Starting August 14, cross-border sellers in Indonesia will face major tax adjustments! The mandatory withholding tax of 0.5% will be enforced, combined with a 10% value-added tax (VAT), significantly compressing profit margins. The traditional low-price, high-volume model will become completely ineffective. More critically, the new regulations require e-commerce platforms (such as TikTok Shop, Shopee, etc.) to upload transaction data in real time, with tax oversight tightening significantly, leading to a sharp increase in compliance costs for sellers! I. New Regulation Interpretation: Cross-border Sellers Face Double Blow to Profits Mandatory 0.5% Withholding Tax Previously, Indonesia had relatively lenient tax regulations for cross-border e-commerce, but starting August 14, all platform sellers must pay a 0.5% income tax (PPh 0.5%), which is directly withheld by the platform and cannot be avoided. 10% Value-Added Tax (VAT) Fully Implemented In addition to income tax, the Indonesian government now requires e-commerce transactions to pay a 10% value-added tax (VAT). This means cross-border sellers cost structures will undergo significant changes, with profits on low-priced goods nearly eliminated. Platforms Must Report Transaction Data in Real Time, Leaving No Loopholes The new regulations require platforms like Shopee, TikTok, and Lazada to synchronize transaction data in real time with the tax system. Previous tax evasion tactics exploiting information gaps are now completely ineffective. II. Shopee Indonesia has already taken action! An additional processing fee of 0.56 yuan per order Before the new regulations take effect, the platform has already acted! Recently, Shopee Indonesia announced that it will charge an additional processing fee of 0.56 yuan (approximately 1,200 Indonesian rupiah) per order, further squeezing sellers profits. III. Why has the Indonesian government suddenly taken such decisive action? Balancing online and offline competition Previously, e-commerce sellers enjoyed tax advantages, giving them a significant price edge, which made it difficult for offline physical stores to survive. The new regulations aim to promote fair competition and force e-commerce platforms to comply with regulations. Combating tax evasion and increasing fiscal revenue The Indonesian government has been strengthening tax oversight in recent years, and these new regulations are expected to generate significant additional revenue for the state treasury. IV. How should cross-border sellers respond? Optimizing logistics is key! The new regulations are not just about taxes; they are a comprehensive test of supply chain, logistics, and compliance. 1. Logistics timeliness is a matter of survival Indonesian customs and e-commerce platforms have extremely high logistics requirements: Delayed updates of logistics information Orders deemed abnormal Hefty fines Delivery delays Decreased store rankings 2. Overseas warehouses are the optimal solution Pre-stocking inventory in local Indonesian warehouses can significantly reduce delivery times and avoid penalties and negative reviews caused by logistics delays. Recommended: Smart Logistics Indonesia Overseas Warehouse 1. Six self-operated warehouses covering Indonesias core regions 2. Digital ERP system for real-time order synchronization, processing over 40,000 orders daily 3. Extremely low error rate to support sellers compliant operations V. Future Trends: The Era of Precision Operations is Here This tax reform signifies: ✔ The end of the low-price bulk inventory model; a shift to high-profit products is necessary ✔ Logistics compliance is critical; overseas warehouses will become standard ✔ Increased tax costs require a reevaluation of pricing strategies

Still struggling with cross-border e-commerce logistics? Order volumes are increasing, but logistics costs remain high? Delivery times are slow, and customer complaints are constant? Customs clearance processes are complex, and goods are frequently detained? If youre facing these challenges, Indonesias overseas warehouse drop shipping service is the perfect solution for you! Why choose Indonesias overseas warehouse drop shipping service? 1. Significantly reduce costs and increase profits No need to build your own warehouse: eliminate high costs associated with leasing, management, and labor. Lower international shipping costs: Pre-stock goods in Indonesias local warehouses to avoid high cross-border direct mail shipping fees. Reduce inventory pressure: Ship on demand to avoid stockpiling risks and improve cash flow flexibility. 2. Ultra-fast delivery, skyrocketing customer satisfaction Local shipping: Orders are shipped directly from Indonesias warehouses, reducing delivery times to 1-3 days! Increase repeat purchase rates: The fast delivery experience encourages buyers to repurchase, leading to a significant increase in store ratings. 3. One-stop service, saving time and effort Professional customs clearance: Ensure compliance with declarations to avoid goods being detained or returned. Smart warehousing: The system automatically manages inventory with precision and efficiency. Real-time logistics tracking: From inventory receipt to delivery, logistics information is updated in real time, providing peace of mind for both buyers and sellers. 4. Mitigate risks for more stable operations Compliant operations: A professional team familiar with Indonesian tariffs and e-commerce regulations reduces legal risks. Flexibly adapt to policy changes: Overseas warehouse partners promptly adjust strategies to ensure business continuity. 5. Capture the market and boost competitiveness In the highly competitive Southeast Asian e-commerce market, logistics speed and service quality are key! By using Indonesian overseas warehouses, your store will have: Faster deliverysurpass your competitors and win buyers favor. Lower costsmore flexible pricing and greater profit margins. Better experiencereduce after-sales issues and enhance brand reputation. Who is it suitable for? Sellers on Shopee, Lazada, and TikTok Shop Indonesia Cross-border e-commerce sellers with independent websites Merchants looking to expand into the Indonesian market but lacking local warehousing resources How to get started? Stocking inventory: Ship products in bulk to the Indonesian overseas warehouse. Order synchronization: Once an order is placed on the store, the system automatically pushes it to the warehouse. Express shipping: The warehouse processes orders on the same day and delivers them quickly to buyers.

In todays increasingly competitive cross-border e-commerce landscape, overcoming logistics bottlenecks and enhancing the end-consumer experience have become critical challenges for every seller. The drop shipping model offered by Brazilian overseas warehouses is opening a door to the South American market for many cross-border sellers. Why is the Brazilian market worth paying attention to? As the largest economy in Latin America, Brazil has a population of 210 million and a rapidly growing e-commerce market. According to statistics, the size of Brazils e-commerce market reached 161 billion Brazilian reais (approximately 32 billion US dollars) in 2022, with an annual growth rate of around 20%. However, Brazils complex customs policies and high logistics costs have deterred many cross-border sellers. It is against this backdrop that the Dropshipping from Overseas Warehouse model has emerged in Brazil, serving as a key solution to unlock the potential of the Brazilian market. What is the drop shipping model? In simple terms, drop shipping (Dropshipping from Overseas Warehouse) refers to a service model where sellers transport goods in bulk to overseas warehouses within Brazil for storage. Once an order is placed, the overseas warehouse directly handles the entire process of sorting, packaging, and local delivery. Compared to traditional cross-border direct mail, the most notable features of this model are: Products are pre-stocked within Brazil Order fulfillment is fully localized Consumers enjoy a logistics experience indistinguishable from local shopping Analysis of the Four Core Advantages 1. A Significant Improvement in Logistics Efficiency Delivery times are reduced from an average of 15-30 days for cross-border direct mail to 3-5 days for local delivery. In core cities like So Paulo, next-day delivery is even possible, completely resolving the last-mile challenge. 2. Significant reduction in overall costs By reducing unit transportation costs through bulk sea freight, while avoiding international shipping fees and tariffs for individual packages. Actual data shows that overall logistics costs can be reduced by over 40%. 3. Return processing is no longer a hassle Overseas warehouses provide local return addresses, reducing the return and exchange cycle from months to days, significantly improving consumer experience and reducing seller losses. 4. Platform traffic acquisition advantages On local mainstream e-commerce platforms like Mercado Livre, sellers using local shipping can achieve higher search rankings and exclusive traffic support. Practical guide: How to launch Brazil overseas warehouse fulfillment? Step 1: Product selection strategy Prioritize small-sized, lightweight, and high-priced items Focus on Brazilian-specific demands: summer clothing, electronics, fitness equipment, etc. Avoid high-tariff categories: such as cosmetics, luxury goods, etc. Step 2: Overseas Warehouse Selection and Evaluation Geographic Location: Prioritize warehouses near So Paulo and Rio de Janeiro System Integration: Confirm compatibility with API integration for platforms like Shopify and Mercado Livre Service Scope: Does it include value-added services such as customs clearance, labeling, and return processing? Step 3: Inventory Management Adopt a small batch, high frequency replenishment strategy Set safety stock warning lines Utilize inventory dashboard tools provided by overseas warehouses Step 4: Order Processing and After-Sales Service Establish an abnormal order handling mechanism Develop localized return and exchange policies Provide Portuguese-language customer service support Success Story: A Chinese Sellers Comeback in Brazil A Shenzhen-based 3C seller saw explosive growth in the Brazilian market after adopting the overseas warehouse fulfillment model: Average delivery time reduced from 28 days to 4 days Repurchase rate increased by 300% Monthly GMV exceeded US$500,000 Return rate decreased from 15% to 3% The seller summarized the key to success as: accurately understanding Brazilian consumers demand for fast delivery, while leveraging the localized advantages of overseas warehouses to provide Portuguese-language after-sales support. Potential Risks and Response Strategies Customs Risks: Countermeasures: Choose overseas warehouses that offer double clearance and tax-inclusive services Prepare complete and compliant customs declaration documents in advance Inventory Risks: Countermeasures: Purchase inventory insurance Implement dynamic inventory monitoring Currency Risk: Countermeasure: Use foreign exchange hedging tools Select overseas warehouses that support multi-currency settlement Future Trends: Intelligent Upgrades for Overseas Warehouses With technological advancements, Brazilian overseas warehouses are evolving toward intelligent solutions: Automated sorting systems enhance operational efficiency AI algorithms optimize inventory distribution Blockchain technology enables end-to-end traceability Green warehousing reduces carbon footprint Translated with DeepL.com (free version)

In the Philippine e-commerce market, logistics efficiency directly affects store operational performance and customer experience. Many sellers choose overseas warehouses to optimize their supply chain, but how to pick the most suitable overseas warehouse? Chinese self-built and self-operated overseas warehouse in the Philippines has become the first choice of more and more sellers with localized operation, efficient management and cost advantages. Today, lets have an in-depth analysis: why should Filipino e-commerce sellers choose Chinese self-built and self-operated one-stop overseas warehouse? 1. Lower cost and higher efficiency International logistics costs are a major pain point for cross-border e-commerce. If every order is sent directly from China, the shipping cost is high and the time limit is slow, which seriously affects the profit and customer experience. And Philippine local overseas warehouse can help sellers: ✅ Reduce international shipping costs: prepare goods in bulk in advance to the overseas warehouse to dilute the logistics cost of a single piece. ✅ Reduce warehousing costs: self-owned warehouses are usually more flexible than third-party warehouses and have lower warehousing fees. ✅ Automated management: Intelligent systems automatically process orders, reduce manual operations and improve shipping efficiency. For small and medium-sized sellers, self-built self-owned warehouses are more cost-effective, especially suitable for Shopee, Lazada and other platforms for Philippine local stores. 2. Speed up logistics, seize the market opportunity Philippine consumers have higher and higher requirements for delivery speed, and next day delivery or even same day delivery has gradually become the trademark of e-commerce. By choosing a local overseas warehouse in the Philippines, you can:

I. Core Selection Criteria Qualifications and Compliance Confirm whether the overseas warehouse has a local business license, tax registration and customs record in the Philippines to avoid legal risks. Prioritize a team that is familiar with the customs clearance process in both China and the Philippines to ensure merchandise compliance (e.g. FDA certification, import restrictions, etc.). Location and Infrastructure Proximity to core cities such as Manila: shorten end-to-end delivery time and cover major consumer markets. Warehousing conditions: check constant temperature, moisture-proof and security facilities, especially for sensitive commodities such as electronics and cosmetics. System and Technical Support ERP/WMS system: support real-time inventory synchronization, multi-platform order docking (e.g. Shopee, Lazada), automated ordering. Data Transparency: Provide inventory warning and sales analysis reports to help stocking decisions. Logistics Network and Timeliness Confirm the integration of local mainstream logistics providers (e.g. JT, LBC) to ensure that the last mile covers the entire territory. Standard delivery time commitment (e.g. 24-48 hours in Manila, 3-5 days in remote areas). Cost Structure Cost breakdown: Compare headway ocean/airfreight prices, warehousing fees (by volume/day), order processing fees, return and exchange fees. Hidden costs: such as long-term warehousing fees, peak season surcharges, etc. Second, the unique advantages of Chinese-owned overseas warehouse Language and cultural communication Chinese language customer service and docking team to reduce instruction misunderstanding and solve problems efficiently (e.g. emergency replenishment, after-sale disputes). Localized Operation Experience Familiar with Philippine consumer preferences (e.g. high percentage of COD cash payment), holiday promotion rhythm, provide stocking advice. Value-added services Customized services: labeling, packaging change, product quality inspection, photo inspection. Return processing: support local quality inspection, refurbishment and resale to reduce losses. III. Risk Avoidance and Field Verification Field inspection or third-party verification Inspect the warehouse through video inspection, or commission a third-party organization to assess the level of operation (e.g., order processing timeliness, error rate). Trial operation stage First send out small quantities of goods to test the whole process (inbound - on-shelf - outbound - after-sales), and monitor the actual performance. Review contract terms Clarify the liability for inventory loss/damage, service SLA (e.g., order processing time), and exit mechanism (e.g., clearance and return fees). IV. Marketplace Adaptation and Scalability Multi-platform support: whether it is compatible with Shopee, Lazada, TikTok Shop and other mainstream platforms. B2B/B2C compatibility: e.g. serving wholesale customers and retail orders at the same time. Expansion potential: whether to support the warehousing needs of neighboring countries in the Philippines (e.g., Malaysia, Indonesia) in the future. Translated with DeepL.com (free version)

In recent years, as domestic e-commerce competition has become increasingly fierce, more and more sellers have set their sights on overseas markets, especially in Southeast Asia. Among them, Indonesia, as one of the largest e-commerce markets in Southeast Asia, with a population of more than 276 million, Internet penetration continues to grow, with huge potential for e-commerce. But many sellers still have questions: Is it too late to enter Indonesias local e-commerce? How to find a reliable overseas warehouse? Can Southeast Asian e-commerce make money in the end? Today, we will discuss these issues in depth to help you seize the new opportunities of Southeast Asian e-commerce! First, the status of the Southeast Asian e-commerce market: is it too late to enter? Can tell you very clearly: not at all late! Policy support: China encourages enterprises to go out, especially the promotion of the Belt and Road policy in Southeast Asia, to provide convenient conditions for cross-border trade. Demographic dividend: Indonesia (276 million), the Philippines (110 million), Vietnam (nearly 100 million) and other countries with rapid growth of Internet users, e-commerce penetration rate still has huge room for improvement. Consumption upgrade: with the rise of middle class in Southeast Asia, the demand for online shopping has surged, especially the rapid growth of electronic products, household goods, fashion apparel, beauty care and other categories. Conclusion: Southeast Asian e-commerce is still in a period of rapid growth, and there is still a huge opportunity to enter now! Second, can Indonesias local e-commerce be done? Key Challenges and Opportunities ✅ Opportunities: Large market, less competition: compared to the domestic e-commerce involution, Indonesias local e-commerce competition is relatively mild, there is still a blue ocean market. Social media e-commerce explosion: social e-commerce such as TikTok Shop and Instagram Shopping are growing rapidly in Indonesia, suitable for content marketing. Government support for e-commerce development: the Indonesian government is actively promoting the digital economy, and logistics, payment and other infrastructure continues to improve. ❌ Challenges: High logistics cost: Indonesia is a country of thousands of islands, logistics and distribution efficiency is low, choosing the right overseas warehouse is crucial. High localization operation requirements: need to understand the local culture, payment habits (e.g. COD cash on delivery accounts for a high percentage), holiday promotional nodes, etc. Policy compliance: Indonesia has certain restrictions on imported goods and needs to pay attention to tax and customs clearance policies. Suggestion: Prioritize light and small items and high profit products to reduce logistics costs. Cooperate with local overseas warehouses to improve logistics efficiency. Do a good job of localized operations, such as optimizing the Indonesian language details page, provide local customer service support. Third, how to find a reliable Indonesian overseas warehouse? Overseas warehouses are a key part of cross-border e-commerce, which can significantly improve logistics efficiency and reduce the cost of returns and exchanges. Here are a few ways to find an overseas warehouse in Indonesia: 1. Cooperation through cross-border logistics service providers JT (JT): has a well-established warehousing and distribution network in Indonesia. LWE (Logistic Worldwide Express): focusing on the Southeast Asian market, providing integrated warehousing + distribution services. Ninja Van: covering many cities in Indonesia, suitable for small and medium-sized sellers. 2. Through the official cooperative warehouse of the e-commerce platform Shopee Indonesia Overseas Warehouse: sellers stationed in Shopee can apply for the official warehouse and enjoy the platform traffic support. Lazada Indonesia Warehouse: Lazada provides FBL (Fulfilled by Lazada) service to help sellers fulfill their contracts quickly. 3. Local third-party overseas warehouse Waresix: Indonesias local logistics company, providing warehousing + distribution services. SiCepat: a well-known logistics brand in Indonesia, with warehousing covering major cities. Considerations for choosing an overseas warehouse: ✔ Warehousing costs (billed by volume/weight) ✔ Distribution range (whether it covers the target market) ✔ System docking (whether it can be seamlessly docked with platforms such as Shopee, TikTok, etc.) ✔ Returns handling capability (to reduce after-sales costs) Fourth, why do some sellers fail to do Southeast Asian e-commerce? According to industry experience, failed sellers usually have the following problems: 1. lack of determination, fear Many novice sellers do not dare to invest, the water test mentality is serious, resulting in operation, product selection, promotion are not in place. 2. no price advantage, follow the trend of product selection blindly follow the sale of popular products, but the supply chain has no advantage, and ultimately fell into a price war. 3. Insufficient operation experience Not familiar with platform rules, advertising techniques, localized marketing strategy, resulting in low conversion rate. 4. no core products, rely on followers No differentiated products, easy to be imitated or surpassed by competitors. Key to success: Choose the right market segments (e.g. Muslim clothing, household small appliances, etc.). Translated with DeepL.com (free version)

In the field of cross-border e-commerce, logistics efficiency directly affects the shopping experience of buyers and the operating costs of sellers. For sellers entering the Indonesian market, the Indonesian overseas warehouse is a favorable tool that cannot be ignored. It not only realizes extremely fast delivery, but also provides a full range of services such as one piece delivery, evaluation, return and exchange of goods for labeling, helping sellers to easily cope with cross-border logistics challenges. What is Indonesia overseas warehouse? Indonesia overseas warehouse is a warehouse center set up by international logistics service providers in Indonesia itself. Sellers can prepare the goods to the warehouse in advance, and when the order is generated, the overseas warehouse will directly complete the process of packing, shipping and delivery. This approach eliminates the long wait for shipment from the country, allowing buyers to receive goods faster, while reducing the sellers logistics management pressure. Four core advantages of Indonesia overseas warehouse 1. Extremely fast out of the warehouse, improve buyers experience Compared with the logistics cycle of 7-15 days for delivery from China, Indonesia overseas warehouse can realize local delivery within 72 hours, which significantly shortens the delivery time, reduces buyers anxiety of waiting, and improves the rate of re-ordering. 2. Reduce logistics costs and increase profit margins Bulk transportation is more cost-effective: sellers can focus on preparing goods for overseas warehouses by sea or air, and share the cost of headway logistics. Reduce the pressure of warehousing: Overseas warehouses provide professional warehouse management, avoiding the high investment of sellers to build their own warehouses. Avoid high cross-border freight: local delivery is cheaper than international express delivery, especially suitable for small and medium-sized goods. 3. One-piece delivery, easy to manage orders Sellers only need to prepare the inventory in advance to the overseas warehouse, the subsequent picking, packing, labeling, shipping all completed by the warehouse, the real realization of the zero worry about the operation. 4. Professional after-sales service, to solve the problem of returns and exchanges Worry-free returns and exchanges: Overseas warehouses can collect returned goods on behalf of the seller, and carry out quality inspection, labeling, and re-shelving to reduce losses. Evaluation support: help sellers deal with evaluation orders and improve store weight. Indonesia Overseas Warehouse Operation Process Signing Cooperation: Choose a reliable Indonesia overseas warehouse service provider and sign a cooperation agreement. Prepare goods for warehousing: Ship goods to Indonesia overseas warehouse by sea/air transportation. Stocking and shelving: warehouse scanning and recording system, sellers can check the inventory in real time. Order Processing: After the buyer places the order, the system automatically synchronizes, and the warehouse completes picking, packing, and shipping. Extremely fast delivery: Delivered by local logistics, reach buyers within 3 days. Which sellers are suitable? ✅ Sellers on Shopee, Lazada, TikTok Shop and other platforms ✅ Cross-border merchants who want to improve logistics timeliness and reduce costs ✅ Stores that need to handle returns and exchanges, reviews ✅ Brands selling high repurchase rate, FMCG products Translated with DeepL.com (free version)