Orders fell to the lowest level of the year! Overseas consumption trends have changed

Orders fell to the lowest level of the year! Overseas consumption trends have changed

After the epidemic, the cross-border e-commerce industry did not recover quickly, but instead experienced a "late spring cold snap".

 

Recently, many cross-border sellers have reported that orders have dropped sharply, sales have been lower than expected, and the return rate has risen sharply. After the first quarter, some sellers have stopped recruiting and expansion because their actual performance has deviated from the target.

 

Inflation and other factors have made consumers tighten their purse strings. Only by understanding the current new consumption trends and buyers’ shopping psychology can sellers be more targeted in product selection and marketing.

 

Sales volume declines, cross-border industry encounters "late spring cold"

 

Since the beginning of this year, the industry has been reporting a decline in orders. Around Easter, cross-border orders dropped to a freezing point, with some sellers saying that holiday orders were the "lowest of the year."

 

To make matters worse, the number of returns has also surged. One seller said: "What is more touching than the sluggish sales is the return rate. According to rough statistics, the return rate of the main SKUs reached 20% last month." Another seller felt the same way and said frankly that "the return rate is shocking."

 

In this context, it is difficult for sellers to draw a good performance curve. One seller revealed that he set growth and personnel targets at the beginning of the year, but after three months in the first quarter, he has basically stopped recruiting. A seller in East China compared the sales volume in the first three months of this year with that of last year, and found that orders had begun to rise steadily since February last year, while sales fell sharply since February this year. The completely different trends made him worry that this year's performance target might not be achieved.

 

Sellers complained that due to factors such as inflation, overseas consumers are becoming less and less willing to spend money.

 

Due to the influence of the macro environment, consumers are indeed more cautious in making purchasing decisions. 57% of respondents said they would search before buying. Consumers consider more factors and their search content is more diverse. The search volume for "which is better", cost-effectiveness, return and exchange services, etc. has increased. At different stages of search decisions, consumers will experience emotional changes such as confusion and lack of confidence. In marketing, merchants need to pay attention to their emotional value and provide buyers with more confidence in making decisions.

 

Of the 3.5 billion searches on Google every day , 15% are new search queries that have never appeared before. Overseas consumption trends have changed, and sellers should also understand the new market expectations and accurately grasp the needs of buyers.

 

Google report reveals three major search trends

 

Google’s recently released Year in Search 2022 report (you can read the original text and download the full version at the end of the article) reveals three hot search trends:

 

1. Explore your true self

 

In 2022, searches about personal needs and preferences increased, and the search content became more refined. Consumers would search for "neutral perfume" instead of just "perfume", "heart-shaped face hairstyle for men" instead of simply "boys hairstyle". In India, searches related to "heart-shaped face hairstyle for men" increased by 330%, searches related to "neutral perfume" increased by 10% in Indonesia, and searches related to "large-size dresses" increased by 20%.

 

People are more self-care, more inclusive, and looking to achieve a work-life balance. Searches related to "healing" increased by more than 230% in Indonesia, and searches related to "single parents" increased by more than 80% in the Philippines.

 

2. Pursue value

 

As inflation intensifies, consumers' impulse purchases decrease, and shopping is mainly focused on daily necessities. People pay attention to cost-effectiveness, environmental protection concepts, and brand credibility.

 

Globally, the search volume for the term "compared to..." has been high. When shopping, people will weigh all aspects instead of going straight for the lowest price. More people will search for "popular" than "cheapest". The trend of buying cheap goods is rising in Vietnam, with searches related to "best deals" increasing by more than 10%; in the Philippines, more consumers are starting to spend time comparing products, and searches related to "which one to choose" have surged by more than 160%, and "which one is better" has increased by 20%.

73% of Southeast Asian consumers are willing to choose more environmentally friendly products and services. The number of searches related to "environmentally friendly packaging" increased by 110% in Australia, and the keyword search for "electric off-road vehicles" in the United States increased by 95%.

 

3. Find happiness

 

People have restarted their colorful lives, such as enjoying massage services, watching the F1 Grand Prix, etc. Consumers are willing to spend a little money to reward themselves and are willing to spend more time researching discounts and offers.

 

“Luxury camping” is popular in Malaysia, with related searches increasing by more than 200%, and searches related to “luxury perfume” increased by more than 60% in India. Searches related to “party styling” increased by more than 210% in the Philippines and more than 130% in Malaysia.

 

Travel demand is at an all-time high, with searches for “international travel” increasing by more than 80% in India and “cheap flights” increasing by more than 110% in Australia, Singapore and the Philippines. Japanese people are concerned about “accommodation discounts,” with related searches increasing by more than 60%, and searches for the keyword “best travel pillow” in the United States increasing by 145%.

 

Judging from the new trends, consumers currently pay more attention to personal feelings, shopping cost-effectiveness, travel and other behaviors that can enhance their sense of happiness, and the demand for related products has increased accordingly.

 

But before deciding to buy, they need more confidence, including "trust assessment" of the brand and confirmation of refund service. Google YIS report shows that 84% of people want to confirm the credit of the brand before buying. The search volume of "authentic" in Indonesia has increased by more than 140%, and the search volume of "refund guarantee" in Malaysia has increased by more than 70%. At this stage, sellers should focus on providing more reliable product information from multiple channels to high-intent consumers to increase sales.

 

Put marketing first to get more orders

 

When shopping needs arise, 37% of users will search on Google. At this stage, consumers search not only for related products, but also for personal pain points. For example, users who want to buy furniture may not directly search for keywords such as "sofa" and "curtain", but may search for "how to complete beautiful and comfortable furniture matching" and "how to present personalized home decoration effects". Therefore, in addition to thinking about search keywords, sellers must also fully consider the needs and search process of users during search.

 

Search is the first stop for consumers when shopping, and it will accompany them throughout the entire process until they make a purchasing decision.

 

During the seeding period, consumers need to establish a "sense of purpose". For example, if they are moving in half a month, what preparations need to be made, what style should the new home be decorated in, and what good-looking home brands are available? At this time, consumers do not have a definite solution. Through searching, they will clarify their needs and generate a definite purchase direction.

 

Entering the exploration phase, consumers begin to search extensively for content related to their goals, but simple product selection quickly makes people tired, and information overload can also make their decision-making stagnate. At this time, Google Search will organize and push out relevant information such as high-scoring experience posts in a contextualized way. Diverse and feasible search results make consumers "longing" for the scene after purchase, and their purchasing confidence is strengthened.

 

When it comes to the decision-making stage, before placing an order, consumers will further evaluate whether the products on the list meet their expectations and compare them with other options. They search repeatedly, compare the large products such as desks and mattresses they like through relevant reviews and user comments, and examine the products and brands they like from different angles until they eliminate the uncertainty in their hearts, establish a "sense of control", and finally make a confident purchase decision.

 

At different stages of consumer decision-making, search plays an important role, delivering potential products to consumers step by step.

 

In marketing, sellers are mostly used to placing performance ads during the purchase phase, but in fact, brand and product penetration can run through the above three links, and the earlier the intervention, the better the effect. By focusing on the early and middle stages of search, merchants can give consumers stronger confidence, influence their purchase decisions, and ultimately close deals.

 

A good example is that the underwear brand Neiwai presented the positive power of women through the "NO BODY IS NOBODY" project marketing, established trust with consumers, and won at the front end of marketing.

 

Scan the QR code below to download the full report to get more consumer trends and marketing cases to help increase sales in 2023!



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