9 Key Strategies to Choose a China Distribution Center

 

How to Evaluate:
a. Check their years of operation in China.
b. Look for case studies or testimonials from businesses similar to yours.
c. Ask about their experience handling your specific product category (e.g., electronics, apparel, board games).

2. Strategy 2: Company Qualification

Make sure the distribution center complies with local regulations and holds necessary certifications. Non-compliance can lead to delays, fines, or even confiscation of goods.

Key Questions to Ask:
a. Are they licensed for cross-border e-commerce or intenational distribution?
b. Do they meet international standards like ISO or AEO (Authorized Economic Operator) certifications?
c. Can they handle specific product types like food or hazardous materials?

3. Strategy 3: Business Focus of the Distribution Center

Understanding the specific business focus of a distribution center is essential to ensuring it aligns with your operational needs. Distribution centers in China can vary significantly in their specialties, and choosing one that caters to your exact requirements can streamline your supply chain and reduce costs. Key considerations include:

Business Focus Like:
a. International Shipping vs. Domestic Logistics.
b. Air Freight vs. Sea Freight Expertise.
c. Industry-Specific Services.
d. Dropshipping vs Overseas Warehouse

4. Strategy 4: Proximity to Major Ports/Airports

The closer the distribution center is to major ports, airports, or freight hubs, the faster and cheaper your shipping will be. Time is money, especially in supply chain management, and proximity reduces both.

What to Look For:
a. Easy access to high-traffic ports like Shanghai, Shenzhen, or Ningbo.
b. Availability of international airfreight routes.
c. Road and rail connections to inland markets.

5. Strategy 5: Proximity to Your Suppliers

A distribution center near your primary suppliers ensures smoother restocking and reduces transit time and costs. It is especially crucial in industries where raw materials or components need to be shipped regularly.

Why It Matters:
a. Reduced shipping costs between suppliers and warehouses.
b. Better inventory management due to shorter lead times.

6. Strategy 6: Transparent Costs

Hidden fees can wreak havoc on your budget. Transparency in cost structures is essential when evaluating potential distribution centers in China.

Common Costs to Clarify:
a. Storage fees (monthly/volume-based).
b. Handling and labor fees.
c. Customs processing charges for international shipments.
d. Technology and integration costs, if applicable.

7. Strategy 7: Maximum Daily Parcel Dealing Capacity

Scalability matters. If your business grows rapidly or it comes to peak seasons, can the distribution center handle it? Ensuring they can meet your current and future parcel volume is a must.

What to Ask:
a. What’s their average daily parcel handling capacity?
b. Can they manage peak seasons or sudden spikes in demand?
c. Do they offer flexible storage space?

8. Strategy 8: Customer Service

Communication can make or break a partnership. Look for distribution centers that prioritize clear and timely communication.

Qualities of Strong Customer Service:
a. A dedicated account manager or point of contact.
b. Prompt responses to inquiries or issues.
c. Multilingual support if you don’t speak Chinese.

9. Strategy 9: Shipping Test

Before committing, run a shipping test to evaluate the performance of the distribution center. The test will reveal their reliability, efficiency, and compatibility with your business.

How to Conduct a Test:
a. Send a small batch of products through the center.
b. Measure delivery speed, accuracy, and condition of the packages.
c. Get feedback from customers on the experience.

10. Recommend Regions for Distribution Centers

China's logistics infrastructure varies across regions. Here are some top recommendations based on specific needs:

Shanghai and Jiangsu Province.

It is ideal for businesses focused on exports, thanks to proximity to major ports and airports.

Guangdong Province.

A hotspot for e-commerce and electronics, with well-developed air and sea logistics.

Zhejiang Province.

Suitable for textiles and small commodities, with seamless connectivity to nearby manufacturing hubs.

11. Get Started With Reliable China Distribution Center--SFC Service

As the first China fulfillment service provider, SFC has more than 15 years of order fulfillment experience in China and serves 10,000+ e-commerce sellers and crowdfunding sponsors.

Automatic fulfillment process

a. Auto-sync incoming orders from all eCommerce Stores.
b. Preset auto shipping rules to optimize the budget.
c. With fully automated equipment, more than 500,000 orders will be shipped out in 24H.

Standout service

a. ≥99.9% inventory accuracy
b. ＜3 out of 1,000 order discrepancy
c. 99.98% delivery within 24 hours
d. 24/7 online customer team

Customizable eCommerce Shipping Solutions

SFC eCommerce door-to-door shipping covers 220 regions and countries around the world, including emerging markets and remote areas.

Real-Time Tracking

Tracking information will be updated in 24 Hours to your eCommerce marketplace and a tracking email under your brand name will be sent to your buyer too. For your convenience, you can track your order status on your SFC dashboard.

12. FAQs

Q1. What are the most important certifications for a distribution center in China?

A1. Look for ISO certifications for quality and AEO certifications for trade compliance. Depending on your product type, they might also need licenses for food safety or hazardous goods.

Q2. How can I ensure my distribution center integrates with my inventory management system?

A2. Ask the center if they offer API integrations or compatibility with common systems like Shopify, WooCommerce, or SAP.

Q3. What’s the difference between a warehouse and a fulfillment center?

A3. Warehouses store inventory, while fulfillment centers handle order processing, packaging, and shipping for customers.

Q4. How long does it take to set up a partnership with a distribution center in China?

A4. It can take anywhere from 2 to 6 weeks, depending on the complexity of your requirements and the provider’s onboarding process.

Q5. Are there any red flags I should look for?

A5. Yes! Watch out for vague pricing, lack of transparency in operations, poor communication, and limited experience in your product category.