FBA or Order Fulfillment Company, Which One is Better for the Q4 Holiday Season?

Recently, Amazon has taken many measures for logistics and transportation issues(recruiting more warehouse employees, ordering electric delivery vehicles, and building distribution centers to deal with the upcoming shopping season). It seems that they are trying to get ahead of some of the issues faced at the start of the COVID-19 pandemic.

On the one hand, supply chains have been greatly impacted, with fulfillment centers prioritizing certain products over others and many overseas inventory orders taking longer than usual to fulfill. On the other hand, consumers are buying online now more than ever.

However, according to data at 8 o’clock on September 21, the cumulative number of confirmed cases of COVID-19 in the United States has exceeded 7 million. The continuation of the epidemic and fire has made the logistics and delivery of the United States very unstable.

At present, US imports from China have increased by 89% year-on-year. This is when e-commerce sellers are stocking a lot. Therefore, some warehouses can no longer withstand the pressure, making appointments more difficult, and product information updates are very slow. Therefore, it is necessary to choose an order fulfillment center that processes shipments faster.

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According to some feedback, the most serious Amazon warehouses are CLT2, FTW1, AVP1, SMF3, and MEM1 while the more controversial warehouses are ABE8, LAX9, MDW2.

It is worth mentioning that CLT2 is the warehouse with the most serious feedback from Amazon sellers. Some sellers finished the shipment in early July and have not been fully received today.

Amazon customer service also said that there are a lot of backlogs in the warehouse, and there is no way to urge the warehouse to receive the goods on the shelves, because the warehouse receives a large number of shipments every day. If it can be urged, the warehouse’s receiving process will be slower and more complicated. Therefore, the warehouse does not accept any kind of urge, which made so many sellers choose the order fulfillment center.

Since Q4 is already one of busiest sales seasons, the ecommerce giant wants to help protect its business from issues like these. 5 professional and experienced teams have been formed in ChinaDivision for better service in the future.

Contact us and you can benefit more in the e-commerce market!

Suggestions on Controlling Fulfillment Warehouse Loss Rate

What is the utilization rate of the warehouse to prove the strength of an e-commerce order fulfillment center? In a sense, it covers the control of loss rate, the lower the loss rate is, the better the utilization rate will be. Nevertheless, the turnover rate of goods in the e-commerce warehouse is quite high, and there will be losses in the process of turnover and movement. What’s worse, it is difficult to predict where these losses will occur, how many losses will occur, whether they will be registered timely, what causes it, and the most important question is how to effectively control the rate of loss of inventory.

The following aspects will tell you how ChinaDivision carry out this work:

  • List Loss Points

All warehouse staff will participate in the discussion, starting with the process of e-commerce warehouse management, studying which operations are easy to cause the loss of goods, and recording these possible problems timely. Second, we need to count historical data, classify according to the cause of loss, and see how much loss is caused by each loss point. To determine the percentage of each loss that accounts for the overall loss of the e-commerce warehousing.

  • Set the Standard for Los

According to the data, ChinaDivision will calculate the loss value and percentage of the loss point to determine the loss standard and determine how much the loss standard should be kept. Zero loss is always just an idealized number. In reality, there is no such zero loss situation. 3pl fulfilment It is better to work out a more reasonable control target at a time and gradually improve it. Besides, the loss prevention standards mainly  referred to  two aspects, one is the target value, and the other is the loss prevention operation standard, which is used to regulate the staff in the e-commerce cloud storage in order to control within the target loss value operational requirements.

  • Record Data Timely

It is not for the operator to clarify the target value of the loss to be controlled, to receive training to understand how to prevent loss, and the loss will naturally fall below the target. It is necessary to record and account for the loss of the operation. In some places where management is not standardized, there are certain hidden rules, such as underreporting of losses, concealment, or staring at target values. These actions will affect the timely search for the cause of the loss, and then take effective measures to reduce subsequent occurrences. We have formulated the rules for accurate accounting. The loss is classified according to the reason for loss and scrap in the finance. When the reason is more general, the specific loss point is written in the remarks, which is convenient for the next round of combing and reducing the entire warehouse management. There must be a mechanism for inspection, supervision, and assessment, and actions that are not properly accounted for should be dealt with and punished in a timely manner.

Only by sorting out these loss issues, determining specific loss standards, and confirming the data in time, can the loss be controlled within the target range, so both the drop shippers and their customers can benefit a lot.

What will Happen to Drop Shipping in the Future?

Over the past decade, many Chinese drop shipping agents had embraced incredible success on account of lower shipping costs and better capability. Unfortunately, COVID-19 had a ripple effect on drop shipping agent and cross-border e-commerce companies, which caused a heated discussion about what will happen to the drop shipping business in the future.

Back to 2018, American President Trump announced that the United States was pulling out of the intergovernmental body called the Universal Postal Union after claiming that China has been taking advantage of the US. One year later, UPU announced that it reached a deal with the US and it approved President Trump’s request to collect higher fees on packages from international destinations. The agreement will go into effect on July 1, 2020 and American sellers can expect significantly hiked prices on their products. Basically, ePacket, a shipping option offered by Chinese and Hongkong merchants when shopping on popular Chinese marketplaces like Aliexpress, will no longer be price competitive and many American independent sellers will, if not go out of business, dramatically lose revenue.

But it is a fact that China is the world’s largest manufacturing country and a titan in the global exporting industry. According to statistics, China had assisted over 18 countries in the work of epidemic (South Korea, Italy, Japan, Iran, Pakistan, etc). Apart from sending medical teams, China also donated $20 million to the WHO, as well as masks, medicines, protective suits and other epidemic prevention materials to relevant countries. From the data, we can figure out the capability of Chinese Government, and so do the drop shippers. The local quarantine agency said Chinese outbreak appeared to be well contained, so there will be adequate staff in the order fulfillment center to achieve fast warehousing, packing and shipping.

In brief, Chinese drop shipping is the trend of e-commerce in the future, your business can be booming with the help of drop shipping agency.

What factors need to be considered in the choice of warehousing outsourcing?

Nowadays, many e-commerce sellers prefer order fulfillment center, but what factors need to be considered when choosing your new warehousing partner? Here we have listed some major factors for your reference.

  • Charging Standard

The charge standard of fulfillment center can be divided into two categories:

The first category is to carry out the charging standard according to the actual operation volume (warehouse receiving, delivery, storage, return, etc.). And the other type is based on the cost of resource consumption and development contract (the total area of the application warehouse, the total number of staff, equipment depreciation, consumables, etc.)

  • Process Control and Management Data

It is necessary to carefully investigate the process optimization documents of your potential warehousing partner to evaluate its standardization and work ability. For example, you can obtain a general idea of them through website visiting. You can also pretend to be a new customer to test them. Generally speaking, the will show you some files about their enterprise profile and fulfillment performance, which cover their process control and management methods.

  • Execution Capabilities

In addition to the marketing plan, the execution ability is also a very critical part. It is necessary to fully grasp the work flow of third-party warehouse and outsourcing enterprises, especially the steps at the level of purchase, marketing, accounting supervision, etc. A qualified warehouse should work out the practical plan.

  • Humanized Marketing Plan

Customized business planning of a Chinese order fulfillment center is an indelible aid. You can evaluate its professional skills and value according to their marketing plan. Furthermore, a fulfillment center with strong market sensitivity will create a more valuable plan, which means they can provide more benefits for you.

In a nutshell, China fulfillment services is appreciated by more and more e-commerce companies, especially the Amazon and Shopify seller. Therefore, detailed investigation is a wise choice for everybody who wants to find an ideal expert of drop shipping, packing, china sourcing, third party logistics, etc.

Three Reasons of Fulfillment Centers Start a Business in Shenzhen

As a cross-border e-commerce entrepreneur, you will be surrounded by many choices when finding the warehouse address. However, you will take many detours on the way to your cheapest fulfillment service. What’s worse, some Amazon sellers have been very confused about global ecommerce fulfillment owing to the Amazon warehouse fire and COVID-19.

To tell you the truth, Shenzhen warehouse plays an inportant role in the international orfer fulfillment. A latest study concerning Chinese warehouse location indicated that 75% warehouses come from Shenzhen. Here we have summarized three reasons as shown below:

As you can check in Google Maps, Shenzhen is near the international parcel processing centre——Hongkong, which provides more convenience for picking, packing and shipping. Take Amazon ePacket tracking as an example, Shenzhen warehouse can sent the items directly if your customer has ordered successfully from your webstore. That is to say, you don’t need to manage your own warehouse or distribution center.

Shenzhen is the birthplace of China’s reform and opening up, where many foreign trade enterprises and drop-shippers had been created. So they have more experience in the field of warehousing and shipping for e-commerce, and it is hard to find disorderly shipping and wrong delivery. In this way, you can reduce business risk and increase customer satisfacton.

During COVID-19 pandemic, the majority of e-commerce sellers want continuous selling on AliExpress, eBay and Amazon. Therefore, it is essential to reduce the chance of infection with COVID-19, whether it is warehouse or transportation staff. The number of people diagnosed in Shenzhen is cleared on May 21. Additionally, the government insists on strict pandemic prevention work, requiring everyone in Shenzhen to measure body temperature every day, especially warehouses and catering staff, mask wearing and hand washing are indispensable work.

All in all, you can get a fully automated with less money and time if you choose the most suitable order fulfillment center, and Shenzhen is a competitive choice.

What You Are Relying on, is Our Specialty

Companies partner with us to streamline their fulfillment needs, maximize their customer satisfaction and drive the next business growth.
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From a technology perspective, the 3PL landscape is evolving. Historically, 3PLs could compete by supporting and operating a facility that leveraged their clients’ warehouse management system (WMS). Today they are expected to offer not just the operational expertise, but also the building, multiple WMS solutions, and technology that offers their clients’ a competitive advantage–a turnkey solution with appurtenance. This shifting landscape forces many 3PLs to operate both internally and externally owned WMS solutions and manage both digital and paper-based documentation in response to their clients’ vastly differing needs. Forming the new paradigm are demands for API based integration services, flexible rapid deployment WMS solutions at multiple price points, automation and labor reduction through disruptive technology, and complementary supply chain products that digitize the supply chain–all of which must be scalable and supportable on a global playing field. As the number of systems 3PLs are required to offer clients, and ultimately support, grows, so does their clients’ desire for real-time visibility to data and information about their product and service levels. This is causing 3PLs to take a closer look at complementary software that can be deployed across a myriad of systems, within their network, in order to consolidate the disparate data and documentation while providing different slices of that information to the diverse set of interested person as.

Chinadivision is now conducting a 3PL innovation, new customers and regular customers has benefited from our expending.

You expection is our goal, and by achiving this common goal, we strengthed our business relationship.

Customer Retention: Repeat Purchase Campaign

Want to strat a business, and gather those share the same idea with you?

Not all customers are alike. Even if all of them have one thing in common—the fact they bought from you—that doesn’t mean you should treat them the same way. If you treat all your customers the same way, you’re likely to send them irrelevant emails, making them less interested in becoming loyal customers.

Tell your repeat purchasers, which are your caring listener, your stories about the founding of the business, or the coupon for them to continue the buying from you.

How do you extract more out of an existing customer? According to Adobe’s recent study, existing customers are responsible for creating 40% of revenue for an ECommerce store. Acquiring a new customer will be 5 times more expensive than getting a conversion from an existing one. However, increasing customer retention rate in the e-commerce industry by 5% can increase your profitability from 25% to 95%!

Your existing customers are familiar with your brand and your product, which makes them theoretically easier to convert compared to acquiring a new customer. Based on certain triggers derived from user behavior, you can create tailored campaigns with an incentive that will drive up the perceived value of the offer.

Unless the geography or demographics of your customers affect your e-commerce sales, one of the best ways to segment your customer list is by using engagement and transactional attributes based on their past behavior.

3 Signals on Cross-border E-commerce Seen from the CIIE

On November 5, the second China International Import Expo (CIIE) opened in Shanghai. According to the data, more than 3000 enterprises from more than 150 countries and regions participated in the exhibition, and the number of participating countries and enterprises exceeded the first one. Meanwhile, T-Mall Global, Jingdong Global, VipShop International, Koala Haigou, Suning Global Outsourcing, Beibei, Yunji, Meidun Mom and other cross-border importer and e-commerce platforms have appeared in the Expo.

According to the monitoring of e-commerce large database, in 2018, the transaction scale of import cross-border e-commerce industry reached 1900 billion yuan (including B2B, B2C, C2C and o2o modes), an increases of 26.66% year on year. Since 2001, the transaction scale of import cross-border e-commerce industry has maintained continuous growth.

Release positive signals for cross-border e-commerce

The second China international cross-border e-commerce development summit, and the Cross-border E-commerce promotion trade development summit will be held during the Expo. Cross-border e-commerce has become a powerful growth point for the development of China’s foreign trade. With the introduction of the e-commerce law and new policies on cross-border e-commerce, the gradually expanded scope of application of import policies, and the continuous increase of domestic demand, cross-border e-commerce will usher in a new round of quality improvement and upgrading.

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Editor of Chinadivision found, at least 3 signals can be seen from the summits.

Signal 1: many international brands take Chinese cross-border e-commerce enterprises as a bridge to enter China, strengthen international resource cooperation, and give play to the advantages of local industrial clusters.

Signal 2: domestic cross-border e-commerce platforms seek new opportunities for cooperation, promote transnational cooperation and bring more trade opportunities.

Signal 3: accelerate the development of cross-border import market to meet diversified consumer demand.