Q1: How much is suitable for overseas warehouse stocking?

A: Many sellers are concerned about stocking up. The core is to calculate the "safety stock" and "replenishment cycle".

Safety stock=Average daily sales x (procurement cycle+logistics cycle+stocking cycle) x 1.2 (safety factor)

Replenishment cycle=domestic procurement time+first leg transportation time+overseas warehouse shelving time

Simply put, prepare for 2-3 months during peak seasons and 1-1.5 months during off peak seasons. The more inventory, the better. The storage fees and capital occupation caused by unsold goods are often greater than the losses caused by stockouts.

Q2: How much of the first batch of goods will be sent to the overseas warehouse?

A: For the first time stocking, it is recommended to test the payment first and not be too greedy. You can do it this way:

① First send 500-1000 pieces for water testing (depending on the unit price of the product)

② Observe for 2-4 weeks to see the turnover rate, conversion rate, and return rate

③ Batch restocking after stable data

Blindly stocking up in large quantities, once the selection fails, storage and handling fees may be higher than the value of the goods.

Q3: How often is the inventory turnover of overseas warehouses considered healthy?

A: Inventory turnover rate is one of the core indicators for overseas warehouse operations.

① Clothing and fast-moving consumer goods: 2-3 monthly turnover (i.e. 2-3 rounds of short selling of inventory per month)

② 3C, Home Furnishings: Monthly turnover 1-1.5 times

③ Large items and high unit price: quarterly turnover once

If your inventory turnover is below the industry average, it is recommended to check if it is a selection issue? Is the pricing too high? Did you not keep up with the promotion? Or is there too much inventory?

Q4: Should we choose sea freight or air freight for the first leg of transportation?

A: It depends on your stocking pace and cash flow pressure.

① Clothing and fast-moving consumer goods: 2-3 monthly turnover (i.e. 2-3 rounds of short selling of inventory per month)

② 3C, Home Furnishings: Monthly turnover 1-1.5 times

③ Large items and high unit price: quarterly turnover once

If your inventory turnover is below the industry average, it is recommended to check if it is a selection issue? Is the pricing too high? Did you not keep up with the promotion? Or is there too much inventory?

Q5: How to judge whether the overseas warehouse service is good or not?

A: In addition to price, these indicators are more worthy of attention:

① Shelf life: After the goods arrive at the warehouse, how long can they be stored for sale? The standard is within 48 hours, and the fastest can achieve 24 hours.

② Inventory accuracy: The deviation between system inventory and actual inventory is only considered qualified if it is above 99.5%.

③ Delivery timeliness rate: After the order is placed, how long does it take to complete the outbound process? T+0 (same day outbound) is an excellent standard.

④ Return processing capability: Can we handle returns? What is the regeneration rate for returned items?

⑤ System integration capability: Can it be integrated with your ERP? Is the trajectory transmitted in real-time?

Asking these points clearly is much more reliable than just the price.