basic storage.

2. Evaluate the company’s flexibility in meeting specific requirements. For example, are they able to customize services to meet unique needs? Can they handle fluctuations in demand and adjust services accordingly?

3. Evaluate whether the technology the company uses to manage its warehouse operations is a self-developed WMS system. Does it use advanced technologies such as automated warehouse management systems and RFID tracking? Companies that use cutting-edge technology are likely to be more efficient and cost-effective.

4. Evaluate the warehousing company’s pricing structure. Are their rates competitive compared to other providers in the market? Do they offer transparent pricing with no hidden fees?

5. Consider the storage company’s experience and reputation. Do they have a proven track record of success? Do they receive positive reviews and recommendations from past clients?

6. Evaluate the location of the warehousing company. Are their warehouses strategically located near your consumers or suppliers? Companies with strategic locations may be able to provide faster and more efficient delivery services.

By evaluating from the above multiple angles , sellers can avoid detours when choosing overseas warehouses .

Yi Enjun learned that SLM-Warehousing (hereinafter referred to as SLMW) is the overseas warehouse business of SLM, which has been focusing on large-scale drop shipping for more than 7 years. It has signed contracts directly with FedEx and UPS , and is committed to delivering the most affordable and high-quality goods in Asia to American consumers with the best logistics products . SLM has the comprehensive indicators for the assessment of listed companies. Its current customers include the top furniture sellers in East China, the top listed companies in South China, and the top listed companies in Central China.

To ensure the efficiency of logistics and transportation , SLMW has established warehouses with more than 1,000,000 square feet in five cities in the United States, focusing on setting up warehousing and distribution centers in multiple cities to implement the principle of nearby delivery to ensure that end consumers receive packages as soon as possible; orders placed before 8 a.m. every day, U.S. time, will be shipped out on the same day; SFP orders will be closed twice at 8 a.m. and 12 p.m. respectively to ensure that all SFP orders are shipped out on the same day; the current operating capacity ensures the on-time delivery of more than 10,000 large packages every day .

To ensure accurate and error-free cargo handling , SLMW uses a comprehensive warehouse management system (WMS) , standardized operating procedures, and a multi-post self-inspection mechanism to reduce the error rate. The current contract error rate is 0.1%, and the warehouse error rate is 0.05%, which is lower than the market error rate, and the daily fulfillment rate and SFP current execution rate have reached 100%.

Sellers on the US site please scan the QR code above and add the staff WeChat: SLMGroup01.

Or click the link: https://www.ennews.com/slm to experience SLMW's high-quality service immediately.