In the last lesson, we mentioned that "the number and scale of overseas warehouses in the United States have grown the fastest. At the same time, the number of overseas warehouses in the United Kingdom, Germany, and Japan has nearly doubled compared with 2019. The total area of overseas warehouses in Australia has grown at a rate compared with 2018 It has already reached 6 times this year, and the rapid growth is surprising. It can be seen that the saturation of overseas warehouse markets in certain regions is far from bottoming."
As a result of the epidemic, the effective stocking of overseas warehouses has saved many sellers from various problems such as "direct mail cannot be delivered" and "FBA warehouses restricted storage".
So, what kind of product is it suitable for stocking with overseas warehouses?
First of all, we must analyze the shopping habits of local buyers in our overseas warehouse area and the local market demand in a targeted manner. It sounds pretty vague, so how do we deal with it?
For example, platforms such as eBay and Amazon usually conduct a statistics on their own database. If you are a seller of the corresponding platform, you can search and pay more attention to this kind of information.
Secondly, due to the differences between regions, buyers in different regions have different preferences for similar products. Sellers should appropriately use the existing background data to carry out a customer profile to achieve a more targeted effect.
Next, it is to use the soaring words in the search term analysis to develop overseas warehouse products with specific market potential.
What kind of products must be used in overseas warehouses?
(1) Products that are bulky or overweight, cannot be shipped in domestic small packages, or are too expensive. (Furniture/Lighting/Large Auto Parts/Outdoor)
(2) Daily-use fast-moving consumer goods, which are very in line with local needs, and those products that need to be delivered quickly. (Tools/Household necessities/Mother and baby products)
When sellers are working on the platform, they will definitely notice an assessment standard for the timeliness of receipt, and each platform has different assessment standards for this. Some are more demanding, some are more relaxed. For platforms such as Amazon, higher evaluation scores will have certain advantages for FBA entry restrictions. Then, it is inevitable to stock up an overseas warehouse for some "high time-sensitive" goods.
Of course, what we cannot ignore is the issue of storage costs. Therefore, among the above-mentioned products that must be used in overseas warehouses, high profits are also one of the selection criteria.
What other products can I choose to use overseas warehouses?
(1) Products that cannot be delivered by domestic small packages or express delivery (products with lithium batteries/liquid products)
(2) For products that are popular in foreign markets, bulk delivery is more advantageous, and costs are shared equally. (3C accessories/explosive clothing/long-lasting standard products)
In general, your product can guarantee a certain rate of order; the product value is high, the profit is high; the product volume is large; the domestic and foreign freight gap is large, then you can consider doing overseas warehouses.
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