As an e-commerce seller, storage costs are one of the inevitable costs. Unlike other e-commerce platforms, Shopee makes its storage services more reliable and convenient through its own storage system. Although Shopee’s storage services are excellent, its storage costs are still a huge challenge for many sellers. So, let’s learn how to reduce Shopee’s storage prices.
1. Choose the right storage model
Shopee currently provides two storage models.
1. Stocking on behalf of others, this method is suitable for small or medium quantities of goods. Sellers send products to Shopee’s designated sites, and then Shopee stores them in its logistics center. Although this method is cheaper, its delivery time is often longer. 2. Own storage, this method is suitable for a large number of goods. Sellers directly rent storage space at designated sites, package, price, put on shelves, place orders, and operate their own stores. Although this method is faster and more efficient, it is more expensive.
2. Reasonable inventory management.
The size of storage costs is related to the quantity, type and storage time of the goods in the warehouse. Therefore, sellers can reduce storage costs by optimizing inventory management. The specific methods are as follows:
1. Strengthen sales forecasting: Sellers should make accurate sales forecasts based on sales history and other trend data to avoid too many products being piled up in the warehouse, which will lead to increased storage costs. 2. Update inventory information in a timely manner: Sellers should update inventory information in a timely manner and sell inventory as quickly as possible to make profits in a timely manner. 3. Control inventory flow: Sellers should control the in and out of inventory according to the type and flow of inventory to avoid unnecessary inventory fluctuations.
3. Increase the frequency of outbound delivery.
The longer the storage time in the warehouse, the higher the storage cost. Therefore, sellers should shorten the storage quantity in the warehouse as much as possible, increase the outbound frequency, and reduce the cost of long-term storage through regular outbound delivery. Sellers can speed up the order to avoid order timeouts and stagnation, or increase the demand for goods through sales promotions to speed up the outbound delivery.
4. Use fast delivery.
Shopee provides sellers with free express logistics services, which makes fast delivery an effective way to reduce storage costs. If sellers can ship goods in the shortest time and deliver them to customers as soon as possible, they can reduce storage time and thus storage costs. Sellers can improve delivery efficiency by using the express agency services provided by Shopee, working overtime on holidays, etc., to avoid problems such as order backlogs, urging orders and returns, and improve customer satisfaction and retention.
V. Regularly reduce inventory.
Although sales forecasting and inventory management can greatly reduce inventory backlogs and storage costs, the demand for some goods is unpredictable or difficult to predict. To avoid excessive backlogs and unnecessary storage costs, sellers can regularly reduce inventory. Sellers can use clearance discounts, promotional discounts, flash sales and other measures to sell inventory quickly and avoid high storage costs caused by excessive backlogs or long storage time.
Shopee’s storage costs are one of the inevitable costs for sellers. Sellers can reduce storage costs and improve overall sales performance and profit margins by choosing the right storage model, optimizing inventory management, increasing the frequency of outbound shipments, adopting fast delivery, and regularly reducing inventory. As a seller, only by deeply understanding Shopee’s storage price policy and formulating a storage cost reduction strategy that suits you can you succeed in the fierce e-commerce competition.