Profits plummeted this year! Amazon sellers: "Price wars" cannot survive

The scale of cross-border e-commerce has increased nearly 10 times in the past five years, cross-border logistics prices have been rising, and Amazon's best sellers have been "pulled down from the altar" one after another... Cross-border e-commerce, which has been both popular and hot, is still developing at a high speed. As cross-border e-commerce exports have entered the stage of intensive cultivation and the competition has escalated, the "price war" under the traditional thinking has no longer worked, and it is urgent to reduce costs, increase efficiency and improve its own hard power!

Amazon: Closed 600 Chinese brands and 3,000 seller accounts

Two days ago, Amazon officially responded to the large-scale account blocking incident on the platform.

Amazon said that in the past five months, Amazon has stopped the sales rights of about 600 Chinese brands, and about 3,000 accounts of these brands have been closed. In addition to repeatedly abusing reviews, the 600 Chinese brands that were blocked also had some other violations, such as forging identities, bribery (cooperating with some gray industry parties), and selling illegal products.

Amazon will continue to improve abuse detection and take enforcement action against bad actors, including those who intentionally violate policies multiple and repeated times and abuse reviews.

This "unprecedented" large-scale account blocking incident caused many well-known sellers to "fall from the altar" , and a number of small and medium-sized sellers also fell silently .

"Securing the account" is the key! Cross-border sellers have encountered the pain of "encirclement and suppression", and once again deeply realized the importance of compliant operations. "Some illegal practices seem to save a lot of costs, but they also bring greater security risks to the store . The platform will eventually block the account, and at this time, not only will it return to the pre-liberation era overnight, but it will even lose a lot of money ." Amazon sellers said that the era of wild growth of cross-border e-commerce has passed. As an asset-heavy platform, Amazon needs sellers to have awe of the rules.

With profits shrinking severely, how can cross-border sellers reduce costs and increase efficiency?

In addition to account blocking, there are many "stumbling blocks" for cross-border sellers on the road to making money .

This year, almost 9 out of 10 cross-border sellers are complaining about the shortage of funds! The combination of exchange rates, raw materials, logistics, platform policy changes and other issues has reduced the profits and impacted the normal operation of cross-border sellers. "This year is too difficult. I don't ask for money, I just want to survive!" Such voices are heard one after another. How to reduce costs and increase efficiency has become the top priority of cross-border sellers!

Faced with the impact of price increases, big sellers have taken multiple measures to reduce logistics costs.

The "sky-high shipping costs" that have gone viral are making a large number of cross-border sellers miserable. "My product is only worth 60,000 yuan, but the shipping costs have exceeded 60,000 yuan. I suddenly realized that if I don't sell on Amazon, I'm still quite rich!" An Amazon seller said that the shipping costs now account for 20% of the company's sales . If the shipping costs continue to rise, the profits will be "swallowed up".

In addition to small and medium-sized sellers, cross-border sellers are also facing the impact of the "price increase" in logistics. Leckey said that the ocean freight in the first quarter of 2021 was as high as 22.1194 million yuan, a year-on-year increase of 528.13%. In order to reduce the adverse impact of freight price increases on the company, the company will seize the opportunity to lock in ocean freight prices by signing a framework agreement with shipping companies.

Big seller Anker Innovations also transports goods through sea shipping channels . Anker Innovations said that with the surge in freight rates, they will continue to optimize shipment efficiency and reduce freight costs by improving management capabilities, expanding logistics channels, and setting up overseas warehouses .

Amazon sellers: Reject low prices, you can’t survive in “price wars”.

In addition to the rising trend of freight costs, the price of raw materials is also spiraling upward, but the selling prices of cross-border sellers' products have not increased accordingly. " As of now, the shipping costs and the increased costs of raw materials seem to be borne by many Chinese sellers , not consumers . " Industry insiders said that under the cost increase, the Amazon platform has been blowing a "spiral low price" trend this year, and a large number of sellers who do not want to sell at low prices have been forced to get involved in the "price war". The high costs have not only failed to be shared by overseas consumers, but the pressure of low prices has caused the costs to continue to rise. Under multiple pressures, many sellers said that their profits continued to decline. Strong sellers may be able to survive the price war, but those small sellers with weak capital chains may "lose money and go bankrupt."

" Reject low prices! Reject pranks! Reject involution! Reject being a philanthropist! " The voices are getting louder and louder. "Some time ago, our company decided to steadily increase the prices of all products. At present, the sales volume has not been greatly affected, and the net profit has increased. The low-profit and high-risk gameplay will sooner or later kill the sellers themselves. " The editor learned that many sellers have already raised the prices of their products. This move has also successfully alleviated the cost problem and ensured the sustainable growth of profit margins .

In fact, there are many factors that push up costs. Collection is a common topic, but if you are not careful, it can make the seller's profit even thinner.

"There are many and cumbersome payment links. A cross-border payment needs to be "transferred" by multiple parties before it can be truly received. This not only causes exchange losses, but also increases labor costs and collection efficiency. The slow payment speed may be a disaster for sellers who are in urgent need of money." The editor learned that in addition to exchange losses, there are many "sweet troubles" in the payment link. For example, as cross-border sellers expand their operations on multiple platforms and multiple sites, if each site opens an independent account, the manpower and time costs of management will also increase; in addition, many cross-border sellers now face the pain point of high transaction fees when placing advertisements on or off the cross-border e-commerce platform to attract traffic...

At this time, it is important to choose a payment tool that has the advantages of low fees, multiple scenarios, global payment, and high efficiency . It is reported that in June 2021, Airwallex and Visa, the world's leading digital payment company, launched the Cloud Remittance Visa card (a good funds card) to companies in Hong Kong. The Cloud Remittance Visa card breaks the high cost norm of existing virtual cards on the market. As a global member institution of Visa, it directly cooperates with Visa to issue cards. One card opens up cross-border payments in multiple scenarios, allowing companies to make instant payments at low cost and high efficiency around the world, which just meets the diverse payment needs of companies.

Yunhui Visa Card supports payment in multiple scenarios . It can not only solve the payment needs of e-commerce platforms such as store rent and advertising fees on e-commerce platforms, but also meet the payment of major overseas advertising platforms and advertising agencies. In addition, Yunhui Visa Card can also be used in overseas procurement and payment of suppliers and subscription fees.

In addition, Yunhui Visa Card also supports payment and direct settlement in 10+ mainstream currencies such as US dollars, British pounds, euros, Australian dollars, and Hong Kong dollars , saving unnecessary currency exchange costs , reducing costs, and making collection more secure.

The Cloud Remittance Visa card can reduce costs while making work more efficient. The Cloud Remittance Visa card is directly connected to the Air Remittance payment account, supports transfers between public accounts with the same name, and allows immediate card opening upon online registration (the default number is 50 cards). It can match different scenarios, flexibly classify, and efficiently manage! ! ! The following figure includes but is not limited to scenarios for using the Cloud Remittance Visa card:

It is worth noting that from September 2 to October 31, new users who open a Yunhui Visa card and use it to complete international transactions of any amount can get cash back, with a cash back ratio of up to 0.8% of the transaction amount. That is, if the seller's transaction amount reaches 100,000 US dollars, the cash back can be up to 800 US dollars (about 5,100 yuan).

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