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What is warehousing consignment:

Consignment means that e-commerce cooperates with third-party fulfillment and logistics companies、 signs relevant contracts、 places its own goods in third-party warehouses、 or the purchased goods are directly delivered to third-party warehouses by the supplier、 the system provided by the third party matches the domestic waybill number with the international waybill number、 e-commerce makes item remarks in the system remarks column、 and the third party checks and verifies that there is no error The third-party warehousing company will help the e-commerce to handle the delivery、 packaging and delivery of goods. If the delivered goods are delivered in large batches、 in multiple days and batches、 it is necessary to put the goods on shelves in the system and the warehouse location、 place the goods in the corresponding warehouse location、 and ensure the consistency of product names and quantities. The customer only needs to place an order directly in the system next time、 set an inventory alert、 and replenish the inventory in a timely manner. This is warehousing.

Many people separate fulfillment from consignment. In fact、 in my opinion、 this is just one thing. It saves e-commerce from spending a lot of manpower、 material resources and energy on warehouse and operation、 and also improves the professionalism of operation. It also eliminates the need to send goods to e-commerce first、 then to e-commerce and then to logistics providers. It also greatly improves the timeliness、 while ensuring the speed and quality of logistics services.

Overseas warehouse is one of the distribution channels of cross-border e-commerce. The use of overseas warehouse allows unlimited expansion of the seller's product categories. Some products have a long service life and do not belong to FMCG、 but there are restrictions on the market demand、 the formation of scale、 and the sales in overseas warehouse. The product categories in overseas warehouse can be expanded indefinitely. And the overseas warehouse is not only used for storing and transporting goods. What service function does the overseas warehouse have? Today、 let's talk about the five functions of overseas warehouse.

1. Return and replacement services.

Generally、 multinational e-commerce sellers will inevitably encounter many problems、 such as account closure、 product failure to go on sale、 wrong SKU label、 etc.、 so they can use the overseas warehouse delivery mode to provide services such as return、 exchange、 and label change、 so that the product can gain value again and avoid loss of goods.

2. Value added services.

When using FBA、 the seller can simultaneously use overseas warehouse services to replenish goods nearby、 minimize transaction costs and reduce transaction risks. In addition to FBA transit、 overseas warehouses can also provide value-added services for sellers、 such as warehousing inspection、 goods putting on shelves、 inventory management、 order receiving、 order sorting、 order review、 multi-channel shipment、 etc.

3. FBA replenishment service.

Cross border sellers can place part of their goods in overseas warehouses. When they find that the FBA stock is insufficient、 they can immediately replenish the stock from overseas warehouses. This process does not require an appointment. It can ensure that the warehouse is not arranged in the peak season. This operation method can save a lot of freight costs.

4. Overseas warehouse issues one piece.

The Seller shall prepare the products in batches from home to overseas warehouse、 and then the staff of overseas warehouse shall check and put them on the shelf. When a buyer places an order、 the Seller only needs to issue a delivery order in the overseas warehouse management system、 and the warehouse staff will implement local delivery service in accordance with local instructions.

5. FBA transit、 FBA transit and FBA transit services.

In most cases、 the FBA is used in combination with the third-party overseas warehouse、 stock goods in the overseas warehouse first、 forward (replenish) the FBA regularly or irregularly、 and handle the return and replacement of goods from the overseas warehouse while delivering goods from the FBA.

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.

FBA headline by sea voyage is cheaper、 but it is relatively slow and cost-effective for large cargoes.

However、 if it is a small package、 air transportation may be more cost-effective and efficient.

The specific requirements shall be selected according to the products you transport and the time limit、 which is the most cost-effective