Italy Order Fulfillment Services | Italy DropShipping

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.

Which products are suitable for FBA? Is it big or small? Is it expensive or cheap? The products with the following characteristics are suitable for FBA.

1. Products with excellent quality and performance. Such products will not be returned or replaced generally、 which can greatly reduce the loss of sellers.

2. Small size、 high profit products. The product is small in size、 easy to transport and can save costs. However、 it should be noted that the product price should not be set too low. Because the delivery by FBA will incur relevant handling fees and various transaction costs. If the product price is too low、 the profit will also decrease. It is suggested that the price of FBA products should be more than 5~6 dollars.

In general、 FBA is suitable for small and medium-sized sellers of products with excellent quality、 small size and high profits. The advantages of other products are not obvious.

First of all、 we need to know two concepts: billing weight unit、 first weight and additional weight

Billing weight unit: The international express industry generally takes 0.5KG (0.5kg) as a billing weight unit.

First weight and additional weight: the first 0.5KG is the first weight for international express delivery、 and every additional 0.5KG is an additional weight. Generally、 the cost of hoisting is higher than that of continuous hoisting.

There is one price between 0.5KG and 0.5KG、 which is the first weight price. The part exceeding 0.5KG will be charged according to the additional weight price

Therefore、 the actual freight is equal to the first weight price+additional weight price

When the actual weight of the goods to be delivered is greater than the volume weight、 the freight=first weight freight+(actual weight (kg) × 2－1) × Renewal freight

When the actual weight of the delivered goods is small but the volume is large、 the freight=the first freight+(volume weight (kg) × 2－1) × Renewal freight

Note that the freight here is only the basic freight、 not the final total cost、 and there may be other additional costs.

Packaging fee: Generally、 international express companies provide free packaging、 cartons、 bubbles and other packaging materials、 but many items、 such as clothing、 can be packaged without extra fine packaging、 but some express companies will charge a certain packaging fee for valuable and fragile items. Packaging costs are generally not included in the discount calculation.

Fuel surcharge: all major international express will be updated in real time according to market conditions. Please consult customer service for specific fees.

Other uncertain expenses: such as service fees in remote areas、 sensitive freight charges for sending batteries、 powders、 liquids、 food、 brands、 etc.、 which are mainly related to the items and regions you send.

Basically、 total cost=(freight+fuel surcharge) × Discount+packaging cost+other uncertain costs

In addition、 different countries and different logistics channels have different basic charging standards、 and the cost may also be affected by many factors such as flight outage. The specific charging standards can also be subject to the real-time quotation of the express company.