Who it fits
Stable daily-order sellers
How to use it
Use this when direct-shipping orders are becoming stable and you are considering an overseas warehouse. It compares daily orders, storage, pick-pack, last mile, and return cost in one monthly model.
- Enter average daily orders and direct-shipping unit cost.
- Add warehouse pick-pack, last-mile, monthly storage, return rate, and return handling cost.
- Compare monthly and unit costs for direct shipping versus warehousing.
- If costs are close, factor in delivery speed, return experience, and inventory risk.
Checks before using
- Order volume can absorb storage cost
- Inventory turnover and dead-stock risk are manageable
- Warehouse supports target countries and returns
- Compensation, inbound, aging, and surcharge rules are clear
Calculation and evaluation basis
Monthly orders = daily orders*30. Direct cost = monthly orders*direct rate. Warehouse cost = monthly orders*(pick-pack+last mile+return rate*handling)+storage. Break-even daily volume = storage/(direct rate-warehouse variable unit cost)/30, only if variable cost is lower. Zero volume has no unit cost. Inbound freight, inventory financing and dead stock are excluded.
These notes support a first-pass decision. Before buying software, scaling ads, shipping goods, or handling tax matters, verify against platform dashboards, service contracts, official pricing pages, and professional advice.
Limits and assumptions
- Assumes a 30-day month and stable daily volume; no sales forecast
- Inbound freight, inventory financing, dead stock, receiving and aging fees are excluded
- Compares your inputs only, not warehouse locations, provider quality or contracts
Highlights
- Estimates the break-even point for warehousing
- Separates storage, pick-pack, last-mile, and returns
- Useful before contacting warehouse providers