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Human hair Fulfilment Centers and Warehouses

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 types of overseas warehouses

1. Self built warehouse by the seller

This category is the overseas warehouse built by the seller himself. The advantage of this kind of overseas warehouse is that the seller can control and manage itself and is flexible. The disadvantage is that the seller needs to solve the problems of warehousing、 customs declaration、 logistics and transportation、 and the construction cost and risk of self built warehouse are also large. In addition、 it is difficult to obtain advantageous prices in transportation if the delivery volume is not large.

2. Platform warehouse (e.g. Amazon FBA)

This is a service provided by Amazon itself for sellers. At the same time、 Amazon has many preferential policies for users: for example、 it helps sellers improve the ranking of products on Amazon's pages and become featured sellers. However、 the fees are expensive、 the customer service is not up to standard、 the flexibility is poor、 and it is also very annoying.

3. Third party overseas warehouse (such as Todropshipping fulfillment)

The actual cooperation between cross-border e-commerce and third-party overseas warehouses also falls into two categories.

The differences between air freight and express delivery in international freight transport

Air transport means ordinary air transport. When transporting large quantities of goods、 the general freight will be cheaper than express delivery. However、 they need to deliver the goods themselves、 declare customs and even apply for inspection. It may also inspect the goods.

Express delivery is not necessarily air transportation. If it is international transportation、 the delivery time in some places is not necessarily faster than ordinary air transportation. But usually、 there is no need for customs declaration and inspection、 and it is convenient to pick up and deliver goods at home.