Announcement: Analysis on the logistics and warehousing situation of retail OEM customers

Announcement: Analysis on the logistics and warehousing situation of retail OEM customers

U.S. FTW1 and IND9 have been severely liquidated, FBA restricted warehousing, FedEx stopped accepting Amazon goods, and air sent and Haipai prices have risen across the board… After experiencing the profound lessons of the early epidemic, many sellers have taken precautions. With the arrival of the peak season, a large number of sales began Stock up in overseas warehouses in case of unexpected needs. Insiders predict that the next September-October cross-border logistics will usher in a peak and a real price increase.

At present, the epidemic is still being blessed, and local strikes and riots occur from time to time overseas. In the face of the peak season in the second half of the year, how should cross-border e-commerce sellers make stocking and logistics plans?

Amazon’s warehouse limit has destroyed the seller’s stocking plan, and the demand for third-party overseas warehouses has skyrocketed

“In recent years, the development of overseas warehouses is inseparable from the rise of localized platforms and the enhancement of their requirements for localized services. The flexibility, convenience and service requirements of localized platforms for overseas warehouses are currently the choice of most cross-border sellers. “An important reason for this,” said Zach, head of Tianyun’s cross-border logistics.

He further analyzed that, on the one hand, Amazon’s inventory limit has affected most sellers’ stocking plans, so there are two main mainstream solutions: 1. Consider using international express to quickly replenish small products, such as UPS red orders or DHL. Due to the epidemic situation so far, the price of air freight has been high. Under the same timeliness, international express has a prominent advantage; second, large-scale products are transferred in overseas warehouses. Store goods through third-party overseas warehouses, and replenish them to FBA in batches according to sales conditions, avoiding the impact of warehouse restrictions and facilitating inventory performance control.

On the other hand, during the epidemic, with the exception of the Amazon platform, the traffic on other local platforms has increased by multiples, creating a large number of sellers and attracting more new sellers to settle in. And the biggest feature of these local platforms is that they need to use local overseas warehouses to process orders more efficiently and quickly end-of-line timeliness, as well as local return processing.

Since the epidemic, the international express business, overseas warehouse transfer and drop shipping business of Tianyun’s cross-border logistics have also confirmed these two aspects. It is understood that during the epidemic, the overall consumption habits of Europe and the United States have shifted to online, which has greatly promoted the growth of cross-border e-commerce sellers. Since the outbreak of the epidemic, Tianyun’s overseas warehouse business has increased by more than 300%, and it is mainly concentrated in three services, dropshipping, FBA transfer, and return and exchange. The United States’ slow-moving inventory processing business has also multiplied.

September-October is expected to usher in the peak period of price increases. How does Amazon Prime Day prepare the stock plan?

Due to Amazon FBA’s warehouse explosion, the platform had to increase its IPI performance score and restrict warehousing to control the volume of goods. Many sellers targeted third-party overseas warehouse transfers. On the one hand, it can replenish the goods in time to prevent the listing weight from falling; on the other hand, when encountering problems such as returns, the sellers can also save some expenses by transferring them to other accounts for sale. learned that recently, sellers have indicated that they have received email notifications from Amazon’s US site Prime Day. According to the notice, the time for the Prime Day promotion at the US station will be scheduled from October 7th to November 3rd, 2020, lasting nearly a month. Although Amazon has not officially announced the time of the Prime Day promotion, sellers continue to pay attention to this matter, and occasional “travel” news appears.

If the seller said, the Prime Day promotion will be postponed until October, plus the peak sales season in the fourth quarter. Then, sellers’ demand for logistics and overseas warehouses is bound to increase substantially. Zach predicts that shipping companies and airlines will definitely increase prices by then. “The peak season, coupled with the impact of the epidemic and other factors, has led to a shortage of manpower in foreign terminals, which affects the timeliness of customs clearance; the manpower of the last express delivery is also in short supply, and the timeliness of handling in the warehouse is slow. More cost to control the timeliness, so September-October is expected to usher in the peak period of price increases.” He analyzed.

But at present, according to the new Amazon inventory performance score rules, in the peak season in the fourth quarter, some sellers who do not meet the score will be restricted to replenishment. Zach suggests that sellers can use long-term channels and overseas warehouses to stock up and transfer to improve replenishment efficiency. , To reduce product out-of-stocks and on-sale redundancy issues, to more quickly improve inventory performance scores, to avoid restricted restocking in the fourth quarter, which affects sales.

Post time: Dec-08-2021