As the dividends from the epidemic gradually shrink, the cross-border e-commerce market has also returned to rationality from wild and rapid growth and entered the slow lane. Due to the superposition of multiple factors such as serious product homogeneity and rising customer acquisition costs, some people have chosen to withdraw from the market due to difficulties, while others are still shining. What do they rely on?
Many products ranked TOP1 in their categories, and the best-selling experience was made public.
Take the pet market, which is currently booming, for example. From the elderly to children, their love for pets is no longer just for companionship in the traditional sense. Instead, they love pets like their own children. This has also led to the amazing growth and potential of pet food, supplies, beauty, and even funeral industries throughout the pet life cycle. By 2023, the global pet market will have reached $190 billion.
SINOWAY is a product of the pet bonus period. It was established in 2021 and entered the Japanese site. The popular pet climbing frame became a BSR within 30 days of its launch, and then remained the sales champion. Benefiting from this, SINOWAY's sales exceeded one million US dollars in the first year.
After further investigation, we can find that pet climbing frames can quickly break out of the Japanese market. In addition to being in line with the local design style, the product will be continuously upgraded based on user feedback after it is launched, such as adding waterproof functions, using dirt-resistant fur materials, and components that conform to the pet's exercise habits.
In terms of early product selection, the person in charge of SINOWAY also has his own methodology. The first priority is to understand the latest local consumption trends and real-time hot spots. Taking Japan as an example, people with small houses will prefer small appliances and storage tools. Secondly, it is to locate specific consumer groups and dig deep into segmented needs. Japanese elderly people have strong consumption power and will be more inclined to buy products such as elderly strollers, retractable and foldable portable crutches, etc.
Another pet brand, Horman, has successfully entered the Japanese market with a pet drying box. The product is currently on the Best Seller list and its sales have doubled.
It became a hit as soon as it was launched. One reason is the product pricing. Due to its functional innovation (it solves the risks of high temperature burns and noise) and good quality, there is a lot of room for premium. Even though the price is twice as high as that of competitors, its sales volume is still 5-6 times higher than that of its peers. The second reason is that category innovation drives efficient product dissemination, making countless consumers remember this number one.
The same hot-selling model creation methodology is not only applicable to the pet category, or limited to a certain market. The sports brand Baleaf entered the US market from a niche track, focusing on highly adaptable sportswear. Now it has achieved a billion-level volume, and many products occupy BSR, relying on the ultimate cost-effectiveness and diversified clothing that adheres to quality. It can be said that in some categories, the same hot-selling theory and product selection method are applicable.
However, even with high-quality products and experience, the current market situation is still a headache for some sellers.
As costs continue to soar, how can sellers break the deadlock?
In fact, since Amazon updated its new policies on logistics costs and sales commissions in 2024 at the end of last year, sellers have been complaining about "rising costs". This situation is mainly reflected in various aspects such as platforms, advertising and logistics.
Policies such as increasing the warehouse configuration fee and the minimum inventory fee have been gradually implemented this year. The platform's revenue has been increased, but the seller's profit has also been eroded. In March, the warehouse configuration fee officially took effect, and the logistics turnover cost was passed on to the seller. Some sellers pointed out that after the warehouse was divided, it would cost an extra $20 to ship a box, and the annual freight cost was estimated to be $100,000 higher.
Amazon later announced that it would formally impose minimum inventory fees on sellers of standard-sized products and expand the scope of return processing fees. According to statistics, there are about 16 fees that sellers need to pay from the time the goods are shipped. The fees are constantly increasing, and the sellers' profits are also constantly shrinking based on this. The profit target for the first half of the year was successfully missed.
At the same time, advertising costs are also gradually rising, and sellers’ complaints are increasing almost every day. “Advertising fees are ridiculously high, $4 per click,” and “Advertising expenses are almost the same as sales.” Profits are eaten up by advertising, and a tripling of the advertising budget has not made any splash. Many sellers are saying that they can no longer continue and want to leave Amazon.
As the old saying goes, when it rains, it pours. With the big sale approaching, there has been a steady stream of bad news about warehouse overflows. Warehouses including LGB8, GYR2, GYR3G, FTW1, IND9, CLT2, RFD2, etc. have frequently experienced problems with slow shelving and warehousing of goods. Some have even cancelled all contracts, causing some sellers to run out of stock or miss out on the big sale.
At the critical juncture of warehouse explosion, the first-leg freight rate has continued to rise. "I used to think that a monthly increase of $1,000 was high enough, but now it increases every half a month," a freight forwarder said helplessly, and this situation is still continuing. Starting from June 20, many companies including Maersk once again issued freight rate adjustment notices. One company announced that the maximum freight rate would increase to $9,800, effective from July 1 to July 14.
There is also news that MSC plans to increase the freight rate by $2,000 per container from July 1. If successful, the freight rate will exceed $10,000, which is another considerable expense for sellers. As freight rates continue to rise, the phenomenon of freight forwarders running out of space, shipments being abandoned, and orders not being issued has become the norm. Some sellers were abandoned four times after sending a shipment.
In this case, sellers need to choose to cooperate with more reliable and more transparently priced logistics platforms when shipping goods. The QINLUJIE digital international logistics platform launched by Samsung SDS has branches and stations in 36 countries around the world, and maintains in-depth cooperation with many shipping companies, with significant timeliness advantages.
Compared with general logistics platforms, Qinlujie is more transparent in every link from quotation to transportation. It can provide sellers with diversified logistics product prices and routes, and supports online price comparison and ordering, just to help sellers have no worries during the peak season.
Now, if you register for free for the first time to become a member of the Qinlujie platform, you will have the opportunity to receive for free the "Amazon All-Round Operation Required Course" created by Lao Wei, the founder of Yingshanghui Cross-border E-commerce Academy . It is 51 sections long and covers multiple levels of operational knowledge such as product selection, advertising, and the creation of hot products. There are also many actual case studies to help sellers master core operational knowledge points in a short period of time, grow rapidly, and create hot products.
Interested sellers can scan the QR code to add customer service WeChat to learn more details and receive the above benefits. (There are only 50 places, while stocks last!)
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