Those who constantly purchase goods in China or other countries and sell in the United States know that the cost of shipping by sea has grown exponentially over the past six months. Accordingly, everyone started thinking about the margin, began to calculate unit economics more competently, and ask the right questions to their carriers.
One but not the only way to reduce delivery costs to FBA is to INCREASE THE VOLUME OF IN-STOCK GOODS IN THE USA.
Obviously, the more you produce, the more you can cut unit costs.
Of course, there is a limit to everything, but the transportation of goods itself will also be cheaper, even if you have not only a consolidated shipment but also full containers. As soon as you solve these two issues, the next question is “How and where to store the goods?”Although no one wanted it, Amazon decided everything for you as soon as they introduced stock limitations.
Now everyone needs an external warehouse.
And if any prep works for small sellers, then large ones need a full-fledged 3PL.
They need a warehouse that is capable of accepting large volumes, adjusting for working with Amazon, responsibly storing goods, and delivering them to the final destination. Warehouse with WMS and reporting for the seller.
And the most important thing:
Storing goods in an external warehouse in the USA is a chance to stay away from out-of-stock.
Almost no one considers out-of-stock as a logistic cost in a unit economy, but this is pure Logistics. Poor planning of a supply chain in combination with unrealistic sales and marketing plans lead to such a mistake, and not the disruption of the ship’s exit from/to the port or a bad pickup by an affiliate.
If you are out-of-stock for even 1 day, it could cost you $1000! If you have thought about it in advance, you could store a whole container for the same amount for a month!Take care of your business and plan the supply chain wisely. In logistics something always can go wrong but having these risks predicted and stopped in advance, you will have no need to overpay for the express, argue with the forwarder about delays, or be nervous about losing money when out-of-stock.
Q4 is ahead of us.
And it is time for you to blow up Amazon with sales !!!
Focus on this, entrust the rest to professionals.