Many novice sellers do not know how to choose logistics when they enter the Amazon platform. This article will introduce three common logistics models for sellers.
1. Self-built overseas warehouses
Self-built overseas warehouses refer to the seller building warehouses, configuring equipment and information service systems in the target country at his own expense. The advantage of this model is that the seller can fully control the sorting, transportation, inventory and order processing of goods, realize personalized and professional services, improve inventory turnover and utilization, reduce long-term costs, establish the image of the platform, and encourage scientific innovation. This model is suitable for sellers with large capital scale, high management level and willingness to take risks.
The disadvantage of self-built overseas warehouses is that the early investment is high, and it is necessary to rent land, purchase equipment, hire employees, etc., which increases financial risks and operational difficulties. At the same time, we also need to face the legal, tax and customs issues of the target country, as well as uncertainties such as policy changes and market fluctuations.
2. Jointly built overseas warehouses
Jointly built overseas warehouses refer to the seller cooperating with external companies to build overseas warehouses. The advantage of this model is that the seller can share risks and costs, use the resources and experience of partners to achieve localized operations, flexibly adjust inventory and cooperation periods, and adapt to market changes. This model is suitable for sellers with small capital scale, insufficient to support self-built overseas warehouses, and unwilling to bear risks independently.
The disadvantage of overseas warehouse construction is that the seller needs to share profits with partners, the scale effect is not as obvious as the self-built model, and the unit logistics cost is higher. At the same time, the seller will also lose control of some goods, and the service quality and efficiency are limited by partners.
3. Third-party overseas warehouses
Third-party overseas warehouses refer to overseas warehouse services provided by third-party companies. The advantage of this model is that sellers can enjoy professional cross-border logistics overall solutions, meet the needs of different platforms and customers, optimize resource allocation, and flexibly enter and exit the market. This model is suitable for sellers who do not have their own logistics system, need diversified development, and pursue convenience and efficiency.
The disadvantage of third-party overseas warehouses is that sellers need to pay service fees, and the long-term cost is high. At the same time, the seller will completely lose control of the goods and cannot guarantee the safety of the goods and the quality of service.