Under Amazon's rectification , the industry's sellers are experiencing a reshuffle . Judging from the semi-annual reports released by various companies, many sellers have suffered heavy losses due to account closures. After the account was blocked, layoffs and rent cancellations have almost become routine operations for companies to "survive the cold winter." Recently, a large seller in Shenzhen canceled the lease of an office of more than 4,000 square meters , which triggered heated discussions among sellers in the industry.
With the cases of big sellers being hit hard, under the current situation, compliance management has become an inevitable choice for cross-border sellers . With the peak season approaching, how can sellers pass customs smoothly and achieve new growth?
Shenzhen big seller quits lease of over 4,000 square meters office
Amazon struck with an iron fist, and many sellers were hit hard. One big seller in Shenzhen had to give up the lease of an office of more than 4,000 square meters .
Recently, an industry insider posted a screenshot of a rental and pointed out that this was a large cross-border sales company in Shenzhen. The company suffered heavy losses due to being blocked by Amazon and now wants to give up the office located at the Bantian subway entrance.
The editor clicked on one of the large pictures and saw the logo of a major retail company on the background wall . Then, the editor checked the address of the vacated property and compared the company address, interior decoration and decorative slogans on the recruitment website, and found that the company that vacated the property was indeed a major retail company in the industry.
It is worth noting that according to the leasing information, the office area of this big sale and rescission is more than 4,000 square meters, which shows that this company is not small and can be called a top seller. How many employees used to work in this 4,000-square-meter office? Now, how many people are unemployed!
According to previous public information, there was indeed a problem with the Shenzhen-based seller’s account, and several of its brands were banned by Amazon and have not yet been restored.
Multiple sellers lost more than 10 million
In fact, more than one top seller was affected by the ban. Recently, the semi-annual reports of major sellers have been released one after another, and the following companies have suffered considerable losses.
1. Youkeshu: Tianze Information's semi-annual report mentioned that due to the changes in the policy environment of the Amazon platform and the sharp decline in the independent station business, Youkeshu's revenue in the first half of this year was 1.092 billion yuan, a year-on-year decrease of 51.12%, and a net loss of 742 million yuan. Analyzing the reasons, the company said that due to suspected violations of Amazon platform rules, some of Youkeshu's sales sites were closed and store funds were frozen, which objectively affected the business development on the Amazon platform .
2. Zebao : Xinghui shares' semi-annual report shows that Zebao Technology's net profit in the first half of the year was 115 million yuan, which was more than 30 million less than last year's 148 million yuan. On June 16, some of Zebao's products were stopped from sale by Amazon . From the 16th to the 30th, Zebao suffered a lot of losses in just about half a month! Xinghui shares also mentioned that if Zebao's related products fail to resume sales on Amazon , it will have a significant impact on its annual operating performance.
3. Tongtuo: According to Huading’s semi-annual report , Tongtuo Technology’s net profit in the first half of the year was 76.8004 million yuan , and the export order volume exceeded 19.58 million . In the announcement, Huading said that the sales of stores affected by the account suspension accounted for a large proportion, and the development of cross-border e-commerce business this year is bound to be adversely affected to varying degrees. Huading announced earlier that 54 stores of Tongtuo Technology were suspended from sales by Amazon and suspected of freezing funds of 41.43 million yuan.
Big sellers such as Youkeshu, Zebao, and Tongtuo have all suffered losses due to account suspension , and the losses are more than 10 million yuan. If the Amazon account is not restored, it will further affect their performance for the whole year.
This year, Amazon’s ban has affected not only top sellers, but also many small and medium-sized sellers, and the industry has encountered “growing pains” . Next, it is imperative for sellers to operate in compliance .
However, some sellers said : " Amazon has cracked down on fake orders . The previous methods are no longer applicable. I really don't know how to operate. Now if you want to get orders, you have to lower the price. I have personally tested that lowering the price is one of the best ways to get orders, but the lower the price, the less profit. Sellers in many categories are losing money on sales. "
Some industry insiders even said bluntly: "If all regulations are implemented, well-funded big sellers will sell at low prices or promote advertising vigorously, which will be a new shock to small and medium-sized sellers. In addition, many new sellers have entered the market with a lot of money this year. In the future, Amazon will definitely have a lot of room for capital, and ordinary sellers will find it difficult to compete."
Many sellers are deeply touched by the fact that the overall profit this year has dropped sharply, far lower than in previous years. There are two reasons for this:
1. Orders have dropped significantly compared to the same period last year . Most sellers have seen a decline in orders, but some have also seen an increase against the trend, which is related to the categories sold. This year, products related to the epidemic or household products have not continued the trend of last year's explosion;
2. Price wars broke out, and profits were severely eroded. Price wars had already occurred long before the big sellers were blocked. At that time, on the one hand, sellers who had a large amount of inventory last year were frantically reducing prices, and on the other hand, new sellers were spiraling to rank at low prices. After the account blocking wave broke out, big sellers cleared their inventory at low prices, which led to the escalation of price wars.
To live up to the peak season , Q4 operations are like this
Accounts are blocked, profits are plummeting, advertising fees are soaring ... All kinds of problems confuse cross-border sellers. Under the huge changes brought about by Amazon, sellers have different thoughts on the company's development plan and operation strategy : What are the next opportunities? Should we expand to multiple platforms? With the peak seasons such as Black Friday and Cyber Monday approaching, how can we choose the right products, prepare stocks, and make comprehensive operational preparations in Q4? In the context of industry compliance, what will be the future growth trend? The answer is obvious.
On September 10, the "Vertical and Horizontal Growth 2021 Ten Million-level Cross-border E-commerce Seller Empowerment Summit" will be held in Shenzhen. Lingxing ERP has joined hands with many industry leaders to invite tens of millions of cross-border sellers to attend and discuss ways to break the deadlock .
The conference brought together many big names, who will discuss new solutions starting from the pain points of cross-border sellers such as operations, traffic, and company management.
In terms of operations: The founder of Global Easy Trade will reveal how to select products through product belts to help sellers select high-quality resources; George, the founder of Tongzehui, will analyze Amazon's new product promotion and operation strategies from the aspects of establishing a product database, how to embed keywords, and product selling point design.
Traffic: Traffic is the lifeblood of e-commerce. Oxford Xiao Ma Ge, a cross-border e-commerce traffic expert, will focus on analyzing the current traffic pattern and trend, and discuss how to efficiently obtain traffic; Lu Cong, founder of Shenzhen Topology and cross-border Internet marketing expert, will share how to use independent stations to build the second curve of corporate growth. These topics are important references for sellers' decision-making.
In terms of company management: Recruitment difficulties have been a problem throughout this year. Lingxing ERP invited Zhang Lijun, founder of Startup Yeast, to share how to build a healthy and sustainable organizational structure, recruit outstanding talents and manage personnel; Cao Longhui, former supply chain director of Banggu Technology, will also share his experience in supply chain management for overseas products.
Through this conference, sellers can also enter the high-end circle of the industry and achieve seamless connection of industry contacts and resources.
Get ready for the peak season! Click "Entrance" to register for the conference. Under Amazon's rectification , the industry's sellers are experiencing a reshuffle . Judging from the semi-annual reports released by various companies, many sellers have suffered heavy losses due to account closures. After the account was blocked, layoffs and rent cancellations have almost become routine operations for companies to "survive the cold winter." Recently, a large seller in Shenzhen canceled the lease of an office of more than 4,000 square meters , which triggered heated discussions among sellers in the industry.
With the cases of big sellers being hit hard, under the current situation, compliance management has become an inevitable choice for cross-border sellers . With the peak season approaching, how can sellers pass customs smoothly and achieve new growth?
Shenzhen big seller quits lease of over 4,000 square meters office
Amazon struck with an iron fist, and many sellers were hit hard. One big seller in Shenzhen had to give up the lease of an office of more than 4,000 square meters .
Recently, an industry insider posted a screenshot of a rental and pointed out that this was a large cross-border sales company in Shenzhen. The company suffered heavy losses due to being blocked by Amazon and now wants to give up the office located at the Bantian subway entrance.
The editor clicked on one of the large pictures and saw the logo of a major retail company on the background wall . Then, the editor checked the address of the vacated property and compared the company address, interior decoration and decorative slogans on the recruitment website, and found that the company that vacated the property was indeed a major retail company in the industry.
It is worth noting that according to the leasing information, the office area of this big sale and rescission is more than 4,000 square meters, which shows that this company is not small and can be called a top seller. How many employees used to work in this 4,000-square-meter office? Now, how many people are unemployed!
According to previous public information, there was indeed a problem with the Shenzhen-based seller’s account, and several of its brands were banned by Amazon and have not yet been restored.
Multiple sellers lost more than 10 million
In fact, more than one top seller was affected by the ban. Recently, the semi-annual reports of major sellers have been released one after another, and the following companies have suffered considerable losses.
1. Youkeshu: Tianze Information's semi-annual report mentioned that due to the changes in the policy environment of the Amazon platform and the sharp decline in the independent station business, Youkeshu's revenue in the first half of this year was 1.092 billion yuan, a year-on-year decrease of 51.12%, and a net loss of 742 million yuan. Analyzing the reasons, the company said that due to suspected violations of Amazon platform rules, some of Youkeshu's sales sites were closed and store funds were frozen, which objectively affected the business development on the Amazon platform .
2. Zebao : Xinghui shares' semi-annual report shows that Zebao Technology's net profit in the first half of the year was 115 million yuan, which was more than 30 million less than last year's 148 million yuan. On June 16, some of Zebao's products were stopped from sale by Amazon . From the 16th to the 30th, Zebao suffered a lot of losses in just about half a month! Xinghui shares also mentioned that if Zebao's related products fail to resume sales on Amazon , it will have a significant impact on its annual operating performance.
3. Tongtuo: According to Huading’s semi-annual report , Tongtuo Technology’s net profit in the first half of the year was 76.8004 million yuan , and the export order volume exceeded 19.58 million . In the announcement, Huading said that the sales of stores affected by the account suspension accounted for a large proportion, and the development of cross-border e-commerce business this year is bound to be adversely affected to varying degrees. Huading announced earlier that 54 stores of Tongtuo Technology were suspended from sales by Amazon and suspected of freezing funds of 41.43 million yuan.
Big sellers such as Youkeshu, Zebao, and Tongtuo have all suffered losses due to account suspension , and the losses are more than 10 million yuan. If the Amazon account is not restored, it will further affect their performance for the whole year.
This year, Amazon’s ban has affected not only top sellers, but also many small and medium-sized sellers, and the industry has encountered “growing pains” . Next, it is imperative for sellers to operate in compliance .
However, some sellers said : " Amazon has cracked down on fake orders . The previous methods are no longer applicable. I really don't know how to operate. Now if you want to get orders, you have to lower the price. I have personally tested that lowering the price is one of the best ways to get orders, but the lower the price, the less profit. Sellers in many categories are losing money on sales. "
Some industry insiders even said bluntly: "If all regulations are implemented, well-funded big sellers will sell at low prices or promote advertising vigorously, which will be a new shock to small and medium-sized sellers. In addition, many new sellers have entered the market with a lot of money this year. In the future, Amazon will definitely have a lot of room for capital, and ordinary sellers will find it difficult to compete."
Many sellers are deeply touched by the fact that the overall profit this year has dropped sharply, far lower than in previous years. There are two reasons for this:
1. Orders have dropped significantly compared to the same period last year . Most sellers have seen a decline in orders, but some have also seen an increase against the trend, which is related to the categories sold. This year, products related to the epidemic or household products have not continued the trend of last year's explosion;
2. Price wars broke out, and profits were severely eroded. Price wars had already occurred long before the big sellers were blocked. At that time, on the one hand, sellers who had a large amount of inventory last year were frantically reducing prices, and on the other hand, new sellers were spiraling to rank at low prices. After the account blocking wave broke out, big sellers cleared their inventory at low prices, which led to the escalation of price wars.
To live up to the peak season , Q4 operations are like this
Accounts are blocked, profits are plummeting, advertising fees are soaring ... All kinds of problems confuse cross-border sellers. Under the huge changes brought about by Amazon, sellers have different thoughts on the company's development plan and operation strategy : What are the next opportunities? Should we expand to multiple platforms? With the peak seasons such as Black Friday and Cyber Monday approaching, how can we choose the right products, prepare stocks, and make comprehensive operational preparations in Q4? In the context of industry compliance, what will be the future growth trend? The answer is obvious.
On September 10, the "Vertical and Horizontal Growth 2021 Ten Million-level Cross-border E-commerce Seller Empowerment Summit" will be held in Shenzhen. Lingxing ERP has joined hands with many industry leaders to invite tens of millions of cross-border sellers to attend and discuss ways to break the deadlock .
The conference brought together many big names, who will discuss new solutions starting from the pain points of cross-border sellers such as operations, traffic, and company management.
In terms of operations: The founder of Global Easy Trade will reveal how to select products through product belts to help sellers select high-quality resources; George, the founder of Tongzehui, will analyze Amazon's new product promotion and operation strategies from the aspects of establishing a product database, how to embed keywords, and product selling point design.
Traffic: Traffic is the lifeblood of e-commerce. Oxford Xiao Ma Ge, a cross-border e-commerce traffic expert, will focus on analyzing the current traffic pattern and trend, and discuss how to efficiently obtain traffic; Lu Cong, founder of Shenzhen Topology and cross-border Internet marketing expert, will share how to use independent stations to build the second curve of corporate growth. These topics are important references for sellers' decision-making.
In terms of company management: Recruitment difficulties have been a problem throughout this year. Lingxing ERP invited Zhang Lijun, founder of Startup Yeast, to share how to build a healthy and sustainable organizational structure, recruit outstanding talents and manage personnel; Cao Longhui, former supply chain director of Banggu Technology, will also share his experience in supply chain management for overseas products.
Through this conference, sellers can also enter the high-end circle of the industry and achieve seamless connection of industry contacts and resources.
Get ready for the peak season! Click "Entrance" to register for the conference. Shenzhen sales, lease termination, Amazon |
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