(Source: https://pltfrm.com.cn)
Introduction
For overseas brands entering China’s e‑commerce landscape, fulfillment strategy is a core pillar of success, directly impacting delivery speed, cost efficiency, and customer satisfaction. Choosing the right logistics footprint — such as fulfillment hubs tied to major demand corridors — enables overseas brands to meet local expectations for fast delivery and seamless service. With over ten years of experience helping overseas brands localize in China, we’ve guided them to leverage platform logistics infrastructure, SaaS visibility tools, and data‑driven location planning to create efficient distribution networks. This article breaks down key considerations and practical steps for overseas brands looking to map high‑impact logistics hubs across China.
1. Aligning Fulfillment Footprint with Demand Centers
1.1 Proximity to Major Urban Markets
Place inventory near tier‑1 and tier‑2 cities with high consumer demand such as Beijing, Shanghai, Guangzhou, and Chengdu. This positioning shortens delivery windows and improves customer satisfaction. For example, a European smart appliance brand reduced delivery times by 40% after positioning inventory closer to population hubs.
1.2 Regional Clusters for Broad Coverage
Beyond tier‑1 cities, consider fulfillment hubs in central and western regions like Wuhan and Xi’an to cover inland demand economically. Strategic clustering around diverse economic belts ensures balanced service levels across the country.
2. Leveraging SaaS Visibility for Network Planning
2.1 Demand Forecasting Tools
Use SaaS demand forecasting platforms that pull data from e‑commerce platforms and past sales trends to anticipate regional demand. Brands that implemented such tools improved stock allocation accuracy, preventing stockouts and excess holding costs.
2.2 Real‑Time Inventory Monitoring
Cloud‑based inventory systems offer real‑time visibility across multiple fulfillment hubs. This allows overseas brands to reroute inventory proactively based on demand surges, holidays, or promotional events.
3. Cost Optimization Through Location Strategy
3.1 Balancing Storage and Delivery Costs
Different regions in China have varying warehouse rental, labor, and transportation costs. Overseas brands should use location data analytics to evaluate total landed cost per region and adjust their network accordingly. A North American lifestyle brand saved 18% in logistics expenses by redistributing inventory across cost‑efficient zones.
3.2 Leveraging Local Delivery Partnerships
Integrate warehouse operations with local delivery services to reduce last‑mile costs. System integration with logistics APIs can automate rate calculations and route planning for each fulfillment hub.
4. Enhancing Delivery Speed and Service Levels
4.1 Split Inventory by Product Velocity
Store fast‑selling SKUs in hubs closer to high‑demand consumers while placing slower‑moving inventory in lower‑cost regions. This hybrid strategy reduces delivery times without inflating storage costs.
4.2 Seasonal and Promotional Planning
Use regional fulfillment hubs to manage peak demand during major e‑commerce events such as Singles’ Day or Double Twelve. Automated seasonal planning through SaaS platforms ensures inventory readiness and delivery reliability.
Case Study: A European Electronics Brand Enhances China Delivery
A European consumer electronics brand faced long delivery windows and customer dissatisfaction due to centralized shipping from overseas. Our agency helped the brand:
- Evaluate major logistics hubs based on historical sales and forecasted demand.
- Distribute inventory into selected China fulfillment hubs covering eastern and southern regions.
- Implement SaaS inventory and route planning tools to balance stock levels and delivery costs.
Within 7 months, the brand reduced average delivery time from 9 to 3 days, cut last‑mile logistics costs by 22%, and improved customer satisfaction scores by over 30%. This strategic positioning enabled better market competitiveness and stronger regional performance.
PLTFRM is an international brand consulting agency that works with companies such as Red, TikTok, Tmall, Baidu, and other well‑known Chinese internet e‑commerce platforms. We have been working with Chile Cherries for many years, reaching Chinese consumers in depth through different platforms and realizing that Chile Cherries’ exports in China account for 97% of the total exports in Asia. Contact us, and we will help you find the best China e‑commerce platform for you. Search PLTFRM for a free consultation!
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