In cross-border e-commerce business, choosing the right overseas warehouse is a crucial part. However, in addition to transportation costs, overseas warehouses also involve various hidden costs, which may increase costs and affect your profits without you noticing. This article will explore the various costs of UK overseas warehouses in depth to help you better understand and plan costs.
First-leg transportation fee
The first-leg transportation fee refers to the cost of transporting goods from domestic to UK first-leg transportation. Sellers need to choose the appropriate transportation method according to their needs to ensure that the goods arrive at the destination safely and quickly.
Storage fee
The storage fee refers to the cost of storing goods in the UK overseas warehouse, which is calculated according to the storage period and the volume and weight occupied by the goods. This is one of the basic costs of overseas warehouses, and sellers need to pay attention to the storage time of goods to avoid additional costs.
Management fee
The management fee refers to the cost incurred by overseas warehouse personnel for product entry, transportation, packaging and goods management, excluding labor costs. These costs are to ensure the smooth operation and management of goods, and sellers need to take this part of the cost into account.
Labor price
In the UK, the minimum wage for a worker is 7.2 pounds per hour per day. Adding the operating costs of the warehouse, labor costs are an important part that cannot be ignored. If a lot of manual operations are required, this part of the cost will be relatively high.
Delivery fee
The delivery fee refers to the cost incurred by the dropshipping service provided by the overseas warehouse. The seller pushes the order to the overseas warehouse, and the overseas warehouse will arrange the shipment and delivery of the product. The specific cost depends on the charging standard of the overseas warehouse.
Additional service fee
Additional service fees include the costs incurred by services such as transit, return and label change, and overseas customer service. These services may charge additional fees based on the services selected by the seller, and the seller needs to choose according to their own needs and budget.
By understanding the above fees, sellers can more comprehensively evaluate the operating costs of overseas warehouses in the UK, formulate reasonable cost budgets and business strategies to ensure the smooth progress of the business and maximize profits.