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How to choose the first Chinese and American FBA

by:VIPUTRANS     2020-07-19
Let me tell you how to choose the first Chinese and American FBA program:

In the operation of cross-border e-commerce, cost and profit accounting will often become a similar situation, product cost, platform commission, freight and profit each account for about a quarter, so you can hear many people say, look at others What a high profit, 10 dollars for the goods sold for 10 US dollars, behind this sentence is not seen the cross-border e-commerce sellers can not avoid the costs.

But for costs, commissions, freight and profits, costs and commissions are relatively fixed. When the selling price needs to be compared with the price of competitors, the biggest variable is freight and profits. If the freight cost is reduced, the absolute profit will be higher and the profit rate will be increased; while if the freight cost is higher, the absolute profit will be lower and the profit rate will be lower.

Therefore, for cross-border e-commerce sellers, it is very necessary to work on logistics freight. In this article, based on some questions frequently asked by students, I will give a brief overview of some matters related to FBA's head-end logistics.

Generally speaking, in the first flight of Sino-US FBA, the shipping methods we usually use include commercial express, air line and sea freight.

Commercial express delivery mainly includes FedEx, DHL, UPS. Comparatively speaking, commercial express delivery has the best timeliness, usually arrives in the United States in 3-5 days (5-7 days in Europe), the price is quite different, I will not repeat them here. In general, FedEx customs clearance is rigorous. For our sellers, we will naturally feel that FedEx’s import customs clearance ability is relatively weak after the goods arrive in the destination country. From time to time, some customs clearance troubles will appear, more documents are provided, and more procedures are provided. Need to go, or more customs declarations, etc., DHL is relatively strong in customs clearance, and the freight price is also appropriate, but since the end of last year, there will always be freight forwarders collecting DHL shipments in advance, resulting in shipping costs. Increase, UPS price advantage is not obvious for small products, but for 76Kg or more than 100Kg goods price advantage will be more obvious. In terms of timeliness, the three may have a difference of 2-3 days. If they are not particularly urgent goods, the choice of the three can focus more on price and customs clearance.

The air freight line generally refers to a logistics method in which the freight forwarding company directly sends air shipments to the destination country through its own channel, and then the freight forwarding agency in the destination country dispatches the goods on behalf of the delivery. Although the dedicated line logistics is also air freight, each freight forwarding company will be 2-3 days slower than commercial courier due to the packing of goods or flight queuing, etc. In terms of safety, it is basically acceptable in the off-season.

Compared with commercial express and air freight lines, the most important advantage of ocean shipping is that it is cheap. It is only about a quarter of the freight of commercial express. Therefore, if the same product goes by sea, the saved freight can increase the profit margin. 20 %about. However, there are both advantages and disadvantages. The disadvantage of shipping is the long delivery time. Usually it takes 30-45 days to the United States, and it takes longer to reach Europe.

For sellers, it is necessary to consider the issue of timeliness, and at the same time, combine their own capital turnover and consider partial shipping to reduce costs. Many big sellers with strong financial strength have already converted their logistics into ocean freight early, and achieved competitive advantage and profit margin in terms of selling price through the reduction of ocean freight costs. However, for small and medium sellers with high capital turnover requirements, each sea transportation is naturally unrealistic, so you can use three express delivery (dedicated lines) and one sea shipping combination to ship, the first batch of express (air transportation) at the same time The first batch of sea freight is issued, and the second batch of express (air freight) will be added after about 10 days, and the third batch of air express (air freight) will be added after about 10 days. When the third batch of express goods are sold similarly, the first batch of sea freight is basically It just happens to be in the warehouse, because the large number of sea freight can meet the longer sales cycle. Before and after the first batch of sea freight is put into the warehouse, the second batch of sea freight goods starts to be prepared and sent out, which can basically connect the sales cycle of the first batch of sea freight goods.

In addition to the choice of delivery method, cross-border e-commerce sellers must also consider the weight of the goods when selecting products. If the goods are very large, they should be considered in combination with the heavier goods to avoid the volume. The extra freight cost caused by excessive weight.
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