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Water cup Dropshipping and Fulfilment Services

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US fulfillment for transshipment and dropshipping

Generally speaking、 the overseas warehouse transshipment in the United States means that Chinese domestic e-commerce sellers transport their products to local overseas warehouses in the United States by air、 sea、 etc.、 and then forward the products to FBA warehouses or other overseas warehouses according to different needs.

The reasons for overseas warehouse transshipment in the United States are generally as follows:

1. It can operate on multiple account platforms.

2. Many goods are limited in Amazon warehouse due to size、 and can be normally stored in overseas warehouse.

3. Fast replenishment in peak season.

4. The goods can be intercepted in the middle and sent to the FBA warehouse.

One consignment of American overseas warehouse is that cross-border e-commerce sellers deliver products in bulk to the local third-party warehouse in the United States by express、 air delivery or sea transportation. After the order is generated on the platform、 the overseas warehouse processes the goods according to the order、 and then delivers them to USPS、 federal、 DHL and other local express delivery companies for delivery to the buyer. To put it simply、 follow these steps:

1. The seller arranges the first delivery of the goods to a third-party US warehouse;

2. The warehouse shall count the goods received and put them on shelves;

3. When a buyer places an order on the platform、 the buyer uploads the order in the American overseas warehouse system;

4. The warehouse receives the order instruction to distribute goods and deliver goods、 and domestic/international delivery;

5. The buyer receives the order item.

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.

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.

 

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