In the operation of cross-border e-commerce, cost and profit accounting tend to be a similar situation. Product costs, platform commissions, shipping costs and profits each account for about a quarter, so many people can hear people looking at people Profits ah, 10 dollars to get things for $ 10 sold, behind this sentence is not seen cross-border electricity supplier sellers who can not afford the cost.
But for costs, commissions, shipping costs and profits, costs and commissions are relatively fixed. The biggest variable is freight and profit when the selling price needs to match the competitor’s price. Lower freight costs, the absolute profit is high, profit margins increase; and shipping costs are high, the absolute profit is low, profit margins are reduced.
Therefore, for cross-border electricity supplier sellers, it is very necessary in the logistics freight this piece work hard. In this article, I will briefly summarize some of the aspects of logistics in FBA in light of some frequently asked questions from trainees.
In general, in the FBA process, we usually use the delivery methods, including commercial courier, airlines and shipping.
Commercial Express mainly includes FedEx, DHL, UPS. In comparison, commercial courier the best time, usually 3-5 days to reach the United States (5-7 days to reach Europe), the price is more varied, I will not go into details here.
Overall, the FedEx clearance rigorous, for our sellers, it will naturally feel the arrival of the goods after the arrival of FedEx FedEx relatively weak customs clearance, from time to time there will be some clearance matters, more documents available, more procedures Need to go, or more customs declaration, DHL relative clearance capacity is relatively strong, the shipping price is also considered appropriate, but since the end of last year, there will always be freight forwarding on behalf of DHL customs duties prepaid, resulting in shipping costs Increase, UPS for small product price advantage is not obvious, but for the 76Kg or 100Kg above the price advantage of goods will be more obvious.
Aging, the three may have 2-3 days of bad time, if not particularly urgent goods, in the choice of the three can focus more on price and clearance ability to consider.
Airline generally refers to freight forwarding company through its own channels of direct air cargo delivery to the destination country, and then by the freight forwarding agency in the destination country delivery agency on behalf of the delivery of a logistics. Although green logistics is also by air, but the freight forwarders will be due to the goods rounding or flight positions, aging slower than the commercial courier 2-3 days, security, in the off-season are basically okay.
The main advantages of shipping relative to commercial couriers and airlines are the low cost, which is only about a quarter of the freight rate of commercial courier. Therefore, if the same products go by sea, the saved freight rate will boost the profit rate 20 %about. However, there is a benefit but there are disadvantages. The disadvantage of shipping is the long delivery time, which usually takes 30-45 days to the United States and to Europe even longer.
For sellers, it is necessary to consider the issue of timeliness, but also with their own cash flow, consider some of the ocean to reduce costs. Many large-capitalized big sellers have already transformed their logistics into seaborne earlier, gaining competitive price and profit margins through the reduction of shipping costs.
However, the medium and small sellers with higher capital turnover requirements are naturally unrealistic in shipping each time. Therefore, three courier (special line) and one shipping can be used for delivery. The first courier (airfreight) Sent the first shipment, after about 10 days to make up the second shipment (air), and then fill up the third shipment after about 10 days (air), when the third shipment of goods was almost courier, the first batch of shipping basically Just warehousing, because the large number of seaborne, to meet the longer sales cycle, before and after the first batch of seaborne imports, the second batch of seaborne cargo began to be prepared and issued, basically the first batch of seaborne products can be linked to the sales cycle.
In addition to the choice of shipping methods, cross-border electricity supplier sellers also need to consider the severity of the goods when they are selected. If the products are very large, consideration should be given to combining them with the heavier ones so as to avoid problems due to volume Excessive cost of shipping costs.