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At the end of 2019, the epidemic broke out on a large scale overseas, accelerating the digitalization of foreign trade, forcing overseas consumers' consumption structure to shift from offline to online. The ongoing COVID-19 pandemic has forced people around the world to stay indoors or self-isolate at home. This has led to a significant increase in sales of sex toys, especially in developed and developing markets, and a huge consumer group has promoted the development of the sex toy industry chain. Through the big data of Alibaba International Station, it can be found that women's underwear has become a dark horse category of consumption during the epidemic. Taking June data as an example, the cumulative number of orders for the whole month increased by 283% year-on-year, and the cumulative GMV increased by 368% year-on-year.
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Amazon FBA in the United States limits the number of products to be warehoused according to the sales volume.
Then、 it will save a lot of costs to fill at least one container at a time.
At this time、 the most necessary is the American overseas warehouse.
Therefore、 the most obvious cost savings are transportation fees (including customs duties、 AMS、 IFS declaration fees、 BOND fees、 importer agency fees、 etc.).
And the recent trip to the United States has been delayed.
So now it has become a necessary choice for Amazon sellers and overseas warehouses
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.







