There is a cure for orders stuck at 0! US$1,400 in relief funds will be delivered to your account

Since March, many Amazon sellers have seen a drop in orders , and some even had almost zero orders, mistakenly believing their stores were closed. The drop in orders is directly linked to the U.S. economy, but now a savior has arrived - the U.S. House of Representatives passed the final version of a $1.9 trillion economic rescue plan yesterday, and the first batch of people will receive their money through banks as early as March 17.

Each person in the United States can get a maximum of $1,400 in relief funds, which can be obtained by about 90% of households and individuals. Most of the expenses will be spent in the first week after receiving the check. Sellers are ready to welcome a surge in orders!

Orders dropped to a freezing point, and the seller mistakenly thought the store was closed

As March (traditional off-season) begins , orders for many Amazon sellers have dropped, and in the past two days, such feedback has involved more sellers.

An industry insider who claims to be a small seller said that all sales have recently dropped to a freezing point. Another seller said: "I was shocked by the order volume, which was close to 0. I thought the store was closed, so I quickly checked the performance notification."

More sellers have the same troubles:

"——Orders are falling drastically;

——The single quantity is extremely poor;

——Recently, sales have dropped by half, starting from the 6th. I am really devastated;

——It has declined by at least 70% recently;

——off-season, off-season;

——The goods are out of stock, and the goods are still floating on the sea. I dare not think about placing orders;

——All the advertising money was spent but no orders were received. Sales were too poor.

——Seeing other people’s pain makes my own pain seem less severe.”

Among the sellers whose orders dropped, some were out of stock. Their previous sales were too good, and running out of stock would only leave the pain for later. However, the sellers who were not out of stock were still doing well, and even discussed which time of the week had the best sales.

One seller said that weekend sales were not as good as usual, but another seller said that sales from Monday to Thursday gradually decreased, and weekends were the peak period. As for sales, it depends on the category and season.

As orders continued to decline, sellers began to look forward to a lifeline: "Didn't the US government say that it would send money again? When will it arrive?"

Figure 2

US $1,400 in relief funds will arrive in your account, so expect a surge in orders!

According to CNN, on the 10th local time, the U.S. House of Representatives passed the final version of the $1.9 trillion economic rescue plan with a vote of 220:211. U.S. President Biden plans to sign it into law this Friday (12th). After that, relief checks will be mailed out and eligible people will receive the money before the end of the month.

People with an annual income of less than $75,000 (about RMB 500,000) can receive a 1,400 yuan relief check. The approved relief plan mainly includes:

1. Each person can receive up to $1,400 in relief funds, and approximately 90% of families and individuals will be eligible;

2. Increase unemployment benefits by $300 per week;

3. Inject approximately $350 billion into state and local governments;

4. Provide approximately $170 billion for school reopening;

5. Increase food stamp benefits by 15% and extend them through September;

6. Help low-income families pay rent;

…

When will the sales boom that sellers expect occur? Economist Scott R. Baker found that "most spending is done in the first week or so after receiving a check, and people with less bank deposits are more likely to spend."

In fact, domestic sellers may be among the biggest beneficiaries of U.S. relief funds.

Daniel Gros, director of the Center for European Policy Studies , believes that the Biden administration's $1.9 trillion stimulus, which is mainly aimed at the demand side, will have limited effect on the US economy, but will benefit European and Chinese manufacturers. Baker has the same view: "Consumers tend to buy food, non-durable goods and other cheap items-and these are usually products produced by Chinese merchants." This is good news for domestic sellers.

In response to the upcoming buying wave, many sellers are gearing up, saying they will "prepare sufficient inventory and start big sales" in preparation for making a fortune.

But to what extent can this subsidy stimulate consumption? Opinions vary. "American households save a large part of the government subsidies, and if most of the fiscal transfers are saved by households, additional stimulus will not generate additional demand," Gross said.

At present, it seems that the effect of the US relief funds can be said to be immediate. Benefiting from federal funding to support businesses affected by the epidemic, American Airlines wrote a letter to employees: "Attention 13,000 colleagues who were originally scheduled to stop paying wages starting April 1st - the plan is cancelled! You can tear up the notice of suspension of pay."

The purchase price increased fivefold, and the price of raw materials increased, making sellers cry

After hearing the news of the money distribution, some Chinese factories became busy preparing goods for Chinese sellers to purchase. However, the recent continuous rise in raw material prices has really caused headaches for some sellers.

Take copper prices as an example. At the end of February, the main Shanghai copper price rose to 70,000 yuan per ton, a nine-year high. Copper is mainly used in home appliances, construction, new energy vehicles and other industries.

The rise in raw material prices directly affects the price at which sellers purchase goods. One seller said that the purchase price of a product had increased fivefold.

Another industry insider said: "Suppliers are generally raising prices by 15-20%, and logistics costs have not yet fallen, so the cost increase at the terminal is about 50% higher."

The rise in raw material prices is a continuous occurrence. Placing an order a few days late will affect the seller's profits. Some people delay placing an order for a week, which directly compresses their profits due to the rise in raw material prices.

The increase in the purchase price is not enough, the key is that you may not get the goods. A seller said that he thought the price increase was terrible, but the most terrible thing is that he placed an order on the 22nd of last month , waited for more than half a month, and still hasn't received the goods.

A cycle of more than half a month is not long. A service provider said that a customer urged me to send him a cabinet quickly, saying that he had been on break for two months and the products had been out of stock for a long time. The factory’s order placed in August last year was only being made now.

Recently, the editor has discovered that everyone in the circle of friends is posting notifications of price increases. With this wave of price increases due to shortages, the ones who can reap the benefits are those who bravely stocked up years ago.

The peak period before the Lunar New Year is when many sellers prepare for the stocking up. The congestion at Yantian Port is the best proof of this. Due to the frantic stocking up before the Lunar New Year, some big sellers’ warehouses rarely ship goods after the Lunar New Year, and some have not shipped any goods at all.

Sellers who had too much inventory before the New Year were all smiling, but after the New Year, the price of raw materials increased in waves, and it took some time for sellers with less inventory to negotiate prices with suppliers. One seller said: "I was tortured by the price increase of raw materials and burst into tears."

Several sellers said that because some of their customers are old customers, after the price of raw materials increased after the New Year, the suppliers were ruthless and raised prices again and again, but they were not in a position to raise prices for their customers and could only watch the profits become increasingly slim. In addition, the exchange rate situation made them heartbroken every time they saw it.

It is worth noting that while raw materials are rising, shipping costs are falling recently and the exchange rate has slowly recovered a little. As a cross-border seller, it is normal for long-term business to encounter price fluctuations, so remember to do some hedging.