The seller's listing was blocked, and the net loss of a single product was 700,000 yuan in one day

The challenges faced by Amazon sellers this year are no less than last year, and may even be more.

From the liability insurance at the beginning of the year, to the recent postcard address verification, to the recent blocking of big seller accounts, it's really one thing after another.

It is no exaggeration to say that Amazon is full of dangers. At the same time, sellers also have to face uncertainties such as exchange rates and logistics, as well as various pitfalls. How can it be described in one word: "difficult".

Therefore, some sellers said helplessly: "Don't expect to maintain rapid growth this year. It will be good enough if we can maintain profits and profit margins."

Amazon is in danger in 2021, with sellers losing 700,000 yuan per item in one day

One seller joked: “Doing business on Amazon is either a pitfall or on the way to a pitfall.”

Previously, a seller shared a shameful incident: he had just shown off his listing that had received 800 orders a day in the evening , but it was inexplicably blocked in the middle of the night, resulting in a loss of nearly 200 orders in two days.

This year, with the entry of a large number of new sellers, the competition on Amazon, which is already full of pitfalls, has become even more intense and "bloody".

A few days ago, a seller complained that he is worried every day when doing business on Amazon. If he does well, his account may be blocked, and if he does not do well, his account may also be blocked. "The internal competition on Amazon is too bloody now. My listings have turned into dogs three times . This time the loss is the biggest. Yesterday, a single product directly lost 700,000 yuan . "

In addition to increasingly fierce market competition, this year's logistics situation has not made sellers much less worried.

Container shipping prices have remained high recently. According to the "Maritime Silk Road Index" released by Ningbo Shipping Exchange on the 7th, Ningbo's export container freight index closed at 2597.4 points, setting a new record high. The "China Export Container Freight Index" released by Shanghai Shipping Exchange on the same day showed that the freight rate on the US West Coast route also soared to 1371.96, up 1.2% from the previous period.

As freight rates soared, container shortages became particularly severe. Industry insiders analyzed that this increase in freight rates and container shortages will continue until the peak season.

The seller who received the news sighed helplessly: "This year is over. The rhythm of cross-border e-commerce has been completely disrupted."

At the same time, more uncertainties, such as supply chain, raw materials, exchange rates, etc., are also constantly challenging sellers.

The US dollar exchange rate fell to 6.42, and sellers were exhausted

In addition to the recent surge in shipping costs, the entry of new sellers and the increase in costs, another factor that has led to a decline in profits is that the US dollar exchange rate has begun to fall again.

Since June last year , the US dollar exchange rate has been falling from 7.1, reaching a low of 6.42. By April this year, it had slowly rebounded to around 6.5, but recently the US dollar exchange rate has started to decline again.

The central parity rate of the RMB in the interbank foreign exchange market on May 11, 2021 is: 1 USD to 6.4254 RMB

Recently, sellers have reported that the exchange rate has fallen to a level that "even moms can't recognize", having fallen to 6.44. Some sellers said that the competition among peers is so fierce now, and the exchange rate has started to cause trouble again. They don't know if this is the eve of the storm, and they are so tired.

One seller said that based on the exchange rate of 6.57 at the end of March, if he withdraws 100,000 US dollars now, he will lose 14,000 yuan, but he wants to wait and see before withdrawing the money.

Regarding the future trend of the RMB exchange rate, the Peking University National Economic Research Center recently released a report predicting that the RMB exchange rate will tend to fluctuate and appreciate in May, fluctuating widely in both directions between 6.45 yuan and 6.60 yuan. Sellers do not need to worry too much about the possibility of a break.

Uncertainty soars? This protection gives you peace of mind

Amazon sellers have encountered many difficulties this year, including a lack of security. If any link goes wrong, costs will increase. For this year's sellers, increasing a sense of security is a very important factor, whether it is logistics, supply chain, or cost.

The editor learned that Huafuda has been cooperating stably with many logistics companies in logistics insurance for many years. It can customize insurance plans according to the different insurance needs of each logistics company. Compared with fixed insurance products, it is more flexible. In addition, every time the insured goods are lost or damaged, its customer service staff will connect with the claims service very quickly, which really saves a lot of manpower costs. It is also more reassuring to have logistics insurance to protect the goods.

Huafuda is an officially recognized insurance service provider for mainstream e-commerce platforms such as Amazon, eBay, Wish, Shopee, etc. It cooperates with leading insurance companies (PICC, China Life Property & Casualty Insurance, Ping An Property & Casualty Insurance, etc.) and can customize insurance products such as description discrepancy insurance, delay, damage and loss insurance, FBA listing insurance, Amazon comprehensive commercial liability insurance , etc.

exchange rate