A large number of sellers have seen a drop in orders. Is it too difficult to do cross-border business this year?

When will the days of declining product sales end?

A "wonderful" day starts with a warm greeting:

Has your order volume decreased today?

Since May, many Amazon sellers have noticed a significant decline in orders, with some sellers even seeing their sales drop by 9/10. Amid the wailing, the editor discovered that the decline in orders is not an isolated case.

What is the reason for such a large-scale order loss? Some people say that this is the calm before the Member Day, and some people say that this is due to their own reasons. However, one thing is certain: capital has entered the market, and nothing can grow. As cross-border e-commerce gradually becomes a national industry, a group of sellers who engage in price wars have directly caused many sellers to lose orders and markets.

How difficult is it to do cross-border e-commerce this year? As soon as the topic came out, a large number of sellers were spitting.

In May, sales of a large number of sellers on multiple platforms fell

The successive closures of big sellers’ accounts have gradually faded from people’s horizons, but this does not mean that the crisis of big sellers has been resolved. At the same time, a group of small and medium-sized sellers are also filled with worries. Why? Both love and career are delayed: not to mention that there is no partner, there are no orders and no money!

The editor learned that since May, a large number of Amazon sellers have complained that their sales are so bad that they can't be any worse:

Seller A: It’s unbearable. Sales have dropped by 1/3 recently. Is the off-season coming?

Seller B: The sales in my category have dropped drastically. The price war has caused me to suffer a broken bone. I am trembling with fear and can only optimize the listing silently !

Seller C: We had 80 orders per day before, but now it has dropped to 12. What happened to the clothing category?

Seller D: I can clearly feel that the sales volume on the US site has declined significantly. It has been falling steadily since last month. If it continues to fall, there will be zero orders sooner or later!

Seller E: My products are kitchen products. They started to slow down last month. I thought there was a problem with the link. Then I found that similar sellers were also losing sales, so I felt relieved.

Seller F: The ranking didn’t drop much, but the sales volume dropped by nine-tenths !

The editor summarized the feedback from sellers and found that the sales of many sellers have only started to decline steadily since May, but there are still a large number of sellers whose order volume is good except when the United States pays money this year, and the order volume at other times is so bad that it is beyond words.

In addition, the phenomenon of declining order volume exists not only in individual categories, but also in individual sites. The sales of multiple categories of products of many sellers in Europe, the United States, Japan and other places have all declined.

At the same time, in addition to Amazon sellers, many sellers on platforms such as eBay, Wish, AliExpress and Walmart said that the rate of decline in order volume is simply unbelievable. An eBay seller said that sales have fallen by 80% in the past week, which has not been so bad in several years.

A seller who had nothing to do but chat in a group because of low order volume felt relieved when he saw that everyone’s orders were floating at a low level.

A seller who was so anxious because his recent sales were even worse than the off-season lost all mood to go to work.

A seller who felt like crying because of the sluggish sales felt even more like crying when he thought of the pile of inventory in the warehouse and the large amount of goods floating on the road.

Which mindset are you in now? Feel free to leave a message to discuss.

Capital enters the market, leaving nothing behind! Price wars are widely complained about by sellers

Anyway, there are always reasons for the decline in sales. What is the reason for this wave of sales slump? The price war is widely complained by sellers.

The influx of various forms of capital into cross-border e-commerce has led to many new entrants and many sellers who have received money starting new product category layouts, and has also to a certain extent seized various resources of cross-border e-commerce sellers.

It is understood that this year, more Tmall and Taobao sellers who were defeated by Pin and Douyin have entered the cross-border e-commerce market, resulting in price cuts. Many bosses have also started to spend lavishly as soon as they entered the cross-border e-commerce market. Some companies even blindly pay salaries to cross-border operations personnel , and their salaries will be doubled if they change jobs. It is certain that a large number of sellers have entered the cross-border e-commerce market and seized the market with low prices. This behavior has also had a great impact on the sales of some old sellers' products.

One seller said that he was making money easily in the category he was in last year, but such comfortable days are no longer available this year. A group of sellers engaged in price wars started a low-price game of "doing charity for the American people". He had no choice but to lower the price. After the price reduction, he lost money on every item sold, and finally ended up leaving the market in disgrace.

It is understood that some sellers, in order to quickly control the category, directly use the cost price as the sales price, and disrupt the market on their own with multiple brands, multiple stores, large inventories and super low prices.

There are many similar examples of seizing the market at low prices. It can be said that once capital enters the market, nothing can grow anywhere.

The affected fellow sellers not only face greater pressure to stock up, but their profits are also plummeting.

An Amazon seller said that it is understandable to sell products at low prices, but no matter what, the principle of reasonable low prices must be followed. Sellers are frantically engaging in price wars on platforms such as Amazon just to drive away other sellers in the same industry. It seems that they have won the market briefly, but in fact, the ones who laugh last are the foreigners who pick up bargains, and those who cry are those who kill each other. The ones who suffer are also the large number of Chinese sellers.

Sellers’ 3 speculations about the decline in order volume

Having said that, apart from the price war factor, what else is related to the decline in sellers’ order volume?

Some say this is the calm before Prime Day.

The news that Amazon will hold Prime Day in June this year has spread. Although the specific date has not been determined, many sellers have speculated that the membership day may be on June 22. Consumers will buy a lot on the membership day and will definitely fill their wallets before the membership day. Many sellers said that the store traffic has increased significantly in recent times, and there are more clicks, but not many people place orders.

Some people say that the reason for the decline in orders on the US site is that the American people are short of money.

The editor learned that 11 states in the United States will stop issuing 300 unemployment benefits . Since the American people have money to spend while lying at home, many people are still reluctant to go out to work when the epidemic situation improves. Under this influence, many bosses said that it is too difficult to recruit people. Data shows that the US government added a total of 266,000 job vacancies in April. Therefore, 11 governors across the United States have announced their early withdrawal from the federal unemployment relief program. Starting from June 12, they will not be able to receive 300 yuan per week and unemployment benefits provided by other state governments.

Some even speculated that the recent decline in orders was related to the blocking of big-selling accounts .

An Amazon seller said that after the news media exposed the fake orders of Amazon sellers, many American people may know about it. Some American buyers will treat Chinese and American sellers differently, which has led to a short-term drop in orders. The editor learned that the closure of the Chinese big seller account has not only caused a stir in the domestic seller circle, but also set off a wave of discussion abroad. Even some foreign mainstream media reported the incident. Regarding this speculation, the editor thinks that if the closure of the big seller account really affects the seller's sales, it is only temporary, so there is no need to panic.

Final Thoughts

In fact, the decline in orders has also successfully brought this topic to the fore: Cross-border e-commerce is really difficult this year!

Many sellers said that in addition to the price war, the decline in exchange rates, the skyrocketing shipping costs, and the rise in raw material prices caused by the massive money printing by the United States have already caused their profits to shrink significantly. If this continues, they will sooner or later withdraw from cross-border trade.

However, while some sellers are trapped by reality and have difficulty moving forward, there are sellers whose sales are rising steadily. In places we cannot see, there are still many sellers who are making a fortune.

Many sellers said that after more than five years of deep involvement in cross-border e-commerce , they believed that cross-border e-commerce is indeed very good at present. People who have been engaged in this industry have reaped all the benefits in recent years, and this will continue to be the case in the short term.

The editor would like to say that if your orders are still declining, don’t be too anxious, and continue to work hard on localization, branding, and specialization. One day, you will increase your sales.

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