FCL vs LCL Shipping: Making the Right Choice for Your Cargo

2024-05-28

How to use Overseas Warehouses Reasonably

Are Overseas Warehouses Important? "Many cross-border e-commerce sellers feel that they cannot use overseas warehouses and give up using overseas warehouses. However, in cross-border e-commerce logistics, overseas warehouses are still necessary. Knowing the importance of overseas warehouses, sellers We will definitely choose overseas warehouses.Next, the editor will explain whether overseas warehouses are important and how to use overseas warehouses reasonably.Is Overseas Warehouse Important? 1. Overseas warehouses can reduce logistics costs: cross-border e-commerce exports goods to overseas warehouses in the form of general trade, and completes the first-leg transportation in the form of batch shipments. It will be more cost-effective to use international express delivery in scattered forms.2. Overseas warehouses can return and exchange goods, which improves the shopping experience of overseas buyers: Buyers attach great importance to after-sales service. If you use overseas warehouses, it will be much more convenient for customers to return or exchange goods to overseas warehouses. Overseas warehouses can provide buyers with return and exchange services, improve buyers' shopping experience, and increase buyers' repeat purchase rate. For returned products, some overseas warehouses also provide relabeling services. Auto shipping overseas warehouses provide services such as relabeling, FBA product testing, and duty payment to make your products worry-free after sale.3. Overseas warehouses can effectively avoid cross-border logistics peaks: During holidays, sellers will focus on shipping a large number of goods after the holidays, which will inevitably seriously affect the speed of logistics operation and thus affect the buyer's receiving time. When using overseas warehouses, sellers must prepare goods in advance and send them to overseas warehouses in batches. When placing orders, they only need to issue instructions for delivery. There is no need to worry about slow logistics during peak periods.So regarding how to use overseas warehouses reasonably, there are different answers for large, medium and small sellers.How Different Sellers Should Reasonably use Overseas Warehouses.1. For small-scale sellers:For small sellers, the function of overseas warehouses should focus more on returns and exchanges. We all know that Amazon’s return and exchange rate has always been high. As a small seller, we should reasonably use overseas warehouses for secondary processing of returns and exchanges. When a return or exchange occurs and resale is not possible, Amazon will generally let you choose to discard or send it to a certain address. Due to Amazon's strict rules, many products will be directly listed as non-resaleable products by Amazon after being returned or exchanged by customers.At this time, if we have our auto overseas warehouse, we can send these goods to our overseas warehouse. Our overseas warehouse service personnel can repackage and label the goods for secondary sales, and send them back to the Amazon warehouse, so that You can recover the losses to the greatest extent.2. For medium-sized sellers:For medium-sized sellers, returns and exchanges are a basic need and a must-have condition. In addition, medium-sized sellers have more urgent needs for overseas warehouses.① Medium sellers may have more than one account. In order to save shipping costs, they may send the goods to overseas warehouses for storage at once. Otherwise, sending them all together to FBA will cause correlation.② Not all accounts will have the same performance, so it is necessary to place them in overseas warehouses for allocation. Therefore, medium-sized sellers need a stable and reliable overseas warehouse to help them allocate and plan resources.3. For large-scale sellers:For large-scale sellers, they may have chosen to build their own overseas warehouses because they have a huge demand for overseas warehouses. In addition to the same needs as small and medium-sized sellers, they may also need to identify, repair and upgrade damaged goods. Upgrading, etc. At this time, the overseas warehouse is equivalent to a support center for this seller abroad.According to the importance of overseas warehouses compiled by the editor and how different sellers can reasonably use overseas warehouses, no matter how large a cross-border seller is, there is actually a demand for overseas warehouses. Different sellers have different levels of demand for products. Therefore, when the majority of cross-border e-commerce sellers lay out their Amazon seller stores, it is best to take overseas warehouses into consideration.

2024-11-22

Step-by-Step Guide to Amazon FBA Inventory Replenishment

Efficient inventory replenishment is crucial for Amazon FBA (Fulfillment by Amazon) sellers to prevent stockouts, reduce storage costs, and optimize cash flow. This guide breaks down key strategies and processes tailored to different product lifecycle stages, ensuring you stay ahead in managing your FBA inventory.1. Replenishment Strategy for New ProductsNew products require careful planning to ensure adequate stock while minimizing overstock risks.Sales ForecastingUse metrics like review rate and average reviews to estimate future sales.Calculation formula:Reorder Quantity = (Lead Time + FBA Inbound Time + Inventory Receiving Time) × 30-Day Average Daily Sales – In-Transit Inventory – Current InventoryExampleDaily sales: 30 unitsLead time: 10 daysFBA inbound and receiving time: 25 daysIn-transit inventory: 300 unitsCurrent inventory: 450 unitsRequired Order = (10 + 25) × 30 – 300 – 450 = 300 units2. Replenishment Strategy for Growth StageDuring the growth stage, it is essential to maintain consistent inventory levels to support increasing sales while accounting for market fluctuations.Average Sales MonitoringMaintain at least one month's inventory on hand.Regularly review sales trends and adjust forecasts to avoid overestimating demand.3. Replenishment Strategy for Maturity StageIn the maturity stage, the focus shifts to balancing inventory levels to minimize storage costs while preventing stockouts.Cost Control with "Just-in-Time" ShippingImplement a "small but frequent" replenishment approach.Ship weekly using sea freight, aligning shipment quantities with one week’s sales volume.Aim to keep FBA inventory levels above 50 days of supply.4. Replenishment WorkflowInventory Data ManagementDownload Inventory and Sales Reports:Pull data from Amazon's backend, though this can be time-intensive with a large number of SKUs.Leverage ERP Systems (e.g., WIMOOR ERP):Automating calculations and streamlining processes saves time and improves accuracy.Key Features of ERP Systems:Inventory and Order Management: Seamlessly track and manage products, purchase orders, and storage.Smart Procurement: Automatically calculate replenishment needs for multiple stores and marketplaces.Shipping Optimization: Plan shipments to prevent stockouts and reduce warehousing fees.Real-Time Inventory Monitoring: Minimize excess storage costs while improving cash flow.5. Steps to Create an FBA ShipmentUpload Product Information: Choose the FBA fulfillment option in your Amazon seller account.Select Amazon Barcode: Convert to Amazon-standard barcodes for inventory.Provide Dangerous Goods Information: Fill in hazard details if applicable.Set Shipping Address and Packaging Details: Define your shipment destination and packing type.Create Shipment and Input Packing Information: Include quantities, weights, and dimensions.Print and Attach Labels: Ensure boxes are labeled correctly before shipping.6. Advantages of Using ERP ToolsERP systems enhance the replenishment process by automating and simplifying complex workflows.Benefits:Automation: Sync directly with Amazon’s backend, eliminating the need for frequent manual logins.Dynamic Calculations: Auto-generate replenishment suggestions based on real-time sales data.Open Source and Scalability: Systems like WIMOOR ERP offer open-source versions, enabling modular upgrades and commercial use.ConclusionBy following these steps and leveraging the strategies outlined above, Amazon sellers can streamline their FBA inventory replenishment process, minimize risks of stockouts, control storage costs, and optimize cash flow. Whether you’re managing new products, navigating growth stages, or optimizing mature SKUs, an effective inventory strategy ensures long-term success on the Amazon platform.FAQsHow can I calculate the right amount of inventory to reorder?Use this formula: (Lead Time + FBA Inbound Time + Receiving Time) × Daily Sales – In-Transit – Current Inventory.What is the best way to handle inventory during peak sales periods?Use an ERP system to monitor real-time sales and automate replenishment suggestions for seamless restocking.How do ERP tools help with FBA inventory management?ERP tools automate calculations, optimize shipments, reduce storage costs, and ensure inventory balance.

2024-06-13

The Advantages of Trading Companies Over Factories

When selecting a supplier for your import needs, choosing between trading companies and factories is a critical decision that can significantly impact your business operations. While factories might offer the advantage of lower prices, trading companies provide a range of benefits that often make them a better choice for many buyers. Below are several reasons why trading companies can be more advantageous than factories.Enhanced Customer ServiceTrading companies excel in customer service, which is a crucial aspect of the sourcing process. Their primary focus is on the customer, ensuring a smoother communication process and attentive service. This customer-centric approach makes it easier to address any issues or customization needs more effectively compared to factories, which are primarily focused on production.Broader Product RangeOne of the primary advantages of trading companies is their capacity to offer a broader range of products. Unlike factories, which typically specialize in specific products, trading companies work with multiple factories, making it possible for them to provide a diverse array of products. This variety is particularly beneficial for buyers looking to source different items in smaller quantities.Lower Minimum Order Quantities (MOQ)Trading companies generally offer lower minimum order quantities compared to factories. This can be extremely valuable for small businesses or those needing smaller product batches. Factories usually prioritize large orders, which can lead to longer wait times for smaller orders. Trading companies, on the other hand, can accommodate smaller orders more readily.Reduced RiskWorking with trading companies can also reduce the risks associated with international trading. These companies are adept at managing the complexities of sourcing from multiple factories, ensuring consistent product quality and reliability. This is crucial in an environment where factories can sometimes go bankrupt or change operations unexpectedly.Professional CommunicationTrading companies often employ staff who are well-versed in international trade, fluent in multiple languages, and experienced in handling international business transactions. This proficiency minimizes the risk of misunderstandings and errors, enhancing the overall communication process. Factories, conversely, may not have staff with the same level of language skills or international business acumen.Specialized ServicesTrading companies frequently offer value-added services that can significantly enhance the purchasing experience. These services can include quality control, consolidation of orders from multiple factories, and assistance with export documentation. By taking on these additional responsibilities, trading companies make the sourcing process more streamlined and efficient for buyers.Flexibility and StabilityLarge trading companies tend to be more flexible and stable than individual factories. They can offer better payment terms and are less likely to be affected by sudden disruptions. This stability is essential in ensuring that buyers receive their products on time and at the agreed-upon quality.ConclusionWhile factories may provide cost advantages, trading companies offer a plethora of benefits that can make them a more effective and reliable option for many buyers. Their focus on customer service, broader product range, lower MOQ, reduced risk, professional communication, specialized services, and overall flexibility and stability make them an invaluable partner in the sourcing process. By choosing to work with a trading company, buyers can streamline their importing processes and enhance their overall business operations.By considering these factors, businesses can make informed decisions that align with their specific needs and goals, ensuring a smoother and more profitable importing experience.

FCL vs LCL Shipping: Making the Right Choice for Your Cargo

FCL: Full Container Load

Pros and Cons

LCL: Less than Container Load

FCL vs. LCL: The Shipment Volume

FCL vs. LCL: The Transit Times

FCL vs. LCL: The Cargo Types

FCL (Full Container Load) has specific requirements for certain goods, particularly those that are fragile, hazardous, or have unique dimensions. These requirements might include:

LCL (Less than Container Load) shipping also has specific requirements for certain types of goods, especially when these goods need special handling or are sensitive in nature. Key considerations include:

Conclusion