Overseas warehouse and slow-selling product management: risks and countermeasures

Although brand companies operating overseas warehouses have brought many advantages and dividends to the development of cross-border e-commerce, in actual operations, brand companies still need to face a variety of risks and limitations. First of all, the investment cost of overseas warehouses is relatively high. For example, a cross-border e-commerce company rented a 6,000-square-meter overseas warehouse in New Jersey, USA, with a monthly rent of more than US$10,000. Secondly, labor costs and comprehensive operating costs in the United States have also increased significantly. Building overseas warehouses requires strong financial strength and professional data analysis capabilities. Blindly following the trend of investment behavior may lead to unforeseen losses.

The risk of slow sales in overseas warehouses is also significant. Although a clothing accessories manufacturer invested more than 30 million yuan in stocking goods through overseas warehouses, only a few products ended up becoming best-sellers, and the remaining products were severely unsaleable. The consequence of slow sales is that once the goods need to be transferred back to the country, additional import costs will be incurred. This type of risk is particularly important for cross-border e-commerce companies.

In order to deal with the phenomenon of slow sales, e-commerce companies can consider giving slow-moving products directly to buyers as gifts. When an e-commerce company was selling down jackets, because some women’s socks were unsaleable, they decided to give women’s socks as gifts to customers who purchased down jackets. This strategy effectively prevented the occurrence of unsalable products. In addition, e-commerce companies can also optimize gift-giving strategies by setting effective time, choosing appropriate gift forms and controlling costs, thereby improving sales results.

For slow-selling products, modifying the title, main image and detail page is another effective method. When optimizing product titles, you can focus on keyword combination and ranking to improve the search matching of the product. When modifying your main image, make sure it’s attractive, such as using a bold background color and showcasing your product’s selling points. The detail page should provide detailed product information and beautiful pictures to attract buyers to purchase.

If a product is still unsaleable after evaluation, the company may need to take proactive measures, such as removing or deleting the unsalable product. This is because slow-selling products not only have difficulty obtaining natural search traffic, but may also drag down the overall weight of other selling products. Reasons for slow sales usually include price factors, insufficient basic optimization, seasonal reasons and weak market demand. In this case, the company should first analyze the reasons for the slow sales, then prescribe the right medicine and formulate corresponding treatment plans in order to turn the slow sales into hot sales.

To sum up, brand companies need to pay more attention to the operation of overseas warehouses and the management of slow sales, and reduce risks and improve sales performance through reasonable strategies and continuous monitoring.