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Operation mode of overseas warehouse

Basic mode of overseas warehouse: for the first time、 you can prepare goods in small batches to the overseas warehouse、 and then prepare goods according to the sales volume of the platform. The overseas warehouse has an inventory pre-warning function、 which can be distinguished according to different selling levels.


The operation process of overseas warehouse is generally divided into three steps:


First、 the first journey (the domestic customs clearance reserve goods are delivered to overseas warehouses by sea、 air and express).


Second、 warehousing (cross-border e-commerce enterprises carry out remote filing of goods SKU in the system of overseas warehouses、 and other goods are scanned for warehousing and put on the shelf after warehousing).


Third、 delivery at the end of the delivery (cross-border e-commerce sellers place orders in the system of the overseas warehouse in real time after they have orders、 the overseas warehouse issues goods according to the seller's order information、 arranges local postal or express delivery、 and uploads the order number in the system of the overseas warehouse in real time). According to the operation process of Todropshipping overseas warehouse、 there are warehousing fees for warehousing、 and order processing fees and delivery fees for final delivery. If multiple orders are merged into one receiving address、 there are consolidation fees and container change fees.

What are the transportation pain points of medium and large products

01 Large goods are easily damaged during transportation. Due to the characteristics of large goods such as large volume、 high quality and high value、 it is particularly important to ensure the integrity of the goods during transportation. However、 some overseas warehouses will ignore this. For example、 some overseas warehouses will not provide waterproof packaging for the goods、 adopt professional packaging techniques、 and create protective clothing、 which will cause damage to large goods during transportation due to improper packaging protection.

02 Large capital investment and cost estimation. The purchase cost of medium and large parts is much higher than that of small parts、 which has certain requirements for the seller's capital、 selection、 logistics and other capabilities.

03 In terms of logistics、 overseas warehouses are required、 and the logistics cost accounts for more than 30% of the turnover. Due to product weight、 volume and other reasons、 most large products are shipped to overseas warehouses by sea. After platform orders are generated、 they are directly delivered to consumers from overseas warehouses. The logistics cost of large products usually accounts for about 30% of the turnover、 which is reflected in the following aspects: the length of goods exceeds the standard、 extra long surcharges、 overweight products include overweight charges、 product packaging is too large、 and the size does not meet the standard、 which may lead to uncontrolled logistics costs.

How to do well in overseas warehouse

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.

 

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