Why is the rent of self-operated logistics warehouse more expensive than outsourcing to third-party logistics warehouse?

At present, most sellers are still struggling whether to build their own warehouse logistics or outsource it. If they build their own warehouse logistics, how can they solve all kinds of troubles such as funds, personnel recruitment and site selection? Seeing that many brothers and sisters in the electric business are suffering from warehouse logistics problems, perhaps it is a good choice to change the habit of doing all the work and outsource the warehouse.

in fact, many brand businesses have outsourced their own warehousing and logistics business, such as Xtep, outsourcing their own warehousing and logistics business to a third party, and the management procedures from product warehousing to delivery are all completed by the third party company, as long as a staff member is appointed to track and summarize this part of warehousing operation in time every month. Hongxing Erke also entrusted the warehousing and distribution links in its e-commerce business to a third party for integrated warehousing and distribution management.

I calculated an account. "According to the company's total logistics business expenses of more than 13 million yuan last year, if all of them are outsourced, it can save nearly 2.5 million yuan, which can reduce the expenses including warehousing and personnel management by nearly 19%."

however, some other e-commerce companies choose to build their own warehousing and logistics systems by building warehouses and buying equipment, but they are faced with the problems of land acquisition by warehouse addressing, recruitment, ERP upgrade and running-in, and huge equipment idle waste. The reason is mostly because e-commerce companies do not know enough about logistics warehousing outsourcing companies, including their business models, operational processes and other business capabilities, as well as concerns about information security risks.

so the cost of self-operated logistics warehousing is too high.