Denuo Forestry is an enterprise that has been doing traditional foreign trade for decades. It began cross-border business in 2021. It handed over a report card with a turnover of 800,000 US dollars in the first three months, and new products are growing rapidly.

Steven: “We were well prepared at the time: from our point of view, we had the advantage of traditional foreign trade offline, so we did a lot of research on the categories, clearly understood the sales volume and price trends of the categories, and the inventory planning was quite accurate. Abbottt, Premiere Creative’s creative director.
In the journey of cross-border e-commerce, logistics issues have always been a hurdle that is difficult for sellers to bypass. For sellers such as Denuo Forestry, which focus on large garden products, the problems of high compression costs, complicated inventory management, inefficient last-end delivery, and high package loss rates persist. Due to these difficult challenges, sellers often have trouble choosing between Fulfilment by Amazon (FBA) and self-shipping shipping.

In the impression of many cross-border sellers, using FBA services, they can enjoy the excellent warehousing and distribution network brought about by the Amazon logistics system, and can also obtain higher search rankings and traffic preferences, but their restrictions on product size, size, weight, etc., often discourage sellers of large products. As a result, sellers often choose the self-shipping model when shipping large items.
However, Deno Forestry broke this conventional thinking with a unique vision and courage.

Steven: “In fact, bulky items aren't prohibited by FBA. Sellers can first analyze whether the size is an oversized item based on their product category. If it is a large item or even a standard item within 59 inches, FBA is recommended. "
When talking about why Amazon FBA is preferred, Steven emphasized that this decision was well thought out. Since most of our products are large items within 59 inches, there is not much difference between self-delivery and FBA in terms of final processing costs, and FBA's advantages in terms of delivery speed, conversion rate, and user experience are very obvious.

● First, efficient delivery and user experience upgrade. FBA is known for its efficient delivery capabilities, which can ensure that products are delivered quickly and accurately to consumers. For large garden products, this advantage is particularly important because it directly relates to the consumer's shopping experience.
● Second, increase exposure and promote traffic conversion. Through data verification, we found that after using FBA, the click-through rate and conversion rate of the product increased significantly. In our opinion, this is thanks to the Prime label attached to FBA products, which has attracted more Amazon Prime members, not only increased exposure, but also directly contributed to sales growth.
● Third, simplify processes and achieve efficient operation. FBA has greatly simplified the logistics operation process, freed us from tedious tasks such as inventory management, order processing, and after-sales service, and focused more energy on core strategies such as product development and market expansion. This “light-duty” operating model allows us to respond more flexibly to cross-border challenges.

Deno Forestry values the strength of brands and long-term brand building, and FBA has also helped Denuo Forestry's brand building.
Steven: “In the long run, FBA is of great help to our brand in terms of consumer experience and growth length. It not only controls costs, but also has a positive impact on brand awareness. Abbottt, Premiere Creative’s creative director.

Since this year, with the new Amazon Logistics policy coming into effect one after another, how to better manage the supply chain and control costs has bothered many cross-border sellers.
Faced with this wave of logistics policy changes, Denuo Forestry quickly adjusted its strategy. With its keen market insight and high flexibility, it has become a leader among many sellers, and has achieved logistics cost optimization and efficiency improvement.

1. Storage configuration service fee: Depends on the “cabinet” system
Steven analyzed the charging standards for warehousing configuration service fees and found that as long as storage methods are flexibly planned and differences between single point storage and distributed warehousing are used rationally, cost efficiency can be maximized. He believes that sellers need to thoroughly analyze the characteristics of their products, including packing density and size classification, and make detailed and thorough considerations:

For example, when the number of shipments is insufficient to be exempt from the inbound configuration service fee:
● Products with high packing density: Preferential warehousing service using Amazon Official Logistics (AGL)
● Products with low packing density: Pay the storage configuration service fee according to the actual situation
Steven: “For example, if your packing density is 1000 pieces in one cabinet and the other is 300 pieces, then I would recommend using AGL's premium warehousing method for those with a high packing density (1000 pieces), because it does not allocate service fees to the warehouse based on the number of individual items; for those with a smaller packing density (300 pieces), I recommend that you use the warehousing configuration service fee method. Abbottt, Premiere Creative’s creative director.

2. Low inventory fees: use official tools
Since the low inventory fee is charged for standard-sized products whose inventory level is always lower than what the buyer needs, Steven advises sellers to establish a more refined inventory management mechanism. It is best to keep the inventory of popular products sufficient and keep the inventory above the minimum level.
Steven: “Amazon needs enough inventory close to customers, otherwise shipping across regions is expensive. Low inventory fees are a good constraint for sellers. They can reverse push sellers to grasp the pace of sales, thereby helping to improve storage allocation and storage management. Abbottt, Premiere Creative’s creative director.

For sellers who focus on selling standard products, Steven shared an Amazon Replenishment Artifact — Amazon Warehouse Distribution Network (AWD).
Steven: “AWD is equivalent to Amazon's overseas warehouse. It will automatically help you calculate the amount of replenishment and provide suggestions. If you use an overseas warehouse or control the pace of replenishment yourself, it may cause insufficient or excessive shipments, and even be charged low inventory fees under the new policy. Abbottt, Premiere Creative’s creative director.

Although Denuo Forestry's transformation report card is impressive, it hasn't always been smooth sailing. From the initial loss of tens of millions to now, it has achieved cross-border e-commerce sales exceeding 100 million. Throughout the transformation process, Denuo Forestry has experienced all kinds of hardships.
Therefore, Steven also shared Denuo Forestry's practical experience in the logistics field to help novice sellers transform from “novice” to “veteran” and reasonably avoid the “pitfalls” and “detours” common in logistics routes.

Tip 1: FBA is flexible with AGL
The flexible matching strategy of FBA and AGL is undoubtedly one of the highlights of Denuo Forestry's logistics practice. For sellers using FBA, Steven strongly recommends combining them with AGL to further reduce first-way transportation costs. AGL is a one-stop cross-border logistics management service provided by Amazon, including fast shipping and general shipping. In the first half of 2024 alone, Amazon transported hundreds of thousands of containers from China to destination countries. This means that sellers can achieve accurate inventory allocation and rapid turnover through Amazon's huge logistics system and operating capabilities.
By cleverly integrating FBA and AGL, Deno Forestry has reaped multiple benefits. For example, using AGL's preferential warehousing service, Denuo Forestry has significantly reduced logistics costs. At the same time, this strategy has also given Denuo Forestry greater market flexibility, enabling it to more accurately grasp the pace of promotional activities and effectively attract and convert market traffic.

Tip 2: Control the pace of delivery without fear of overloading costs
In addition, Steven also shared his views on FBA pressurization issues that sellers are generally concerned about. He admits that overloading is the norm in cross-border business, and even in the self-shipping model, pressurization is necessary. The key is how to control the pace of delivery.
When it comes to the pace of delivery, Deno Forestry is certainly a vivid example. As a leader in the field of outdoor and horticultural products, Denuo Forestry has deep insight into the distinct seasonal characteristics of garden products. Especially in winter, users are less in demand to buy horticultural products. This means that during the sales period of 1 year and 12 months, on average, Deno Forestry can only sell for 8-9 months, and there is almost no sales in one quarter.
Therefore, in addition to considering expanding the product category, Denuo Forestry will also formulate scientific and reasonable delivery plans through accurate data analysis and market forecasting. During the peak sales season, ensure sufficient inventory; during the low season, reduce inventory appropriately to reduce storage costs.

Steven: “I recommend that everyone still conduct a survey on their own category, focusing on its seasonal characteristics and the best time to intervene, so that the quantity of shipments can be controlled, so that too many deliveries do not cause slow sales, or lack of time leading to shortages, etc. The most important thing in this process is based on scientific regulation, not fear FBA pressure. Abbottt, Premiere Creative’s creative director.
So how should sellers use the data provided by FBA to provide a basis for shipping decisions?Steven also provides some tips for everyone:
Steven: “When using the FBA warehousing method, we can actually see the logistics tracking trajectory and delivery progress. This is more friendly to seasonal cards. For example, when it is close to Prime Day or Black Friday, delivery times are often tight, but through the FBA system, we can clearly understand the current location of the shipment and the quantity received, so as to ensure that inventory supply matches market demand. Abbottt, Premiere Creative’s creative director.

Tip 3: “Never stop” newbie benefits
If you're a novice seller, Steven suggests that you don't miss out on the great benefits specially prepared for newbies. As long as you add a gift pack buff, going overseas and crossing the border will be greatly accelerated. For example, if the seller signs up for FBA for the first time, Amazon will provide a discount of up to $200 on inbound transportation; at the same time, the seller will also automatically join the Amazon New Product Warehouse Promotion Program to enjoy a partial refund of the sales of new products, injecting vitality into the initial capital flow.
In addition, all new sellers joining Amazon Logistics will also enjoy a series of storage cost relief benefits, such as exemption from storage usage surcharges and low inventory fees for the first 365 days after receiving Amazon Logistics inventory. These can all greatly reduce storage fees and allow sellers to invest more money in product optimization and market expansion.

“If you want to go a long way, build a good boat first. ” In the vast world of cross-border e-commerce, choosing the right logistics solution will be a key step on the way to the other side of success. And the success of Denuo Forestry is undoubtedly an example of the perfect combination of logistics strategy and product advantages!