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Advantages of self built overseas warehouse: it can improve the delivery speed of products

Save logistics costs、 control the return and exchange of goods and after-sales service、 control the storage、 avoid the problem of warehouse explosion and logistics warehouse arrangement. It should be noted that the start-up capital of the self built overseas warehouse is relatively high in the early stage、 and the problems that need to be managed in different places and the risks that need to be borne are relatively high. If there are funds and goods in the early stage、 we can consider building our own overseas warehouse.

Advantages of third-party overseas warehouse: time-saving、 labor-saving and worry free

The cost is relatively low. Professional teaching can also save logistics costs. It has the advantage of centralized processing. There is no difference between off-season and peak season. Personnel management and control is simple. There are UPS or FEDEX accounts for centralized shipment at the end. The price must be much cheaper than that of individual overseas warehouses.

For Amazon users in Chinese Mainland、 the first step of Amazon FBA includes two steps:

1. Deliver the goods to the warehouse of domestic service providers;

2. Domestic logistics service providers transport goods to Amazon warehouses (Amazon America or Amazon Europe)

One stop to shore overseas warehouses are built in Los Angeles and Mexico City、 providing one-stop control and management services such as first journey transportation、 cargo storage、 local return and exchange、 labeling、 etc. Domestic warehouses have opened the FBA direct delivery service of sea and air transportation in many places、 becoming a seamless bridge with 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.

The head stream sea transportation of Amazon FBA in the United States means that the goods delivered to the FBA warehouse are transported to the local Amazon warehouses in the United States in the mode of sea transportation and post delivery. Generally、 the rear section dispatching can be divided into UPS dispatching and truck dispatching、 that is、 UPS dispatching to warehouse or truck dispatching.

If it is Matson、 it is FBA's first journey is Matson Express、 and the last journey is truck delivery. The time limit for Meisen Express is 11 days for arrival、 and 5-8 days for truck delivery to Amazon warehouse.

There are three forms of overseas warehouse for cross-border e-commerce: FBA、 self built warehouse、 third-party warehouse

In fact、 managing the overseas warehouse is to manage its own goods and ensure that the goods are sufficient without wasting resources. This requires managers to consider sales data、 costs and other aspects to make full use of the overseas warehouse and help the normal supply of goods.