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The significance of overseas warehouse for cross-border e-commerce
Overseas warehouses and fulfillment are of great significance to cross-border e-commerce. Overseas warehousing is to transport goods overseas for centralized storage、 which greatly reduces the transport cost of goods and increases the security of goods transport. To do cross-border e-commerce、 you need to first transport the goods to a foreign warehouse. If it is an overseas warehouse、 it is your own local warehouse. This warehouse can be rented or purchased by yourself. The initial investment for overseas warehouse is relatively large、 but once it is built、 there will be no storage and other costs.
Differences between international express delivery and sea transportation

In short

International express is door-to-door pickup and delivery

Sea transportation is from port to port、 from one country's port to another country's port.

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.

 

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