E-Commerce Logistics Strategy
For e-commerce, we have several logistics choices. One is self-shipment, which includes domestic self-shipment and local warehouse self-shipment. On the other hand, FB shipment includes FB's commercial express, as well as the choice of air, special line, and sea transportation.
It is very important for us to choose these methods and how we should match them in the actual process, so that we can effectively save time and money at the same time. Because in the operation, we must form a concept. In fact, no matter which platform, no matter how high the profit margin we hear from others, we must consider cost control in such a proportion of the profit margin. Although there is such a high-profit margin, it is not that the cost can be arbitrarily controlled without any risk control, right? We should do two things in the process of operation: open source and throttling.
Open source naturally means that we can have more sales performance for the time being. This is called the open-source aspect. In the connection aspect, we should reduce various costs, including the cost of the goods themselves, the cost of logistics, and other miscellaneous costs, including the monthly traffic fee of YiLu Proxy
residential IP, and so on. The reduction of other costs and how we can improve performance through open source, We will explain it later in the course. Today I want to talk about how to reduce logistics costs. For a better understanding, let me give you an example. Suppose you have 5000 goods to ship today. What is the situation of these 5000 goods? It is a reservation, that is, you want to sell the goods for two months, or you have bought the goods for one month. In short, time is under your own control. In this case, let's consider the delivery method of these 5000 pieces of goods. Of course, you can choose all air transportation, all express delivery, or even all sea transportation, but what will be the impact of these three ways? If you choose to use commercial express delivery, the time limit is acceptable and the speed is fast. But don't forget that the unit freight of commercial express is very expensive, which means you need to pay high freight costs. If you choose an intermediate way, such as air transportation, it can also be used. But air transport also has another impact. For example, it takes 10 to 15 days for air transportation, which is much slower than 3 to 5 days for express delivery. If we calculate by 5 days, it means that you can start selling after 5 days.
It takes 10 to 15 days by air, that is, you can arrive within 10 days, which means you have wasted 5 days, because your goods haven't arrived at the FBA warehouse in these 5 days, so you can't sell them. Some sellers may say that they must choose the lowest freight cost. However, the shipping time is about 40 days, which means that you can't sell for 40 days. Did you float the goods at sea for more than a month? This is also a waste of time. To avoid this situation, we should not only ensure that our freight costs are low, but also ensure that our sales time is effectively utilized. Therefore, I suggest you divide this kind of goods into several batches for shipment. Take 5000 products as an example. Suppose that these 5000 products are very small. For example, 5000 screws are sold, only 5 kg in total. Of course, we do not consider this situation here. We are discussing the normal situation.
Your 5000 products are satisfied with all kinds of weight and volume. Such a standard is good. I can split it like this. For example, I send 200 by express, 200 by commercial express, 200 by commercial express, and 500 by special line. How much did I send at this time? 700 products were issued. At the same time, I send the remaining 4000 products or 4300 products by sea.
In this case, why should we ship in this way? The reason is very simple. Suppose I send 200 products, and they can arrive at the warehouse within 5 days and be accepted by warehouse a. So I can start selling in 5 days. Suppose that my products are in the process of the sale, that is, these 200 products can let me sell for about a week. This means that when my 200 products are almost sold out, the 500 products of the air special line behind me also just arrived at warehouse b. At this time, I can continue to sell. The quantity of 500 products received by warehouse b can also be 800, which is up to you. After the arrival of these 500 products, the sales time that can be supported is about 10 to 20 days, or even 20 to 30 days, depending on your own arrangements. When the products of your air transport line are sold out, your marine products will also arrive. Of course, you can also split the remaining 4300 products into 1500 pieces of shipping express and the rest of ordinary shipping to further reduce costs. In this way, you will find that it not only ensures your quickest time, but also ensures your quickest entry into sales, and also ensures that your FB warehouse is always in stock, enabling you to operate normally. Finally, we can guarantee that your costs will be reduced as much as possible and every penny you save. Last but not least, it will be reflected in your profit margin.
In the e-commerce industry, although the Amazon platform still has a lot of room for development and still has a high-profit margin, don't forget that there is competition and marketization on this platform, which means that consumers will give priority to the products with the highest cost performance. So, what aspects of collocation can make the product cost-effective? In addition to product quality, the unit price of the product is also a very important factor. In the process of operation, it is very important to reduce product costs and reflect these reduced costs in the sales price of products, which will greatly affect your success in operation.Many sellers sometimes split the price of a product into four parts: the cost of taking the goods, the cost of shipping, and the commission and profit of the platform. There are about four parts, each of which accounts for a quarter. You can imagine that if you can reduce the logistics cost from one quarter to one-fifth, or even to one-sixth, your profit margin will increase significantly. In the process of operation, we must learn to comprehensively consider various factors and combine them.
Such a large proportion of logistics costs means that we should grasp our logistics costs as well as possible. A combination of logistics delivery methods can minimize our logistics costs as much as possible.