Warehouse in China

International trade is impossible without warehousing services.

Picking up appropriate storage solutions can significantly improve your business with Chinese partners.

Let us help you to find out the best warehousing option for you, as well as introduce you to all the nuances of the warehousing processes.

What happens if my goods get damaged in the Chinese warehouse?

When your goods get to some warehouse, the responsibility for their security lies on the shoulders of such a storage facility.

However, you (as a buyer) don’t have to worry about figuring out such issues directly with the warehouse management.

As your trustful freight forwarding partner, Bansar will hold this obligation instead of you to make sure that your goods will arrive safely at the final destination.

Top Tips to choose the warehouse in China?

There are a lot of obvious things which has to be taken into consideration while choosing a warehouse in China (like location, fees, etc.)

However, these are not always the most important things.

That is why Bansar specialists recommend looking closely at the following points as well:

#1. Free storage option. A lot of warehouse providers have such service as free storage (some warehouse provide 3 months free for example).

Please, keep in mind that Bansar provides unlimited free warehousing option for all its clients.

#2. Consolidate shipping option. Consolidate shipping is a good service for LTL buyers and those who get their goods from multiple suppliers.

At Bansar warehouses we can consolidate your shipping most effectively and securely.

#3. Repacking/additional packing option. Sometimes, suppliers make not enough to secure your goods before transit.

If Bansar workers see such issues, they can repack your goods or add extra packaging.

#4. Ability to reinforce the goods when loading. Good package is not always enough to secure your goods inside the container.

Bansar specialists know all tips and tricks on how to reinforce the container before the shipping process starts.

You can see the reinforced container in the photo below.

#5. Labeling option. The warehouse labeling system is needed to easily identify and manage goods during the shipping process.

It also ensures customers receive the item they ordered and not the wrong item in mislabelled packaging.

#6. Photos for the goods. Sometimes the buyer needs to have the photos of ordered goods before getting them in reality. Bansar staff can help you with this as well.

Can I deliver my goods at Bansar warehouse by myself?

Yes, you can contact Bansar customer service and arrange the deal about the warehouse storage anytime.

What is the cheapest warehouse storage in China?

If your goods are manufactured in China and you’re selling them worldwide, storing the products in China and ship them out to your clients whenever needed is a perfect idea!

However, it is hard to mention the average price for warehouse services.

Here at Bansar we’ve made all the efforts to find the best logistic and shipping partners (including storage owners) which can help to skyrocket your business.

We’ll head back to the warehousing options which Bansar can offer you later in this FAQ.

What are the main types of warehouses in China?

There are five main types of warehouses in China:

#1. The private warehouse can be a property of a seller, manufacturer or reseller.

Such companies are using their warehouses exclusively for their trade activities.

#2. Public warehouses are typically owned by government bodies and connected companies.

Their services are available to private firms for a rental fee.

Such warehouses are set up to help small traders who are not capable to buy and maintain their property.

#3. Bonded storage is a property which can be owned both by governmental and private entities. 

They are facilities used to store imported goods for which import duty is still to be paid.

The private agency which wishes to run bonded storage has to obtain a special license from the government.

#4. The co-operative warehouse is a property owned by a co-operative society.

Such societies provide storage facilities and the best rates to their members only.

The main purpose of these warehouses is not to earn profit but to help members of some society.

#5. Distribution centers have a huge capacity and provide fast processing of large quantities of goods for a short period.

These structures serve as points in the distribution system where products are gathered from the various seller and quickly transferred to their customers.

Typically, distribution centers have an automotive control system, which makes the movement of goods quick, fast and flawless.

Warehouse and forklifts

What is the warehouse?

A warehouse is a building where goods are stored.

Warehouses can be used by various trading entities, such as

The warehouse is a large plain building which has special equipment to handle and store goods.

Why does the location of the warehouse matter?

As a buyer, you have to be sure that your warehousing option is located as near as it is possible.

Even if such warehouse is located in other countries, it must be situated near logistic routes.

Additional transportation costs might affect the final price for goods and your business in general.

What is warehouse management system?

A warehouse management system is also known as WMS.

It is software and processes that allow organizations to control warehouse operations connected with goods.

Such operations might include inventory management, picking processes and auditing.

First of all, the warehouse management system can view goods at any time and location, whether in storage or in transit.

Also, WMS can build the supply chain from the manufacturer to the warehouse, then to the buyer.

Alongside the warehouse management system, the TMS (transportation management system) is often used.

How are storage fees charged for warehouse items?

There are three general options while charging clients for the warehouse services.

Pay per cubic foot (meter)

Some fulfillment houses base their storage fees on the number of cubic feet that their items occupy.

To calculate cubic feet, you multiply the length, width, and height of an item.

An important consideration with this model is if and how the fulfillment house rounds their measurements.

For example, many companies will round up to the next full inch when calculating the LxWxH dimensions of an item.

That can make a significant difference with your storage bill.

Pay per pallet

It is also common to charge by the pallet for storage.

For example, a fulfillment house may have a monthly charge of $17 per pallet. 

You can see that in this scenario, it’s a little cheaper by the pallet, but that’s not always the case.

There might be a few important rules in such case:

  1. Pallet Size (the average pallet size is 64 cubic feet; however, some fulfillment warehouses will use industrial-sized pallets, which measure 42” x 48” x 48”, or 56 cubic feet).
  2. Items Per Pallet (not all items fit neatly on a pallet. So even though, when calculated, it seems your 2,000 items will fit on one pallet, that may not be the case, and you may wind up paying for two pallets).
  3. Restrictions. Some fulfillment companies have low storage rates per pallet, but only allow one unique item or SKU per pallet. So if you have 10 SKUs, even though your total inventory may fit on 5 pallets, in this case, you’ll actually be paying for 10 pallets worth of storage.

Pay per SKU

SKU stands for stock keeping unit.

It is a third common method used is to charge for storage.

For instance, you may have a monthly charge of $2.00 for each individual SKU you have in stock.

This method of charging can also be used in combination with a per pallet storage fee.

Palletized cargo

How are fulfillment fees charged for warehouse items?

This is your entire pick-through-shipment fee and includes order picking and packing, shipping cost, packing boxes, and inner packaging.

It even covers returns processing, though not for items in categories with free customer returns.

How to prepare shipment before sending to the warehouse in China?

In the vast majority of cases, the obligation of preparing shipment before sending it to some warehouse lies on the supplier.

However, Bansar also can help you with the packaging of your goods if such need arises.

 

Warehouse robots

What is a bonded/non-bonded warehouse in China?

Bonded warehouses are used to store goods which were approved by the customs but not yet gone through all customs formalities.

The better part of China’s bonded warehouses is situated out in cities with huge airport traffic (such as Hangzhou, Shenzhen, and Zhengzhou).

Bonded warehouses are divided into public bonded warehouses, self-use bonded warehouses and dedicated bonded warehouses according to the selected objects.

What Is a warehouse fulfillment center?

A fulfillment center is a physical location from which a third-party logistics (3PL) provider (also known as a fulfillment provider) fulfills customer orders.

Fulfillment centers are in general used by the eCommerce retailers.

A fulfillment center exists to get online orders to customers in a timely manner and relieve eCommerce companies of managing this complicated process.

You can read this guide if you want to learn more about the fulfillment centers in China.

What is the main equipment and why is it important while choosing the warehouse in China?

In practice, the main equipment of the warehouse can be divided into several groups:

  1. Storing equipment (shelves, pallets, racks, etc.)
  2. Handling equipment (forklift trucks, cranes, robot carts, and so on).
  3. Inventory management equipment (scanners, barcodes, databases with this info, etc.)

As long as the technology progress comes forward, warehouse equipment became more automotive and even controlled by the AI.

What is a cold storage warehouse in China?

A cold storage warehouse is a construction which is artificially cooled inside to or below a temperature above zero of 45 degrees Fahrenheit. 

Such storages are used to contain food and other perishable products for thirty days or even more.

What is a warehouse operator?

A warehouse operator is responsible for managing the supply chain process, handling vendor orders and interactions, implementing safety regulations, and checking all packages for quality assurance.

It may be required to operate a forklift or other warehouse machinery.

Cold storage facility

How can warehouse operations be improved?

We’ve already discussed how WMS or warehousing management systems can improve the productivity of the warehouse.

Basically, using WMS is not the only way to speed up processes in the warehouse.

Among others, the implementation of modern technologies and professional staff introduction can be used.

How does warehouse receipt help businessmen?

Speaking simple words, the warehouse receipt is a document which proves ownership of some goods that are stored in a warehouse.

A warehouse receipt can be also used by warehouse operators as evidence that some products of a certain quality and quantity have been secured at their premises.

Warehouse receipts may be issues in negotiable or non-negotiable forms.

It is more common for warehouse receipts to be issued in negotiable form.

This allows for the transfer of goods without actually having to deliver them in the real world.

How do warehouse robots work?

The use of robotic technologies is a new phenomenon in the warehousing business.

There are several types of warehouse robots which are quite popular in China and worldwide.

Automated guided vehicles (AGVs) transfer the inventory around your warehouse.

They normally follow magnetic stripes or a track laid in your warehouse.

For those AGVs that don’t follow a track, they have additional safety scanners that allow them to be used with manual vehicles.

They’re also loaded with a map of your warehouse and the locations of all inventory.

Autonomous mobile robots (AMRs) are like AGVs because they also use sensor technology to move goods around the warehouse.

However, these robots don’t require a preset route between locations of the warehouse.

They can analyze and understand their environment through the use of computers, onboard sensors, and maps.

AMRs can freely move around the warehouse because they create own routes based on the tasks needed to perform.

They also can change routes when necessary and avoid obstacles in their environment.

These robots offer efficiency, accuracy, and security during the sorting process.

Aerial drones can also help to optimize warehouse inventory procedures.

They can be connected directly to your WMS (warehouse management system) to access your existing inventory database.

Aerial drones use optical systems alongside deep learning technologies and computer vision to move through the warehouses.

Such robots don’t mess up with valuable space and aren’t likely to get in the way of people or other automotive devices.

Drones are actually the quickest tool to get to high and dangerous places.

Automated storage and retrieval systems (AS/RS) are tools that bring goods in and out of the warehouse.

Such a system can be accompanied by warehouse execution software that directs the operations. 

AS/RSs can have various forms and constructions depending on the type of tasks, the system needed, or the goods that it will be working with.

They work either as a shuttle that moves on a fixed track or a crane that retrieves goods between aisles.

Order picking can account for 50% or more of warehouse labor costs, especially for large warehouses.

By cutting down on the labor and time spent on retrieval, workers can concentrate on the more complicated processes, such as packaging and posting goods. 

Alibaba automoted warehouse

How does warehousing work in China?

Approximately a decade ago, China has many problems with the ‘’warehousing of yesterday’’.

This means poorly constructed warehouses, in which there are outdated or non-existent information systems.

There was a high lack of accountability and inventory visibility due to old technologies and unprofessional workers.

However, things have slightly changed in the last decade, when Chinese entities started to use modern automotive robots, management systems, etc.

For example, Alibaba (the largest retailing platform in the world) proved how useful robots can be at their warehouse in China.

Using 60 robots, they reduced human labor by 70%.

The robots operate over Wi-Fi to bring inventory to workers to package and post it.

As a result, Alibaba owners gained huge profits and became the leading worldwide company.

Does Amazon have warehouses in China?

Yes, Amazon has its own warehouses situated in China.

However, because of the lack of popularity in China, there is no official Amazon retail service here.

This means that even if you have a Chinese supplier who sells on Amazon, you can’t require him to put goods in some warehouse in this country.

I want to buy a warehouse in China. Is this possible? How can I start?

As you may know, there are huge areas of vacant warehousing space available in China.

But before you start to think of buying such property, you have to keep in mind a couple of things:

  • property in China is quite expensive when compared to possible personal incomes;
  • buying property is complicated for foreigners. 

It is more recommended for the expats to rent or lease warehousing space.

Does Alibaba have a warehouse outside of China?

Alibaba doesn’t have warehouses in oversea markets, so all the logistics go through this country in any case.

Where are Taobao warehouses located in China?

Interesting fact: Taobao has no personal warehouses at all!

This company just provides a platform and completed supporting service for sellers to start a business on it.

That is why Taobao sometimes is referred to as Chinese eBay.

Taobao makes money mainly from advertising products for sellers, and they don’t charge a handling fee for each order.