For Amazon in Europe, FBA is the preferred freight logistics method for many sellers. Since its inception, FBA has always been a very important competitive advantage. FBA has undergone many key adjustments, and FBA's standardization, standardization, light and small objects, and destocking are also the main development prospects of FBA.
Destocking in it has caused many sellers to have a headache. The goods cannot be sold. The goods left in the FBA warehouse have to be deducted for huge expenses, and the cost of shipping home is higher. The import tariff alone has long been prohibitive. Therefore, Many sellers destroy them immediately for better convenience, but the pitfall is that they also need to pay for the destruction.
For sellers, FBA’s most important cut is VAT in Europe. The occurrence of VAT has undoubtedly raised a lot of costs for sellers, deducting 20% ??of import tariffs, and solving various costs such as VAT. It is very likely. The increased cost will be around 24%, and the wool is on the sheep, forcing the seller to graft all the cost to the customer, and the increase in price will reduce the competitiveness.
To destock and reduce VAT, in fact, direct mail is a good choice. Direct mail has natural advantages:
1. Direct mail can assist in product selection: It doesn’t matter whether you choose from statistical analysis or specific sales market trends, but those are what we feel. In fact, is the sales market suitable and whether the customer approves it? Only after trying it, I know that direct mail does not require a lot of replenishment, and the overall planning and ordering are based on the specific sales volume. This is a valuable reference data information for the seller.
2. Direct mail can basically guarantee zero inventory: as the saying goes, if you don’t replenish the goods, it’s money. The convenience of direct mail is pure and natural, only a small amount of inventory must be prepared, and if it is close to Shenzhen Huaqiangbei. In the region, if the goods are required, they will go to the sales market to collect them, and I will send them again when I get them back. This basically guarantees zero inventory
3. Only VAT can be prevented: VAT requires that import duties be deducted only above 22 euros. Therefore, equipment with a product value less than 22 euros can effectively prevent VAT, reduce product costs, and increase profitability.
After a lot of nagging, many companies on the market now refer to direct mail as dedicated line transportation or dedicated line, just like the European dedicated line transportation and the European dedicated line that are successfully accessible are direct mail.