What are the benefits of overseas warehouses?
The most direct benefit of overseas warehouses is that there is a traffic tilt on some platforms, and you can achieve localized delivery and support more comprehensive after-sales services. At the same time, if your delivery performance is good, your account performance will also be good. Entering a virtuous cycle, your sales will further increase, and your categories can be further expanded.
1. Overseas warehouses can provide cross-border e-commerce sellers and logistics companies with higher profit margins and provide customers with a good shopping experience.
Overseas warehouses are stored directly locally, greatly shortening delivery time. Generally, you can check the delivery time of goods online, which greatly shortens the delivery time of goods, greatly reduces the transportation cost of goods, greatly shortens the delivery time, and greatly reduces the transportation cost of goods. It can be seen that overseas warehouses were created under such market demands.
2. Overseas warehouse orders not only break the barriers of the logistics industry, but also expand the types of transportation, reduce logistics costs, and help increase sales.
However, currently overseas warehouses are only mature in North America, Europe and other places, and overseas warehouses may not completely solve the cost problem. At present, cost control is the focus of logistics companies. Overseas warehouse costs mainly include three parts, namely header costs, warehouse and processing costs, and local distribution costs. In this regard, header costs refer to the transportation costs of transporting goods to overseas warehouses, warehouse and handling costs refer to the costs of storing customer goods in overseas warehouses and handling local distribution, and local delivery costs refer to the costs incurred in delivering goods overseas. It can be seen that co-delivery and co-delivery will be more widely used in overseas warehouse logistics systems to minimize the increase in logistics costs caused by dispersed transportation and order dispersion, and fundamentally reduce transportation costs.
When is it necessary to establish an overseas warehouse?
Judging from the peak seasons of previous years, the effect of using overseas warehouses is obvious. To make a mark in the peak season, you need to have sufficient stocking. The stocking time and stocking volume are what need to be considered most at this stage. 5- July is also the time when experienced sellers start stocking up and preparing to ship to overseas warehouses. When they arrive at the warehouse from August to September, it is just in time for the beginning of the peak season. Step on this rhythm, wave after wave until next year. March.
1. The market demand for the product must 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 dead inventory. However, the market size is more reasonable and needs to be evaluated by the seller based on the capital situation and turnover rate.
2. Focus on the total profit per unit time rather than the profit on a single transaction