3PL Global Warehouse Network: How It Works and What to Plan
Quick answer: A 3PL global warehouse network is a set of fulfillment warehouses in different countries, run or partnered by one provider, that hold your stock near your buyers and ship orders locally. For sellers whose products are made in China it works as hub and spokes: the full range sits in a China warehouse, best sellers go in bulk to warehouses in your main markets, and each order ships from the location with stock closest to the customer. What you have to plan is how stock gets into each country (freight, customs, who is the importer), how much to send, how orders are routed, and what happens to returns and slow stock.
How the network fits together
- The hub (China). Products are bought, inspected and stored here. The whole catalog ships from here to every country, one parcel per order.
- The spokes (overseas). Warehouses in markets such as the US, UK and Europe hold only the products that sell every day there. Orders from those countries ship domestically.
- The links. Bulk freight moves stock from hub to spoke. Order routing decides which location ships each order.
The hub keeps feeding the spokes, so the China side still buys, inspects and packs every batch before it moves on. Deciding which products earn a place overseas is its own question; our guide to combining China and overseas fulfillment covers it product by product. This guide is about running the network once you've decided.
Getting stock into a country
- Prepare it in China. Inspect the batch, label every unit with its SKU barcode, mark each carton with SKU and quantity, and produce a packing list. Mistakes are far cheaper to fix here than after import.
- Book the freight. Sea for heavy or bulky goods, air when speed matters, rail as a middle option to Europe, door to door to the warehouse. Our guide to freight agents lists the questions to ask.
- Clear customs. In the US, a shipment worth more than $2,500 needs a formal entry, which needs a customs bond, and a named importer of record, usually you, answers for the declaration and the duty. A licensed customs broker files the entry. The upside since duty-free parcels ended: duty is paid once for the whole shipment instead of once per parcel.
- Register for tax where you hold stock. In the UK and the EU, keeping stock in a local warehouse and selling from it generally means registering for VAT in that country before your first sale, with no turnover threshold for businesses based outside it. Talk to a tax adviser before the first shipment.
- Receive at the overseas warehouse. Cartons are counted against your packing list and shelved by SKU. Stock isn't sellable until this is done, so count receiving time in your plan.
How orders find the right warehouse
Routing rules decide where each order ships from. Keep them simple:
| Situation | Usual rule |
|---|---|
| Customer's country has a warehouse with stock | Ship from that warehouse |
| No local warehouse, or it has run out | Ship from China |
| Multi-item order, one item only in China | Choose: ship everything from China in one parcel, or split and pay for two shipments |
| Product is being tested | Always China until it proves itself |
A stockout overseas shouldn't stop sales. With the fallback to China in place, the customer simply waits longer. Show the right delivery promise for each case at checkout so the date your customer sees matches where the parcel actually ships from.
How much stock to send
Two numbers drive every overseas shipment: when to send the next one and how big it should be. The figures below are an example; use your own sales and the door-to-door time your forwarder quotes.
| Input | Example |
|---|---|
| Daily sales of the SKU in that market | 20 units |
| Door-to-door time, including clearance and receiving | Say your quote is 35 days |
| Safety stock | 10 days of sales |
| How often you ship | Every 30 days |
- Send the next shipment when overseas stock falls to 20 × (35 + 10) = 900 units. Below that, you'll run out before the next batch is shelved.
- Size each shipment at 20 × 30 = 600 units, a month of sales.
Keep some of the SKU in China as well. It covers the gap if a shipment is delayed and serves every country without a warehouse. For the lead-time steps on the China side, see what a 3PL manages in your supply chain.
Costs to model before the first shipment
| Cost | Shipping every order from China | Through an overseas warehouse |
|---|---|---|
| Freight | Per parcel | Per bulk shipment, shared across all units |
| Duty and import fees | Per parcel | Once per bulk shipment |
| Warehouse fees | China pick and pack | China prep plus overseas receiving, storage and pick and pack |
| Last mile | Included in the line's price | Domestic postage from the overseas warehouse |
| Cash tied up | Low | A batch in transit and on shelves |
| Delivery time | Depends on the line | A few days |
Divide the bulk costs by the units in the shipment and add the per-order fees to get a cost per order you can compare with shipping from China. Overseas storage fees vary by warehouse, so ask for them before you send stock, not after.
Returns and slow stock
- Returns. Route them to the warehouse in the customer's country, where they can be checked and restocked. Sending returns back to China is slow and the goods can attract duty again.
- Slow stock. Bringing unsold goods home rarely pays. Stop replenishing, bundle the item with a best seller, discount it locally, and send smaller, more frequent shipments next time.
Checklist before your first overseas shipment
- The SKU has sold steadily in that market for several weeks.
- Every unit carries a barcode label and every carton is marked.
- Importer of record, customs broker and bond are arranged; local tax registration is done where needed.
- Overseas receiving, storage and pick and pack fees are quoted in writing.
- Routing rules and the China fallback are set up.
- A reorder level is set for the overseas stock.
- Returns go to the local warehouse.
How PackQuay runs a global network
Our own warehouse in Xinxiang, Henan is the hub: sourcing, inspection (20% of each batch free) and dispatch within 24 hours for stocked orders on 30+ shipping lines. The spokes are 18+ partner warehouses in the US, UK and Europe for 1–5 day domestic delivery, and each order is sent from the location that holds the stock. Our Shenzhen team books the bulk freight in between. Overseas fees depend on the warehouse and destination, so we quote them per case. Tell us your best sellers and main markets on WhatsApp.
FAQ
What is a 3PL global warehouse?
A network of third-party fulfillment warehouses in different countries that store a seller's stock near its customers and ship orders domestically, usually alongside a central warehouse near the factories.
Do I pay import duty when I send stock to an overseas warehouse?
Yes. Duty is paid when the bulk shipment is imported, once for the whole shipment rather than per parcel. In the US, shipments over $2,500 need a formal entry and a customs bond.
Who is the importer of record for stock sent to a US warehouse?
Usually you, the owner of the goods. The importer of record is responsible for the declaration, the duty and keeping records, while a licensed customs broker files the entry.
How much stock should I send to an overseas warehouse?
Send roughly a month of that market's sales per shipment, and send the next one when stock falls to daily sales multiplied by the door-to-door lead time plus safety stock.
Can I keep shipping from China when the overseas warehouse runs out?
Yes, if your routing rules fall back to the China warehouse. The customer waits longer, so update the delivery promise they see at checkout.