Pillow Order Fulfillment Services | Pillow Drop Shipping
1. The market demand of products should be large
This is the basic principle. Long tail products are not suitable for overseas warehouses、 because it will affect the conversion rate and produce life and death inventory. However、 the size of the market is reasonable、 and the seller needs to evaluate according to the capital situation and turnover rate.
2. Focus on the total profit per unit time rather than the profit of a single transaction
In general、 the profit margin of overseas warehouse of most products will be much higher than that of domestic shipment、 which is also the advantage of overseas warehouse.
Is it true that the profits of overseas warehouses are not as good as those of products shipped domestically、 so they must not be overseas warehouses? In fact、 it is not because we also need to comprehensively consider the conversion rate of overseas warehouse、 because products with high conversion rate can also achieve higher total profits through overseas warehouse!
This requires our sellers to look at overseas warehouses from a developmental and overall perspective.
For example、 if the profit margin of a product shipped from China is 20% and that of an overseas warehouse is 10%、 but the conversion rate of an overseas warehouse is 6 times that of a Chinese shipment、 the total profit obtained in the same time period is 3 times that of a Chinese shipment. Therefore、 we should not only look at the profit rate、 but also calculate the overall cost and benefit.
For Amazon users in Chinese Mainland、 the first step of Amazon FBA includes two steps:
1. Deliver the goods to the warehouse of domestic service providers;
2. Domestic logistics service providers transport goods to Amazon warehouses (Amazon America or Amazon Europe)
One stop to shore overseas warehouses are built in Los Angeles and Mexico City、 providing one-stop control and management services such as first journey transportation、 cargo storage、 local return and exchange、 labeling、 etc. Domestic warehouses have opened the FBA direct delivery service of sea and air transportation in many places、 becoming a seamless bridge with FBA.
