Overseas warehouses have their own obvious advantages and disadvantages. Therefore, sellers are more cautious about which goods to place in overseas warehouses. Generally speaking, we can consider placing the following types of products in overseas warehouses.
(i) Products with good quality, high price and profit
Although overseas warehouses do not have too many restrictions on product types, it does not mean that all products are suitable for overseas warehouses. Only products that will not be damaged or affected by long-distance transportation and multiple turnovers and products with high prices and high profits are suitable. For example, electronic products, jewelry, watches, glass products, etc. choose overseas warehouses, which can control the breakage rate and loss rate at a very low level, reducing the risk for sellers selling high-value goods.
(ii) Products with short sales cycle
Because if the product sells well, the inventory turnover will be fast, so there will be no pressure or unsalable goods, which is also conducive to the seller’s capital recovery. Of course, the hot-selling products in different regions and seasons are different. Sellers need to pay attention to market trends at any time and formulate a good sales strategy. For example, for best-selling products such as fashion clothing and fast-moving consumer goods, buyers can process orders more quickly through overseas warehouses and recover funds.
(III) Products with sufficient inventory and easy replenishment
Before using overseas warehouses, sellers are advised to conduct market dynamics analysis, supply analysis and inventory analysis. In addition to requiring good product quality, they also require sufficient supply and stable replenishment of products. If the supply and replenishment cannot be guaranteed, then it is not suitable to use overseas warehouses.
(IV) Products with large size and weight
If international express is used to transport large-sized and heavy products overseas, the freight will be expensive and the product specifications will be limited. If the transportation is completed in the form of general trade, it will be much more convenient. Sellers can use air or sea transportation for bulk transportation, which can effectively reduce logistics costs. For example, using overseas warehouses for home gardening, auto parts and other products can break through the product specification restrictions and reduce logistics costs.
(V) Others
Products with high turnover rates and obvious off-seasons, such as products that meet European and American holiday themes, buyers will pay more attention to timeliness, so such products are suitable for overseas warehouses. Products with large single shipments, although the sales speed is relatively slow, but products that have formed a certain sales scale, can also choose to go to overseas warehouses. Products that cannot be shipped across regions by domestic small packages, such as liquid products with higher profits or products with lithium batteries.