Global demand for ‘Made in India’ products has never been stronger. Every day, millions of international consumers browse Indian apparel, handicrafts, toys and home décor on e-commerce platforms — drawn by the country’s rich artisanal heritage, high quality craftsmanship and increasingly contemporary design sensibilities. Yet, a large portion of these potential customers never complete their purchases.
The culprit? Prohibitively long shipping timelines — often 10 to 12 business days — and high delivery fees. International consumers are spoiled with one day delivery making the long timeline a huge deterrent. For lower-ticket items in particular, the combination of cost and delay creates just enough friction to prompt cart abandonment, turning genuine interest into lost opportunity.
Meanwhile, sellers from Southeast Asia and China are offering fast and affordable fulfillment, providing the kind of delivery experience global customers now expect. In contrast, many Indian sellers still rely on direct shipping, limiting their ability to compete on price and convenience. With global cross-border e-commerce estimated to grow up to USD 7.9 trillion by 2030, this delivery gap can impact Indian businesses’ ability to compete globally. Indian exporters must adopt fulfillment solutions that align with international delivery standards, because in the digital economy, speed isn’t a luxury, it’s the baseline.
Overseas warehouse deployment: A strategic approach to global fulfillment
So, what has worked for other global trade competitors? The answer lies in the deployment of overseas warehouses — a strategic approach by which sellers store inventory at warehouses in the destination country. Currently, 60% of Chinese businesses rely on third-party, e-commerce platform, or self-owned overseas warehouses to provide express delivery services. This enables them to capture significant market share through faster delivery times and reduced shipping costs.
At its core, an overseas warehouse is more than just a storage facility in a foreign country — it is a strategic asset that bridges sellers and international customers. These warehouses function as local fulfillment centers, enabling sellers to store, organize, and distribute their products efficiently in their target markets. Instead of shipping products individually from the country of origin, sellers forward-deploy their inventory in bulk. When a customer places an order, products are shipped from these warehouses, dramatically reducing delivery times and shipping costs.
Real-world impact: The evidence in favor of the overseas warehouse model
China’s overseas warehousing strategy has driven remarkable results. Their s e-commerce exports hit USD 331 billion in 2023, with the Global Trade Research Initiative (GTRI) identifying overseas warehouses as a key driver. The report also cautioned that without similar infrastructure, India’s e-commerce exports might reach only USD 25 billion by 2030, significantly short of the government’s target. Studies have shown that overseas warehouses enhance customer satisfaction through wide delivery coverage, high efficiency, and low cost. Storing inventory in the destination country mitigates the risk of demand variability and transportation delays, as observed by a UK-based study on international supply chains. Seller experience with overseas warehouses is also typically positive. For instance, exporters using Amazon’s Fulfillment by Amazon (FBA) program have reported 12x sales increase after adopting the overseas warehouse model.
Strategic advantage: Key benefits of overseas warehouses
Overseas warehouses offer more than fast shipping — they level the playing field for exporters. With products stored closer to end customers, sellers can offer next-day or two-day delivery options, lower shipping costs, more reliable delivery estimates, and easier returns processing — essentially matching the service that customers expect from domestic sellers. The cost benefits are equally compelling. Bulk shipping to overseas warehouses can offer up to 30% reduction in per-item logistics and reconciliation costs in comparison to individual shipping methods. Overseas warehouses provide scalable infrastructure that adapts to seasonal demands and market expansion.
Debunking myths: Common misconceptions about overseas warehousing
Despite these clear advantages, several persistent myths continue to discourage Indian sellers and stakeholders. Many believe storage costs are prohibitive, yet storage can cost as low as 60-90 cents per cubic foot per month, depending on the product and location.
The perception that forward-deployment is too risky also deters exporters. While there is no guarantee of sales, data consistently shows significant sales growth after adopting optimized overseas warehousing. Moreover, bulk shipping reduces the risk of damage compared to individual shipments, protecting both the product and the seller’s reputation.
Concerns about high customs clearance costs are also common. However, clearing bulk shipments is more cost-effective than processing individual orders, as sellers pay for reconciliation of a single shipping bill for multiple units.
The road ahead: Overseas warehouse model needs governmental backing
The benefits of reduced shipping times and enhanced customer experience make overseas warehousing compelling for global competition. The path forward requires strategic government intervention. First, establishing dedicated overseas warehousing zones through government and private partnerships could significantly reduce the initial investment burden for exporters. Second, including overseas warehouse costs under export promotion schemes could make the model more accessible to small and medium enterprises. Third, streamlining customs procedures and documentation for bulk exports to overseas warehouses could further optimize the cost benefits.
E-commerce export programs like Amazon Global Selling are already deploying this method to engage more sellers and drive sales, signaling its growing importance in cross-border trade. With the right policy support and infrastructure development, overseas warehousing can transform India’s export capabilities, enabling sellers of all sizes to compete effectively in global markets.
The article is authored by Anil Bhardwaj, Secretary General, The Federation of Indian Micro and Small & Medium Enterprises (FISME)
