Is the off-season coming? Factories are flooded with orders, but orders are declining

After the factory received a surge in orders, the orders declined again ?

Recently, the news of the suspension of power rationing has come, and the tense situation of power supply and demand has eased, which is undoubtedly good news for foreign trade factories. Many foreign trade people are full of expectations and want to prepare for the "explosion" of orders after the resumption of work, and freight forwarders can't sit still.

Some freight forwarders have called for shipping costs to rise again in the second half of the month due to the suspension of power restrictions, resulting in warehouse explosions, so customers who have placed orders for goods should ship as soon as possible. If this prediction comes true, it will naturally be unfriendly to sellers, as costs will continue to rise and sellers' profits will be further squeezed. But what is the truth?

Some textile industry practitioners said that although power rationing has been suspended for now, orders have not increased, and are even less than before. The weaving operation rate in some areas has only reached about 75%. At present, many dyeing factories have experienced warehouse overflows. In fact, this is not due to the large amount of warehouses, but the backlog of orders when the orders exploded before.

In addition, the raw materials whose prices had soared before have also shown a big price drop trend recently. Although a number of large factories have carried out a wave of "promotions", production and sales have not seen much increase. Overall, the backlog of orders is large and the delivery time is slow, coupled with the continuous increase in production costs, which is not attractive to downstream companies.

Therefore, some practitioners predict that, considering the current circumstances, there will be no visible increase in order volume, and shipping costs may not increase significantly in the near future. But the important thing is that the market conditions will get worse and worse, and the real "off-season" is coming.

The reason why ocean freight has become a nightmare for many foreign trade people is inevitably related to the shortage of containers. Some practitioners said that a batch of goods with small profit margins could not be shipped due to the soaring freight costs, and foreign buyers stopped placing orders, so these goods could only be piled up in the warehouse. Even some home furnishing product manufacturers reported that a batch of orders that were originally supposed to be delivered in June this year are still stranded in the warehouse.

In addition, some small commodity manufacturers are also exhausted by ocean shipping. It is difficult to find a cabin and the ocean shipping costs are sky-high. Customers frequently cancel orders at the last minute, and a lot of inventory is piled up in the warehouse, which naturally becomes a problem for capital turnover.

In Yiwu, Zhejiang, a warehouse of more than 6,000 square meters is already full of goods. The goods waiting to be shipped have been stranded for a long time because there has been no container truck to transport them. The person in charge of the warehouse said that many goods in the warehouse have been stored for more than ten days, and some have even been piled up for 30-60 days.

Manufacturers of bathroom products are also facing difficulties. The person in charge said that due to the lack of space, the warehouse is currently full, and the goods that cannot be shipped on time have to be piled up in the product showroom. The turnover rate of the company's products has also been extended to nearly 60 days.

Right now, many factories are "overwhelmed with warehouses", but foreign trade people are not in high spirits at all. The order volume may have new trends during the upcoming Christmas, Black Friday, Cyber ​​Monday and other big promotions. The shipping market situation is volatile, and foreign trade people also need to pay more attention.

At the same time, some sellers who are trying their best to fight during the peak season have also reaped a lot of sadness and disappointment, and have said that "this winter is particularly cold."

Can you achieve primary financial freedom by working on Amazon for one year? Seller: Fake

The cross-border peak season that sellers have been looking forward to has arrived, and many sellers have asked questions such as "The peak season is here, have your stores started to receive a lot of orders? The big sellers in the past, how are you doing this winter?"

"In previous years, when the peak season arrived and Black Friday was approaching, the big sellers took the lead and the sales data of explosive orders were circulated everywhere in the cross-border seller group. But this year, the big sellers have collectively remained silent, and the small sellers are like headless flies, having lost their direction to look for." said a seller.

At the beginning of the month, we felt the peak season, but the goods were stuck on the road, the logistics were not good, and we couldn't sell them . This is what many sellers said from the bottom of their hearts. Storage capacity restrictions, storage fees during the peak season, soaring advertising costs ... these are all important reasons why orders cannot fly and the peak season is not prosperous.

As for the duration of this year's peak season, industry insiders predict that this year's peak season will be very short, just like the winter in Guangdong, which is getting shorter and shorter.

Many sellers joked that it was an unwritten rule that something unexpected would happen before the peak season. One seller said that he was restricted from selling before Black Friday and was maliciously complained by buyers, so he wrote a song for himself. During this peak season this year, logistics and advertising were booming, but the number of orders was not booming at all.

A cross-border seller said that when he was 20 years old, he entered the Amazon track with a dream, an uneasy heart and a spirit of not admitting defeat. He thought that he could achieve primary financial freedom after working on Amazon for a year, but he never expected that year after year, the peak seasons were similar, but the sellers were different every year.

"Five years have passed. I've experienced all kinds of ups and downs, including booming orders, losing money, and insomnia. I've spent a lot of time and made a little money. Now, as an Amazon seller with a lot of experience, I'm still holding on to Amazon and can only hope that the day of booming orders will come soon." The seller sighed.

Sellers also sent out greetings, "My former big sellers, how are you this winter?" Many small sellers described themselves as a shooting star, saying that they would only pass through the long river of Amazon's history, while the legends of big sellers would be passed down forever.

Many sellers said that without a big system like the big sellers, they could no longer sustain their small businesses and were ready to sell their Amazon stores and change careers. Some sellers even posted on WeChat Moments, "I'm selling my Amazon store. The average monthly sales volume is about 30,000 US dollars, and the net profit is 40,000 RMB. Now I'm selling it for 1 million RMB."

It is not accidental that sellers sell their own stores. As early as the peak of Amazon’s account suspension in the first half of this year, we could see the clues from the fact that many Chinese sellers’ accounts were recovered by overseas investment institutions. Nowadays, many sellers choose to change their careers, and there are also many sellers who want to try their hand in the industry.

In the first half of this year, Amazon closed many big sellers’ stores, resulting in a sharp decline in the number of Amazon sellers. What’s worse, some of the top-selling products were absent from the peak season. Many industry insiders have raised questions: Is the spring coming for new sellers?

For many sellers, this year is undoubtedly a year full of internal competition and suffering. Some people broke through the fog, regrouped, and rushed into the peak season; some chose to abandon their accounts and change careers, ending their Amazon seller careers. But for sellers, whether entering or exiting the market, finding a life direction that suits them and sticking to it is the most valuable.

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