In addition to the ubiquitous scams that cause sellers to suffer losses, various fees are also rising, especially the surge in logistics costs after the COVID-19 pandemic, which has caused sellers to complain that their profits have been eaten up by shipping costs.
A novice operator stepped into a low-level trap and the seller lost 320,000 yuan overnight
Sellers all know that doing business on Amazon is full of traps, so they are always careful. But sometimes, no matter how careful they are, they cannot guard against a stupid teammate. A small, low-level mistake on their part is enough to cause the seller to suffer heavy losses.
A few days ago, a seller cried and said : "I fell into a scam of 50,000 US dollars (about 320,000 RMB). I have heard of this low-level scam many times, but this is the first time it happened to me."
"Look, my sales are over 50,000, but the actual revenue is 0!" he said. " The new operator set up a discount for the product, and then added a coupon, which was shared by celebrities on social channels. Then, in an instant, the product worth more than 50,000 dollars was sold for 0 yuan ! "
According to the editor's observation, there are quite a few sellers who make similar mistakes. The difference is that some are dug out by others, while others do it on their own initiative.
A seller complained not long ago : "Amazon has a record-breaking order volume of more than 1,800 orders, but has suffered a net loss of 42,000 yuan. The record-breaking order volume has forced us to a dead end."
According to the seller, the huge loss was caused by the fact that he participated in a flash sale at a very low price and then forgot about it, resulting in the product being sold at a price $16 lower than the original price. Combined with logistics, costs, commissions and advertising, he suffered a net loss of $6,700 (about RMB 42,000 ) in one day .
In addition to the low-level pitfalls mentioned above, sellers often encounter pitfalls such as choosing the wrong product, which turns the product they had high hopes for into a hot potato.
It is reported that a seller posted a container on a platform event, but the goods could not be sold. He had to pay storage fees, moving fees, processing fees, and burning fees, resulting in a direct loss of hundreds of thousands of dollars.
There are also products that go bad for no reason, and listings that have been steadily receiving hundreds of orders a day go bad for no reason, and the initial investment goes down the drain.
A seller complained about the biggest pitfall of Amazon, saying that he spent 430,000 yuan on layout and promotion, and in one month he made a product the number one Best Seller in the category , with hundreds of orders per day. However, the link became a dead link for no reason and he could no longer sell it, and all the initial investment was wasted.
FBA fees are rising, and air and sea freight prices are also starting to soar
For sellers, the recent increase in logistics costs has also reduced their originally "meager" profits.
Not long ago, Amazon announced that starting from June 1 , the Amazon logistics delivery fee changes will take effect. The fees for different size segments have been refined and increased . The delivery fee has increased by about 2-3% on average , and the logistics labor handling fee has also increased. In addition, in the core Amazon logistics delivery fees, in addition to increasing the delivery fee, the product size classification has been refined, and the new standard has also cancelled the original packaging weight option. And this change in packaging weight has caused the logistics cost of sellers who sell more than 3 pounds of goods to rise sharply, and the profit cost has been compressed again.
Some freight forwarders also said that a lot of containers have been piled up in US ports recently, and the Port of Los Angeles broke the freight record again in February, continuing the historic growth for 7 months. Ocean freight has added a lot of costs, and the price of ocean freight has been "crazy rising". Sellers only need to pay 2-3 times the price for air freight , which can save 4-7 weeks . Many sellers have turned to air freight.
But whether it is air or sea delivery, it is still too much of a torture for sellers in the US market, because most of the profits are "eaten up" by logistics . Some sellers said that the freight in June last year was still four figures, but by December, the freight was six figures, and the capital turnover was extremely long. In order to maintain the normal turnover of funds and support their cash flow, sellers who had never used credit cards before suddenly applied for three new credit cards as backup ...
Tight capital turnover? Use "e-commerce loans"
In order to help sellers maintain normal capital turnover, Huafuda currently cooperates with Bank of China and other banks to provide export e-commerce companies with pure credit loans with an annualized rate of 3.85%-6% , without mortgage or guarantee, for both public and private use, with a maximum loan amount of up to 10 million yuan, a simple process and fast approval.
Many sellers are confused about e-commerce loans, such as lack of trust and uncertainty about efficiency. However, Huafuda has completed loans for many e-commerce companies, and the largest loan of 10 million yuan has completed all review procedures.
According to Yien, these small and medium-sized sellers in Shenzhen who have obtained low-interest, credit loans mainly sell consumer electronics, clothing, shoes and hats, and outdoor cycling products.
In order to solve the industry pain points of cross-border export e-commerce, Huafuda not only provides customized low-interest credit loans, but also provides customized insurance products: description discrepancy insurance (order insurance), delay and damage insurance (logistics insurance), cross-border return insurance, shelf insurance, etc.; many of these insurance types are innovative insurance types first introduced in China and are well received by the market.
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