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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.
In 15 years、 AliExpress has started the overseas warehouse project、 but this overseas warehouse is a cooperative third-party overseas warehouse. There are also introductions about overseas warehouse services on AliExpress's official website、 and you can also contact Taobo's supply chain.
For sellers、 the platform will give different support to overseas warehouse sellers
1) The flow must be inclined
2) Overseas warehouse sellers default to local return and exchange service、 which is also a better buyer experience
3) The setting of freight template allows you to set local delivery、 which is more reliable and preferred for buyers
Overseas warehouse itself also has many advantages: low scale effect、 low cost、 fast delivery of local return and replacement、 good buyer experience、 no congestion in peak season、 no impact of customs clearance、 buyer experience、 expand sales categories、 large goods can also be managed by warehouse and handled by a third party、 simple operation、 and platform traffic tilt
