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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.

How to do the overseas warehouse dropshipping of super large goods

Because large products are troublesome in the operations such as palletizing and handling of goods、 the quantities are very large、 which requires the overseas warehouse staff to quickly record the warehouse location information of goods when warehousing、 and to quickly find the corresponding goods when outbound to complete the outbound.

Therefore、 we need to use an appropriate overseas warehouse system to cooperate with the management. It is suggested that you can check whether the overseas warehouse system includes such functions as receipt and consignment、 delivery allocation、 and delivery record、 which can help you manage large products more clearly.

The system independently developed by TODROPSHIPPING can complete the delivery forecast and the printing of the delivery order、 and the order number information of the final logistics will also be automatically returned to the system、 without the need for staff to manually upload the order number and manually match the order、 making the delivery easier and more efficient.

Although the proportion of large products in overseas warehouse products has declined、 there is still a lot of demand for them、 so we should pay attention to them.

How to choose Amazon FBA or overseas warehouse

Amazon and overseas warehouse are not contradictory、 on the contrary、 they can complement each other.

Amazon FBA has advantages in order fulfillment、 inventory and distribution. However、 compared with the third-party overseas warehouse、 FBA's storage cost is much higher. It is quite troublesome to return goods and clear up. In addition、 the first transportation cost in the peak season will rise a lot、 and in the peak season、 it will give you problems such as limited inventory and inability to put in the warehouse at one time. While many sellers use FBA as their sales warehouse、 they will choose a reliable third-party overseas warehouse as their secondary replenishment warehouse and return processing warehouse. The overseas warehouse will unpack、 temporarily store or directly send full containers to FBA after receiving the goods.