Storage basket Order Fulfillment Services | Storage basket Drop Shipping

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.

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.

1. Lower logistics cost: direct delivery from overseas warehouses in the United States to customers is equivalent to domestic express delivery、 which is lower than that from China to foreign countries.

2. Faster delivery time: After the first transportation of American overseas warehouse solves the complex problems of transportation、 customs declaration、 customs clearance、 etc.、 you don't need to worry about the customs declaration and customs clearance of the articles in the warehouse、 wait for orders、 and ship at any time.

3. Higher product exposure: if the platform or store has its own warehouse overseas、 then local customers will generally give priority to local delivery when choosing to shop、 because this can greatly shorten the time of receiving goods、 the advantages of overseas warehouse、 and also enable sellers to have their own unique advantages、 thus improving the product exposure and improving the sales of the store. Todropshipping has overseas warehouses in Europe and the United States. It is a good choice because of its convenient delivery、 transit and warehousing.