Avoid "involution"! Sellers earn an extra 5 million yuan a year

Avoid "involution"! Sellers earn an extra 5 million yuan a year

Who is making money in cross-border e-commerce?

The joys and sorrows of cross-border sellers are not the same. Some have seen a decline in both order volume and net profit, and are deeply confused about the future; while there are also a large number of sellers who are "making a fortune in silence."

What did those profitable sellers do right? Choosing the right platform track has become a "basic operation".

Sellers are in a very different situation! Only by not "rolling" can you make a profit

As the cross-border e-commerce industry gradually moves from rapid development to the stage of stock competition, players who have deployed a single platform feel the pressure of performance growth.

The lack of sales during the peak season became the "last straw" that broke the camel's back for sellers . Yi Enjun learned that, taking Amazon sellers as an example, many people had high hopes for this peak season and prepared a large amount of goods, but the sales continued to be dismal, and many unsalable stocks were waiting to be processed, so they could only clear the inventory at a loss.

Serious "involution" has become an important factor that entangles sellers. It is well known that product price is the key to placing orders. When a category gathers more and more competitors, many people often choose to pave the way with price wars, first outlasting their peers and then harvesting the market. However, this strategy is used by more and more people, and sellers are trapped in a price war cycle. The result can only be a lose-lose situation with their peers, with both order volume and profits declining.

On the one hand, competition among Chinese sellers within cross-border platforms is extremely fierce. On the other hand, cross-border platforms are also fighting each other. In particular, some new platforms are spending a lot of money to subsidize consumers in order to expand their market, but ultimately a lot of costs are borne by the platform sellers.

"Who are the people making money in cross-border e-commerce?" Observation shows that the situation of cross-border sellers can be said to be like heaven and hell. Some are under increasing pressure and are on the verge of exiting the market, while a large number of Chinese sellers have promptly deployed on multiple platforms, opened up new tracks, and saved their precarious performance.

"No volume, fast orders and high profits" is the ideal platform for overseas sellers. Allegro, a European treasure e-commerce platform, has stood out and become the "new favorite" of more and more cross-border sellers.

Allegro is the first and largest e-commerce platform in Poland. It has been selected as Poland's "super brand" for many years and has a 24-year development history in the market . For many Poles, the concept of "online shopping" is closely related to Allegro. More than 80% of Polish netizens will consider Allegro first when shopping online . In addition to its leading popularity over other platforms, Allegro also has an absolute advantage in customer loyalty . As of 2022, the Allegro platform NPS (Net Promoter Score) has reached 83, far exceeding the industry average .

In fact, Allegro 's influence has long gone beyond Poland. It ranks among the top three in terms of visits in Europe and is one of the top ten e-commerce platforms in the world in terms of traffic .

Favorable platform policy support! Chinese sellers' performance soars

It is worth noting that the Allegro platform environment is relatively relaxed, and the current proportion of Chinese sellers on the platform is not high, less than 10% . Therefore, the competition pressure for Chinese sellers operating in Allegro is not great, and there are many Chinese sellers with outstanding performance. These successful sellers basically have the following characteristics : 1. Have certain sales experience in the European market 2. Actively participate in the platform's promotional activities or have a clear traffic promotion strategy 3. Have overseas warehouses in Europe or use the official warehouse of the Allegro platform, and can provide efficient delivery services 4. Have high sales quality scores and can provide high-quality customer service 5. The categories sold have cost-effective advantages in the European market .

In recent years , Allegro has been focusing on the Chinese market. With the support of the Smart! free shipping plan, the performance of a large number of Chinese sellers has soared.

Smart! Free Shipping Program is a loyalty program specially created by Allegro for customers . Customers who participate in the program can enjoy unlimited free delivery and return services at a very low cost. According to statistics, Allegro Smart! Program has more than 5 million users, and the packages of the program can be delivered free of charge to a network of more than 90,000 express lockers and self-collection points.

Chinese seller Xiao Zhang (pseudonym) joined Allegro Smart! Free Shipping Program in 2022. At first, only about 20% of the offers met the requirements of the Smart! Program. However, after adding the Smart! badge to these offers, the store's sales soon increased significantly. So the seller, under the advice and guidance of the account manager, gradually optimized his offers, thereby gradually increasing the proportion of offers eligible for the Smart! Free Shipping Program. As of 2022, more than 78% of the offers have received the Smart! badge. Comparing the GMV of 2021 and 2022 and the whole year, the seller's turnover has nearly doubled, with a turnover of more than one million RMB .

Coincidentally, another Chinese seller with a larger business scale also achieved a leap in business after joining Allegro Smart! Free Shipping Program, with an increase of 66% and a turnover increase of nearly RMB 5 million in one year .

The Smart! program can be said to be a "weapon" to increase revenue. In detail, compared with international sellers who do not use the Smart! program, using the Smart! program's free shipping plan can obtain the following benefits :

1. Gain more loyal customers. Smart! members purchase 2.5 times more frequently than ordinary users on the platform.

2. Expand business faster. The sales growth rate is 54% higher than that of ordinary sellers.

3. Get higher ratings. Buyers are usually very satisfied with the services of the Smart! program, so they will also leave higher ratings for sellers.

4. Improve the ranking of offers. Usually, offers that provide Smart! plan delivery have higher ratings and quality, and will be displayed at a higher position in the product list.

5. Get more promotion opportunities. The Smart! program provides exclusive discounts and promotions to its members, such as Smart! Week. Sellers participating in the program can have more opportunities to promote and increase sales.

6. Enjoy the benefits of shared freight costs. For Smart! Express shipments from certain European countries (currently including Germany, Czech Republic, France and the Netherlands) , the Allegro platform will bear the cost of 6PLN.

For sellers with overseas warehouses in Europe (shipping from Poland, Czech Republic, Germany, Netherlands, France) , it is very easy to join the Smart! program. Now, this favorable program has opened the option to support shipping from China , which means that all Chinese sellers also have the opportunity to provide free shipping to their customers and get the Smart! badge! Contact your account manager to consult Smart! Program for more details.

Provide multiple assistance to Chinese sellers! Allegro will also help sellers to explore more markets

In addition to the Smart! program , the platform has also launched many free services for Chinese sellers .

The Chinese version of the Help Center and Seller School can provide relevant guidance articles and video materials for sellers' pain points and needs; for sellers with fast performance growth and sales potential, the platform arranges dedicated account managers to help sellers grow faster ; for newly settled corporate sellers, a series of welcome benefits are also provided, including a commission-free discount of up to 10,000 zlotys every 30 days, free ranking promotion services and professional version monthly services.  

Allegro is undoubtedly a blue ocean haven for Chinese sellers to go global! With deep roots in Poland and aspirations for development, Allegro continues to lead sellers to explore more markets and seek broader sales opportunities.

Yi En Jun learned that Allegro not only opened an international site to support sellers to sell products to 24 EU countries, but also started an international expansion plan, currently focusing on the Central and Eastern European market , including the Czech Republic, Slovakia, Hungary, Slovenia and other countries, and is expected to attract 70 million potential customers.

It is the peak season now, so please click on the article link: https://allegro.pl/campaign/sell-on-allegro-enn?affiliation_category=partners&affiliation_source=enn_cn , follow the Allegro platform’s pace, and use the Smart! plan and many other favorable measures to get orders in one click!