I lost 1 million yuan on Amazon! Seller: I will definitely make money in 2023

Don’t worry, you are not the only one doing year-end summaries and planning for 2023 !

Speaking of year-end summary and New Year's plan, I believe that most cross-border people are familiar with it . From observation, although many cross-border companies skip this operation every year, especially small companies with only a few people, the group of sellers who pay attention to this matter is relatively large.

In their view, this is a necessary task , and they can find lessons from the review and do a better job in the next year through planning. Therefore, the key points of discussion generally revolve around "Have the performance goals set at the beginning of the year been achieved? How much net profit was made in 2022? What is the goal for 2023? What are the solutions to the problems that have been encountered?"

The new year is a reshuffle of the cross-border e-commerce industry. Old people are leaving and new people are coming in. Some people are determined to leave Beijing, Shanghai, Guangzhou and Shenzhen completely, some want to take the civil service exam to get a job; some people enter the cross-border industry with expectations, some people boldly join the solo group after tasting the sweetness, or expand their companies; some people just want to survive, some people silently swear that they will not lose so much money this year, and some people are confident that they can make money from Amazon this year ...

This annual summary and expectations for the New Year fully describe the various aspects of life of cross-border people!

Ice and fire! Some sellers have negative 2022 target completion rates, while others earn over 100 million yuan a year

Another year has passed! Recently, many cross-border people have started to review their 2022 year-end performance . Judging from the results, some are happy while others are worried.

2022 year-end summary: The company is still there, the store is still there, excellent!

In 2022, the monthly base salary is less than 7,000 and there is no commission.

In 2022, Amazon suffered huge losses overnight, and not only lost all his original capital but also owed hundreds of thousands of dollars.

I have been struggling to survive in 2022, and every time there is a little hope, something goes wrong.

In 2022, store sales doubled, profits also increased, and peak season revenue doubled .

In 2022, we turned the tide and achieved annual sales of over 100 million yuan. We hope to reach even higher levels in 2023.

I will definitely make a fortune from working for Amazon in 2023 .

…

The sellers’ joys and sorrows are not the same. Those who make money are happy to review their transactions, while those who work for nothing are shrouded in sadness.

"I have been working on Amazon for several years, and this year is the most tiring year. From a personal perspective, the link ranking in 2022 is very close to that of last year, but the orders are half as many as before, and many of my peers are in a similar situation." The editor learned that in the past 2022, there were many sellers who complained about the misery. Among them, many sellers saw their annual sales and profits cut in half compared to 2021, and many of them only achieved 50% or less of their annual target sales. However, in 2021, their business was still in a state of rapid growth, and they easily exceeded their set goals. In just one year, the situation took a sharp turn for the worse, and the gap can be described as huge.

There are also many sellers who have "increased revenue but not profits". Even though their sales have increased significantly year-on-year, their net profits are not as much as last year, which means that "sales and net profits are inversely proportional". Those popular products with impressive sales actually do not bring much actual value to the company. Some people even reported that they lose money on every sale of popular products. The more they sell, the more they lose, which seriously lowers the company's overall profit margin.

A seller said, "The annual sales volume is good, but the net profit is only 5%. We have been working extremely hard in 2022. The inventory pressure and capital pressure are getting greater and greater, and the returns are not as much as in previous years." It is understood that many cross-border companies have a net profit margin of less than 10%. Sellers who can maintain 20% are already considered impressive. If any seller says that his net profit margin exceeds 30%, he will immediately receive a lot of complaints, suspecting that he is an unscrupulous training institution that wants to sell courses to harvest novices!

In fact, sellers who can still make money or small profits in 2022 are already very powerful. After all, there is still a group of cross-border sellers who are about to suffer heavy losses in 2022. After suffering a heavy blow, some people were directly cleaned out, while others were seriously injured and struggled on the edge of bankruptcy.

" 2022 has come to an end with many bumps and bruises. After calculation, the annual target completion rate is even negative. In the process of promoting new products, none of the products that were thought to be popular were promoted. All the money earned from old links was used to subsidize the losses of new products. The money earned in the second half of the year was almost all used to subsidize the losses in the first half of the year. The overall loss was more than 100,000. " The editor learned that many sellers lost tens of thousands at least, and millions at most in 2022. This is definitely due to the operational errors of the sellers themselves, such as misjudging the situation and blindly expanding new products, but the impact of the overall environment cannot be ignored.

Sellers on the European site, in particular, have been hit hard by the economic recession.

Compared with other overseas markets, Europe has heavy taxes and many compliance requirements. Expenses such as EURO, German Packaging Law, and VAT are inevitable. However, putting these costs aside, Europe is a developed country after all, and consumers' spending power is still very strong. It can be said that when the market conditions were good in the past two years, excellent cross-border sellers could easily make a lot of money from the European market. However, the overall environment in 2022 was terrible, and the European market suffered a far greater blow than other markets. In order to break through, the price war killer was used more handily by a large number of sellers. This was a fatal blow to some sellers. Products with meager profits were facing a dilemma. Price cuts were equivalent to "self-abandonment", and if they did not cut prices, they would be squeezed out by their peers...

"Whether compared with many Chinese counterparts or local European sellers, price has always been one of the main advantages of our company's products. The order volume this year is really bleak, and the peak season that was highly anticipated has also passed in a dull manner." According to feedback from a seller, the European market used to be described as blooming all over, and almost every product had considerable traffic. This year, many categories are not doing well, and their company's products are among them. They are not considering selling some categories that are still hot because they are unfamiliar with them and the competition is too fierce. Without much financial support, it is difficult to break through the siege, and they should give up the European site next.

Compared with the law of elimination in previous years, more European sellers gave up this market in 2022 and turned to the United States, Latin America and other tracks.

Is everyone losing money? The still crowded cross-border track proves from the side that this industry still has great potential. In 2022, when some sellers are questioning their lives due to losses, there are of course many sellers making a lot of money.

Fast forward to a year ago, when many cross-border sellers were setting goals for the beginning of 2022, it was not uncommon to see words such as annual sales of 5 million, 50 million, and 100 million. Judging from the results, a large number of sellers have indeed successfully achieved their one-year plans.

In 2022, a Shenzhen seller sold nearly 300 million yuan on the Amazon platform. The team size quickly expanded more than three times from the initial 20-plus people, which can be said to be rapid growth.

Many sellers have deployed both third-party e-commerce platforms and independent websites . Fortunately, almost all channels will flourish in 2022. "The sales and profit data of Amazon and independent websites are much better than in 2021, and it is expected that they will maintain rapid growth in 2023." A seller said in his annual summary that the goals set at the beginning of 2022 were exceeded, and many old links have become the main profit force this year after precipitation over time.

Coincidentally, another cross-border operator also stated that the company's product sales have doubled since the beginning of the year. Not long after the boss changed his car, around the middle of 2022, he upgraded the "level" of the car and bought a new car worth one million. Another point worth praising is that after he became rich, he also raised the salaries of all the company's operators.

What is certain is that sellers who maintain profit growth in 2022 have a foundation of comprehensive strength such as capital and supply chain, as well as the impetus of factors such as category dividends.

To summarize the market situation in 2022, each seller has a different foundation and is in a different track, so the conclusions drawn will also be different, and even present a situation of ice and fire. How do the top sellers view the market situation in 2022?

Yibai Network, based on the company's own situation, said that in 2022 , the cross-border e-commerce industry continued to recover , which is specifically reflected in the following aspects:

First, overseas inflation has improved beyond expectations and reached a turning point, which will help overseas consumption to gradually recover and have a positive impact on the retail industry.

Second, online retail sales in the United States accounted for 14.8% of total retail sales , an increase of 0.3% month-on-month, and the penetration rate of e-commerce in overseas markets is expected to increase further.

Third , Amazon launched the "Account Protection Plan", which appropriately corrected the simple and rough account blocking behavior in the past. This move greatly alleviated the panic of sellers who were worried that their accounts would be blocked at any time.

Fourth , shipping costs have dropped. Compared with the same period last year, this year's shipping costs have dropped by about 60-80%. The proportion of the company's freight to net sales revenue has dropped by 2%-3%, which has greatly improved the gross profit margin. It is expected that there will be room for continued decline next year.

Fifth , there is exchange gain. The overall exchange rate fluctuations this year are more friendly to export companies. The company's exchange gain and loss in 2021 was approximately 41 million, and it is expected that positive exchange gains may be achieved in 2022 .

Yibai Networks said that in 2022, the overall revenue of the general product business may be lower than that in 2021 , but the sales in the second half of 2022 alone should be able to achieve year-on-year growth. It is expected that in 2023 , through category expansion and expansion of emerging markets, general products can achieve a 10% growth.

Looking forward to 2023, an operator: I hope the boss will not become an employee

The 2022 work summary and the 2023 work plan can be said to be closely linked. The 2023 work plan is based on the achievements made in 2022. While doing the year-end review, everyone will also make expectations for the new year.

You have to have dreams, just in case they come true! What are your plans for 2023? Workers and helmsmen have spoken out:

In 2023, we can only say that people can turn into dogs, but links cannot!

Plan for 2023: The company is still there, the store is still there, and I am still here!

Goal for 2023: Protect my boss from going to work at the company opposite!

I hope the company can make a profit in 2023, a little less is fine as long as it doesn’t lose money.

I hope the performance in 2023 will be better, or at least the performance completion rate will be higher.

I only have three wishes for 2023: I hope I can be single, single, and single.

Vision for 2023: No stores will be closed, freight forwarders will not run away, trademarks will not be exposed, and suppliers will not demand payment.

…

“ In 2023, I have to plan to complete those things in 2021 that were not completed in 2022 and should have been completed in 2020. In 2019, I vowed to complete the goals set for 2018. ” To put it more bluntly, the goals for 2022 (2021, 2020, 2019, 2018) were not completed, and we can continue to work hard in 2023... Perhaps the pie we drew at the beginning was too big, and we have not been able to successfully digest it for several years. "One year's goal is applicable to five years" seems absurd, but it is a true portrayal of many sellers!

Make money if you have money, and don't make money if you don't! In 2023, we still have to tighten the battle line. The first task is to stabilize the basic market in hand, and expanding the business territory is not even within the scope of consideration. In the eyes of these sellers, "leaning losses is making money" and "not seeking to make money but to survive" have become the main themes of struggle in 2023.

" Every year is not easy. The company lost nearly 5 million in 2021 and lost money in 2022 as well, but the loss was much less, only more than 1 million. I hope the company can make money in 2023 and pay off the debt as soon as possible . " After working in Amazon for several years, although the company's performance has declined one after another, this seller still has certain expectations for cross-border e-commerce and believes that Amazon has development potential in the future.

Many sellers hold the same idea and believe that both sales and profits will show positive growth in 2023. Those sellers whose performance has doubled in 2022 are looking forward to further improvement in 2023. It is understood that many sellers have set a sales target of 100 million yuan or even higher in 2023.

In 2023, although the "bald" workers want to get out of being single, their primary goal is still to "get rich overnight", but the income of workers is closely related to the company's profitability. In terms of the situation, the company's performance in 2022 was miserable, and the situation of workers would not be good, so these people's New Year's wishes are very humble: I hope that the company can make money in 2023 , so that they can get commissions and bonuses.

"I hope I can get commissions every month in 2023, instead of the basic salary, which I have only received for two consecutive years. " An Amazon operator said that the basic salary was not much to begin with, and now even the basic salary cannot be paid on time due to the company's operating difficulties. The salary for September will not be paid until December 2022. Another worker said that everything was fine when he first came to the company, and team building, regular dinners and other projects were indispensable. Now the company's afternoon tea is gone, and the year-end bonuses and year-end dinners that were necessary during the Spring Festival holidays in previous years are also gone. The end of the universe is still within the system. Another group of workers who see no hope have made up their minds to resign after the holiday, change careers, and join the vast army of civil servants.

On the other hand, workers who had a smooth 2022 are ready to buy a house, a car, or start their own business in 2023. Some operators will receive a year-end bonus of 30,000 yuan, and after calculating their savings in recent years, they think buying a house can be put on the agenda immediately; others have accumulated enough money and experience to become their own boss.

"Going it alone is the only way out!" In real life, many operators are working alone while working, and they hope to be able to work alone completely in 2023. Some others failed in their business and became workers again to pay off their debts, but they did not give up the idea of ​​starting a business, and they would start a second business after getting back on their feet.

Do cross-border sellers still have a chance in 2023?

The attitude of cross-border people towards 2023 reflects their predictions about the prospects of the cross-border e-commerce industry. Every year, there must be a classic question: "Is there still a chance for cross-border e-commerce this year?"

An Amazon seller expressed pessimism, saying that delivery fees , storage fees , and disposal fees have increased , but prices cannot increase . There will be even fewer opportunities for cross-border sellers in 2023.

A cross-border seller is optimistic that Chinese sellers with supply chain advantages are still popular among foreign consumers.

Behind the two different attitudes, there is a group of sellers.

Looking at the market, many sellers believe that the European market, which was extremely bad in 2022, will continue to decline in 2023; the US market, which has the strongest consumption power, will still face severe challenges in 2023, but there will be more opportunities than in Europe.

"The Russian-Ukrainian war has led to an energy crisis and severe inflation in Europe. The negative effects are still emerging, and the European market continues to be pessimistic in 2023." A European seller said that objectively speaking, not all sellers have suffered defeat in Europe, but we cannot ignore Europe’s difficulties. For those sellers who focus on the European market, shifting positions to new markets such as the United States and Latin America is "on the verge of happening."

Sellers are also pessimistic about the US market. A recent survey released by Gallup, a US polling company, shows that 79% of respondents believe that 2023 will be a difficult year for the economy. Among them, more than 80% expect taxes to increase, 65% believe that prices will rise rapidly, and more than 50% expect unemployment to rise. The analysis pointed out that Americans are skeptical about 2023 and remain negative about the economic situation. At the same time, some economists are concerned about the slowdown in economic growth caused by rising interest rates and predict a recession in 2023.

It is undeniable that after the United States continued to raise interest rates significantly, consumers' mortgage pressure has increased significantly and housing expenses have risen sharply; inflation is still relatively high, including food and oil prices in supermarkets are nearly 80% higher than before the epidemic , all of which have a suppressive effect on consumer purchasing power .

However, industry insiders believe that every market reshuffle also means the arrival of new growth points. As the largest market for cross-border sellers, the United States still has more opportunities. The United States is a big consumer country and a consumption-driven country. Under the background of high inflation in the United States, consumers will be more inclined to buy cost-effective Chinese products . More and more American consumers are adapting to online purchases , which is also a big benefit for sellers.

In fact, cross-border e-commerce will only become more difficult year by year. It can be said that 2023 is the best year in the future and the worst year in the past! Now is not the era of wild distribution. The method of spending money to pave the way is becoming less and less effective. Too many previous lessons have warned us that just bringing money into the market will only make you a "sucker" of the platform. Sellers must also have composite capabilities such as supply chain advantages, judgment , and market acumen to find breakthroughs in the subtleties of the stock market.

For the majority of small and medium-sized sellers, no matter what year it is, they need to maintain old customers, enhance pre-sales and after-sales service awareness, attach importance to original design and intellectual property rights, avoid price wars and make high-quality products, polish and upgrade products based on customer needs based on existing products, stabilize the basic market and do not expand blindly!