kettle Order Fulfillment Services | kettle Drop Shipping
Overseas warehouse distribution is a popular way in recent years. The main group is still domestic factory enterprises、 but there are also some cross-border sellers who can provide goods.
To put it simply、 cross-border distribution means that distributors distribute goods from suppliers、 while suppliers do not need to spend a lot of manpower to manage online operations、 promotion and other things.
In the distribution mode、 distributors do not need to manage inventory but only operate online. The supplier only provides inventory、 delivery and after-sales service. Different online management.
This model has great advantages. Suppliers can maximize their warehouse management advantages、 while distributors can concentrate more on their operations.
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.
