If you’re using Dianxiaomi (also known as Xiaomi Cloud Warehouse) for your order fulfillment, you need to know about the upcoming changes that will affect your bottom line. From May 1, 2025, Dianxiaomi will be changing the order processing fees. Read this now and prepare to mitigate the impact on your business.
What’s Changing?
Previously Dianxiaomi’s order processing fees were structured as follows (example, adjust to actual previous structure):
· Example Previous Fee Structure: Flat fee per order, no matter how many items in the order. Let’s say, 5 yuan per order.
But the new fee structure has a per-item component, an overage charge. Here’s the breakdown:
· New Fee Structure:
· Base fee per order (likely the same as previous flat fee). Let’s say, 5 yuan per order.
· PLUS: Overage charge of 0.25 yuan per item for each item beyond the first item in the order.
So if a customer orders multiple items in one order, you’ll be charged the base fee plus 0.25 yuan for each item after the first.
Here are a few examples to illustrate the new fee calculation:
Example 1: Single Item Order
· Order contains 1 item.
· Fee: 5 yuan (base fee) + 0 yuan (overage) = 5 yuan
· Example 2: Three Item Order
· Order contains 3 items.
· Fee: 5 yuan (base fee) + (2 items * 0.25 yuan/item) = 5 yuan + 0.5 yuan = 5.5 yuan
· Example 3: Ten Item Order
· Order contains 10 items.
· Fee: 5 yuan (base fee) + (9 items * 0.25 yuan/item) = 5 yuan + 2.25 yuan = 7.25 yuan
Why the Change?**Dianxiaomi says this change is due to the increasing complexity and resources required to process orders with multiple items. They mention the need to handle more products, packaging configurations and the labor involved in picking, packing and ensuring accurate fulfillment for these complex orders. Essentially, orders with multiple items take longer and cost more to process.
How This Affects You (Amazon Sellers)
The impact of these fee changes will vary depending on your business model and average order size.
· Small Sellers: If you mostly sell single item orders, the impact will be minimal. But even a small percentage increase in costs can add up over time, so be aware.
· Medium Sellers: If you have a mix of single and multi-item orders, you’ll see a noticeable increase in your fulfillment costs. Analyze your order history to understand the extent of the impact.
· Large Sellers: Sellers with high volume of multi-item orders will see the biggest cost increases. Proactive steps to optimize your fulfillment strategy are essential.
Here are the scenarios where costs will increase:
Bundled Product Sales: If you frequently sell product bundles, the per-item overage charge will apply to each item in the bundle (after the first).
· Customers Ordering Multiple Variations: If customers often purchase multiple variations of the same product (e.g., different colors or sizes), each variation will be counted as a separate item.
· Add-on Items: If you encourage customers to add extra items to their cart, this will increase your processing fees.
What to Do
Don’t wait until May 1st to react! Here’s how to prepare for the Dianxiaomi Cloud Warehouse fee changes:
· Review Your Order History: Download your order data from Dianxiaomi and analyze the average number of items per order. This will give you a clear picture of how the new fees will affect your business. Look closely at orders with more than one item.
· Optimize Product Listings: Consider bundling products where it makes sense to reduce the number of individual items per package. For example, instead of selling two complementary products separately, offer them as a discounted bundle.· Talk to Your Supplier: Discuss with your supplier to reduce product weight and optimize packaging. Smaller and lighter packages can still reduce overall fulfillment costs even with the new per-item fee. See if your supplier can pre-package items to minimize the number of individual units Dianxiaomi needs to handle.
· Re-evaluate Your Fulfillment Strategy: If the cost increases are significant, consider:
· Comparing prices with other 3PL providers.
· Other China-based warehouses.
· FBA prep services to streamline your process.
The Dianxiaomi Cloud Warehouse fee changes are a change in how order processing costs are calculated. By understanding the new pricing and taking proactive steps to optimize your listings, packaging and fulfillment strategy, you can minimize the impact and maintain profitability. Don’t wait – start analyzing your data and implement these strategies now!
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