More than 80% of Americans shop on Prime Day, and these products will explode

Ever since the date of Amazon Prime Day was announced, cross-border sellers have been busy with this: updating product titles, descriptions, pictures, etc., highlighting promotional information and product advantages, improving product attractiveness and search rankings; determining the products participating in the promotion and the extent of the discounts, such as discounts, full-amount reductions, buy one get one free, etc.

Another important thing is to spend a lot of money to increase product exposure. In this case, if the financial strength is insufficient, it is easy to lose in the competition.

This year's Amazon Prime Day, Americans continue to buy

Every year, Amazon Prime Day is a carnival for sellers and buyers. In 2023, Amazon sold more than 375 million items worldwide during Prime Day, with sales exceeding US$20 billion (up from US$19.2 billion in 2022).

As the main target market for sellers, the United States performed extremely well. According to Adobe Analytics data, during Amazon Prime Day 2023 (July 11-12), total spending by U.S. consumers reached $12.7 billion, a year-on-year increase of 6.1%.

Amazon recently announced the official dates for Prime Day 2024 (July 16 and 17). During this period, American consumers will be more active in their shopping. According to emarketer's forecast, American shoppers will spend nearly $14 billion online during Amazon Prime Day 2024.

Although there is still some time before the big promotion, many Americans have already started planning their spending. A survey of more than 1,000 Americans conducted by RetailMeNot found that 81% of consumers plan to shop on Amazon Prime Day, with an average total expected spending of $521, including $300 on Amazon and $221 on other retailers . This is an increase of $150 and $100 respectively from last year.

Here are the items they plan to buy:

According to the survey, the items they purchased most included clothing, shoes and apparel (46%); laptops, computers and tablets (34%); headphones (30%), kitchenware and bakeware (30%); and home decor (28%).

By then, sellers of these categories will surely usher in a wave of hot sales.

Now is the critical stage of the sprint. In order to further increase product exposure, Amazon sellers are increasing their advertising efforts. Recently, some sellers found that as the Prime Day approaches, the recommended bids for both new and old products have doubled. It can be seen that sellers have invested a lot of money.

However, at this critical juncture, some sellers have encountered difficulties. As we all know, the shipping price has been soaring in recent months, and has been rising for 12 consecutive weeks. The freight rate on the US route has directly exceeded the 10,000 yuan mark, and sellers are under great financial pressure. In this case, the advertising cost will increase again, and many sellers are directly stumped.

In fact, the funding issue is not only highlighted during this promotion. For a long time, it has always been a major problem that cross-border e-commerce sellers, especially Amazon sellers, urgently need to overcome in their development journey.

The trend of heavy assets is obvious, and sellers are in financial difficulties

In the cross-border circle, there is a widely circulated saying: " Amazon sellers need to prepare three batches of goods, one for sale in Amazon warehouses, one for replenishment at sea, and one in factory production. "

In order to meet market demand, cope with potential order growth and ensure fast delivery service, Amazon sellers usually need to stock up a large amount of goods in advance. The purchase of these goods requires a lot of money, and it also costs a lot of money in storage and transportation.

Because of this, sellers have said that Amazon has become an asset-heavy business model. Moreover, the mold-making costs of some products are as high as millions, and the popular "Three Cabinets" strategy (one cabinet for free, one cabinet for swipes, and one cabinet for flash sales) requires a lot of investment.

Therefore, Amazon sellers are currently generally facing financial difficulties.

For sellers, lack of funds is like cutting off an arm, which seriously hinders their development.

For example, a seller who joined Amazon in 2018 invested more than 400,000 yuan in products within half a year. Later, due to various reasons, he was unable to keep up with the funds and could no longer continue to develop new products. He could only sell out the existing FBA goods and use some money to pay rent and maintain his life.

A Shenzhen seller of 3C electronic products also struggled with insufficient funds. The company of this VC seller plans to focus on Amazon VC business this year, and its operations team predicts that the order volume will grow rapidly in the short term, which may lead to a funding gap when connecting with factories.

Moreover, Amazon's VC business has a certain payment period, which further increases the financial pressure . Poor capital turnover may cause the company to miss the opportunity to take on more orders, thereby hindering its own rapid development.

Fortunately, the seller found a solution. This method not only alleviated the financial pressure and improved the efficiency and turnover of capital utilization, but also increased its monthly sales from US$700,000 to US$3 million, and is expected to triple by the end of 2024.

New financing methods emerge, sellers are saved

A new financing method has emerged, giving sellers hope! The solution this seller found was the "invoice financing" financial service provided by MODIFI.

So, what is "invoice financing"? In short, it means "you give me an invoice, I give you money". That is, B2B foreign trade companies or cross-border sellers pledge their accounts receivable (invoices) to financing service providers or banks to obtain immediate funds to solve short-term capital turnover problems.

It should be pointed out that invoice financing is not a loan. There is an essential difference between the two. Loans are generally issued based on the borrower's overall credit status and repayment ability, while invoice financing provides funds based on the accounts receivable represented by the invoices generated by specific transactions. In the loan approval process, more emphasis is often placed on comprehensive factors such as the borrower's long-term financial status and credit record; while the approval focus of invoice financing is whether the transaction corresponding to the invoice is real, the buyer's credit status, and the recoverability of the accounts. In addition, from the perspective of risk bearing, the loan risk is mainly borne by the borrower. Once repayment difficulties occur, it will have a greater impact on the borrower's credit.

In foreign countries, invoice financing has long been a fairly mature financing method, but in China, it is still a relatively new concept.

So, what are the advantages of the invoice financing solution provided by MODIFI?

First, relying on MODIFI's invoice financing solution, sellers can not only recover the platform's payment in advance, but also obtain the payment on the day the invoice is provided, successfully avoiding the platform's long collection cycle of 60-120 days, effectively ensuring timely collection of payments, and thus maintaining a better cash flow situation.

Secondly, MODIFI's invoice financing supports online self-service throughout the process. Its financing platform MODIFI HUB can realize automatic invoice recognition and support API access to achieve data exchange between different platforms. In this way, corporate financial personnel can easily complete independent financing applications. At the same time, the financing amount can be applied for once and used multiple times without providing more supporting documents.

Third, the financing amount is quite considerable. In response to the financing needs of sellers on cross-border e-commerce platforms, MODIFI regards your invoices as assets. As long as you have invoices, you can get unlimited financing!

Fourthly, MODIFI provides financing services without collateral, guarantee or recourse! Sellers do not need to worry about overdue payments on the platform and can focus on platform layout and sales!

MODIFI's invoice financing not only supports traditional foreign trade sellers, but also supports cross-border e-commerce platform suppliers such as Amazon VC, Walmart DSV, Best Buy, Home Depot , etc. MODIFI is the first international company to provide invoice financing in this highly innovative digital way .

In today’s cross-border industry, the “full trusteeship” model has become popular, and even Amazon, a cross-border e-commerce giant, has recently joined the fray. To some extent, the “full trusteeship” model is also a B2B model.

As the "full trusteeship" model continues to develop, it will inevitably put forward higher requirements on the seller's financial operation ability. However, unlike traditional exporters, e-commerce platform sellers usually do not have physical products or factories to serve as collateral for bank loans, so it is difficult to obtain financing through traditional channels.

Invoice financing can break this dilemma.

If you also have financial problems, you can contact MODIFI, add WeChat: lixianshen8054 , or click https://share-eu1.hsforms.com/1jHIS4mRlSiigKS0vE5LWjQfnhw4

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