Orders dropped by 30%! A large number of sellers are struggling in the cross-border circle, and the battle to reduce costs and increase efficiency is starting

After entering 2022, the cross-border e-commerce industry, which has been growing rapidly under the catalysis of the epidemic, seems to have touched the "brake button", and this track is cooling down rapidly.

Cross-border expansion is a long and arduous journey

Under the combined influence of the epidemic, local wars, inflation and exchange rate fluctuations, the global economy has cooled this year , and overseas consumers' spending power and willingness to buy have dropped significantly. According to the Future Consumer Index survey report released by EY in April 2022, 52% of global respondents said their spending power has declined.

On the other hand, the quietly rising operating and logistics costs have invisibly compressed sellers' profit margins.

All of the above "chills" have posed unprecedented challenges to cross-border e-commerce companies.

It is reported that from April 2021 to April 2022, orders from small and medium-sized sellers in the entire cross-border e-commerce industry fell by a full 30% year-on-year, and active sellers also lost 30% . On October 5, the World Trade Organization predicted in its trade forecast report that global trade will lose momentum in the second half of 2022 and remain sluggish in 2023.

It can be seen that the cross-border e-commerce track is facing a survival elimination competition under the dark clouds. Therefore, how to reduce costs and increase efficiency and successfully "survive" has become the focus of many cross-border companies, especially small and medium-sized cross-border companies .

In cross-border capital flows, overseas companies often need to go through three stages: receiving payments from overseas independent stations, collecting sales proceeds from B2C platforms, withdrawing sales proceeds to bank accounts, and using part of the sales proceeds to pay various fees.

As a key touchpoint between cross-border e-commerce platforms and overseas consumers, the payment link is related to the company's revenue growth, consumers' shopping experience and even the long-term construction of the brand. Its importance to the company's cost reduction and efficiency improvement is self-evident.

But the problems faced by many companies are:

1. The success rate of acquiring orders is unstable, resulting in low traffic conversion efficiency of independent stations;

2. The currency and cross-border remittance policies of different countries and banks are not the same. The long payment and settlement cycle, exchange rate fluctuations, and expensive fees lead to poor cash flow and low capital turnover , which in turn slow down the development of enterprises.

3. Many sellers have sales channels such as independent sites and platforms. They often handle different institutions for receiving orders, collecting payments, exchanging currency, etc. The process is complicated, resulting in chaotic management of multiple platforms and multiple fund accounts, and low fund management efficiency ;

4. The problem of cross-border payments is particularly prominent in overseas emerging markets where electronic payment infrastructure is underdeveloped.

The CFO of Wantuo Science and Technology, a well-known cross-border e-commerce company, once said: Improving the efficiency of financial work is a problem that gives many CFOs a headache. As far as the work of the asset management module is concerned, because it involves the entry of overseas funds, from consumers placing orders to the return of payments to the country and then to foreign exchange settlement, the links in between are complicated, costly and the efficiency of capital circulation is very slow.

It is reported that Airwallex, a financial technology company that recently completed a US$100 million E2 round of financing, is committed to providing cross-border payment solutions for overseas companies, efficiently solving problems such as acquiring, collecting payments, payment exchange and financial management for overseas companies.

Why do overseas companies and capital prefer "AirCloud"?

Since its establishment in 2015, Airwallex has received six rounds of financing in less than seven years. Existing investors include Square Peg, Salesforce Ventures, Sequoia China, Lone Pine Capital, Hexuan Capital, 1835i and Tencent, as well as new investors such as Australian pension fund HostPlus and a large North American retirement fund . Airwallex is developing at a rapid pace. What kind of strength can make it stand out and win the favor of investors repeatedly?

Airwallex has always been committed to building a global cross-border payment infrastructure, providing digital financial technology products and localized professional services around the world to cross-border e-commerce companies of all sizes.

In 2021, Airwallex further expanded its product line. For example, it launched payment acquisition plug-in products on Shopify and SHOPLINE, enabling independent station companies to grow rapidly and safely overseas; launched Canadian Dollar (CAD), New Zealand Dollar (NZD), and Singapore Dollar (SGD) payment accounts; launched the Airwallex Visa card to meet the international payment needs of enterprises in multiple scenarios; launched payment links and account group functions to easily achieve centralized management of multiple accounts ... A series of actions such as this all prove its continued investment in product innovation.

At present, Airwallex's local payment capabilities have covered more than 90 countries and regions, and local collection capabilities have covered more than 65 countries and regions , providing enterprises with a one-stop cross-border payment product matrix of collection (collection/acquisition), management (settlement/management of funds), and payment (payment), solving the sellers' full-link cross-border collection and payment needs at three service levels: acquiring and collection, cross-border funds management, and global payment.

It is reported that S H E IN , HALARA , PatPat, Zaful, Tencent Music and other first-tier overseas leading brands are all relying on Airwallex's global cross-border payment solution to efficiently solve cross-border payment, currency exchange and other problems, thereby reducing costs and increasing efficiency.

It can be seen that whether it is a platform seller or an independent site seller, Airwallex can quickly provide corresponding support for the cross-border payment problems encountered in their business development, while ensuring the compliance and stability of payment collection, helping companies improve cash flow and enhance operational efficiency to achieve sustainable growth .

Airwallex launches the Cloud Drawing Program to help cross-border sellers make money overseas

Next, overseas holidays such as Halloween, Black Friday Cyber ​​Monday, and Christmas in 2022 will follow one after another. Faced with the upcoming peak season, cross-border sellers urgently need to increase the retention rate and turnover rate of funds to maximize profit income.

Based on the current impact of the global epidemic and the current situation of slowing economic growth, Airwallex has keenly captured the cross-border payment pain points of small and medium-sized cross-border e-commerce companies. After obtaining US$100 million in E2 round financing, in order to better enable cross-border sellers to reduce costs and increase efficiency, cross economic cycles, and break through the downturn, Airwallex took advantage of the financing momentum and joined hands with partners to launch the Cloud Drawing Plan , 8 major support policies and limited-time rebates during the peak season, to draw a new chapter of going overseas with sellers.

8 major peak season support policies to reduce costs and increase efficiency, so the peak season is still prosperous!

From October 14, 2022 to December 31, 2022, during the Cloud Drawing Plan activity, Airwallex customers who have registered and completed the information review can enjoy limited-time benefits for the three major products of collection, acquiring, and card payment:

What does the limited-time benefit of the Yunhui plan mean to sellers? Let’s take a look

1. E-commerce platform 365 days of payment collection and withdrawal with 0 fee rate

The general collection fee in the cross-border industry (especially Amazon store collection) is 0.03%. Let's do a simple calculation: if a store receives $100,000 in payments from Amazon every month, a 0% collection and withdrawal fee means that the store can save an additional $3,600 in withdrawal fees per year.

Whether you are a top seller operating multiple sites or a small or medium-sized seller who has just entered the market , saving on transaction fees is earning money!

2. Up to 5% cashback on international card transactions

Many Amazon sellers use payment accounts for direct payment for their in-site advertisements. During the Cloud Painting Plan event, you can also enjoy additional cash back from AirConnect by paying for international transactions with the AirConnect Visa card.

For example: If a seller uses AirHub Visa card to pay for a $5,000 Amazon in-site advertisement, he can get a $200 cashback from AirHub, which directly reduces advertising costs and improves ROI. The more he swipes, the more cashback he gets!

3. Independent station collection up to 1% rebate, no account opening fee

For sellers who plan to expand their independent station business, AirPlace has launched a preferential purchase promotion for the first time. The monthly transaction volume of independent station purchase only needs to reach US$300,000 to enjoy a 1% rebate (limited to Hong Kong dollar settlement)!

4. Advertising, training, finance and taxation, website construction, loans, exclusive rights and interests throughout the entire chain to reduce costs

In addition to offering millions of US dollars in rebates to cross-border sellers, Airwallex will also work with six cross-border ecological partners including Lark, Fengbo International, Shopline, Oushutong, Win Business Club and Shenzhen Cross-border Association to provide limited-time exclusive preferential benefits in advertising, payment, website building, training, etc., empowering the entire process of cross-border enterprises going overseas.

At present, as the cross-border e-commerce industry is undergoing an era of change, for cross-border sellers, if they want to maintain growth during the peak season, reducing costs and increasing efficiency is undoubtedly a key.

As an important link in the cross-border e-commerce chain, high-quality cross-border payment service providers are the hubs that enable cross-border e-commerce sellers to reduce costs and increase efficiency, and ensure the healthy circulation of funds.

Therefore, sellers who choose Airwallex, which maintains a strong growth momentum , will have a better chance of enjoying a strong peak season and achieving global growth.

If you want to know more about the "Cloud Painting Project", click at the end of the article to read the original text.

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Reduce costs and increase efficiency