Revenue of 3.5 billion, profit of 6 million! Net profit "consecutively reduced" due to strong sales

Revenue of 3.5 billion, profit of 6 million! Net profit "consecutively reduced" due to strong sales

As the third quarter came to an end, the first half report cards of the big sellers finally came in. Some had high scores, some were just at the passing line, and some went from being top students to being poor students.

 

However, according to incomplete statistics, the performance of most cross-border sellers this year is not satisfactory, with net profits plummeting or even falling into losses. Although the revenue is still several billion, the profit is only a few million to tens of millions. Like most small and medium-sized sellers, even if the big sellers occupy the top market, they are still struggling, selling more but earning less.

 

Revenue is in the billions, but profits are only in the millions. It is becoming increasingly difficult to make money from big sales.

 

"It's really hard to make a profit this year. I continue to sell goods just to sustain the limited market," a seller posted on a social platform.

 

From the beginning of the year to date, many sellers have been faced with survival difficulties due to declining order volumes and plummeting traffic. Even PD has not been able to stimulate large-scale orders from sellers.

 

Consumer confidence in Europe and the United States has been declining, small and medium-sized sellers have been squeezed out in the increasingly fierce market competition, and big sellers have also "killed one thousand enemies and destroyed eight hundred of their own" in this "battle".

 

In the 2023 semi-annual financial reports that have been disclosed , the revenue of most cross-border sellers increased year-on-year, but their net profits plummeted.

 

 

Cross-border e-commerce: Revenue of 3.481 billion yuan , net profit of 6.1869 billion yuan

 

Compared with the same period last year, Cross-Border Link’s revenue only increased by 2.54% , while its net profit plummeted by 25.33% .

 

The better the import business is, the more obvious the decline of the export business is. In the first half of this year, the export e-commerce business revenue of Cross - border Link, mainly ZAFUL , was 252 million yuan , accounting for only 7.23% of the total revenue , and only increased by 1.43% compared with 248 million yuan in the same period last year.

 

Obviously, after Paton and Global Easybuy, ZAFUL can hardly support the export e-commerce sector of Cross-border E-commerce.

 

Zibuyu: Revenue of 1.375 billion yuan , net profit of 10.276 million yuan

 

The first cross-border footwear company to be listed on the Hong Kong stock market on Singles’ Day last year also had disappointing revenue this year. Before the release of its semi-annual report, Zibuyu had issued a profit warning, saying that due to an increase in inventory impairment and storage fees charged by the platform , an increase in employee welfare expenses, and an increase in product return rates , its net profit was expected to decline this year .

 

Although revenue increased by 7.7% year- on -year , Zi Buyu 's net profit plummeted by 83.24% compared with the same period last year.

 

Huading shares : revenue of 4.041 billion yuan , net profit of 90.4343 million yuan

 

In the first half of this year , the revenue of Tongtuo's parent company Huading Holdings increased by 17.72% year-on-year , but its net profit plummeted by 80.51%.

 

With Amazon, Walmart, AliExpress, Meikeduo, Shopee, Lazada and other world-renowned e-commerce platforms and TOMTOP vertical stations as carriers, Tongtuo's products cover more than 200 countries and regions. In the first half of this year, Huading's cross-border e-commerce business segment, mainly Tongtuo, had a revenue of 1.676 billion yuan, a year-on-year decrease of 0.18%; the net profit was only 3.5078 million yuan.

 

It is not just the above sellers. The net profits of big sellers such as JMET and ZEBAO’s parent company Xinghui Co., Ltd. have plummeted, with the decline even reaching 88% . Although the net profits of Jiazhilian’s parent company Xunxing Co., Ltd. and Youkeshu have increased, they are still in a loss-making state.

 

Financial report data reveals the fact that big sellers’ profitability has declined when dealing with the current market.

 

Is this generally the case in the market? Not necessarily.

 

Both revenue and net profit increased significantly, and some big sellers are still making steady progress

 

In stark contrast to the above-mentioned big sellers, against the backdrop of consumption downgrade this year, there are still a few big sellers that have achieved successive growth in revenue and net profit, and the increase is not low.

 

Huakai Yibai: Revenue increased by 52.10% , net profit increased by 149.66%

 

In the first half of this year, Huakai Yibai, which focuses on both high-quality and general products , successfully achieved a revenue of 2.992 billion yuan and a net profit of 208 million yuan . Among them, the revenue of its wholly-owned subsidiary Yibai Network was 2.981 billion yuan, a year-on-year increase of 52.11%; the net profit was 243 million yuan, a year-on-year increase of 116.96%.

 

With more than 950,000 general SKUs and 376 boutique SKUs , Huakai Yibai has steadily developed the boutique market while maintaining its price competitiveness. It has also created a new growth point , the Yimai ecological platform. With its business lines continuously expanding, revenue and profits will naturally develop positively.

 

Anker Innovations: Revenue increased by 20.01% and net profit increased by 42.33%

 

Continuing its previous strategy of seeking progress while maintaining stability, Anker 's revenue in the first six months of this year reached 7.066 billion yuan and its net profit reached 820 million yuan , both of which increased significantly.

 

Anker has enriched its product line with charging products as the main category. Its market performance in smart innovation, wireless audio and other categories is commendable, which is inseparable from its emphasis on R&D . It is reported that in the first half of the year, Anker invested 599 million yuan in R&D , a year-on-year increase of 33.69%.

 

Lechuang Holdings: Revenue increased by 8.37% , and net profit soared by 239.76%

 

Lechuang should be the best performing cross-border player in the first half of this year.

 

Although its revenue is not as high as that of Huakai Yibai and Anker, its net profit growth rate ranks first in the cross-border circle. In the first half of the year, Lechuang's revenue was 1.678 billion yuan and its net profit reached 443 million yuan .

 

Its profit surge was driven by lower freight and product material costs and a stronger U.S. dollar exchange rate, but was also related to the sale of its overseas warehouse assets .

 

Not only did its ergonomic products sell well, but Leckey's overseas warehouse business also performed well this year, earning a revenue of 460 million yuan .

 

Zhiou Technology: Revenue fell 5.87% , net profit increased 68.44%

 

Due to the decrease in freight and storage costs, coupled with the appreciation of the US dollar exchange rate, although Zhiou, which just went public this year, saw a decrease in revenue, its net profit increased.

 

SDIC: Revenue increased by 26.39% and net profit increased by 24.72%

 

The sales of the four leading brands of Savi , Coofandy, Ekouaer, Avidlove and Ancheer, have reached 1.5 billion yuan respectively , accounting for 54.77% of the main business income . In addition, Savi, which attaches great importance to incubating brands, has 19 brands with cumulative sales of over 100 million yuan.

 

Continuously treating "Amazon addiction", big sellers have achieved results

 

The power of Amazon’s account ban wave in 2021 seems to still be there.

 

Big sellers like Youkeshu and Tongtuo, which suffered setbacks in the catastrophe, are still suffering from the pain. Financial reports show that Amazon still has huge amounts of funds frozen for Youkeshu and Tongtuo, and there is no sign of unfreezing them.

 

Therefore, big sellers now want to get rid of single platforms including Amazon and seek multi-platform layout. For example, Anker responded to the trend and settled in shein , which just started the platform model , and Zibuyu settled in TikTok and Temu .

 

Even going all out to develop independent sites, although the results are minimal at present, they are steadily improving, for example:

 

Anker: The revenue of its six independent stations doubled in the first half of this year to 456 million yuan, a year-on-year increase of 112.59%.

Lechuang: The revenue of the independent site reached 305 million yuan, accounting for 23.49% of the total revenue.

 

In contrast, the revenue of self-operated websites under Cross-Border Link is declining, with a drop of 10.96% , while the revenue of third-party platforms including Amazon has increased by 21.38% .

 

Although Zibuyu is also expanding into other platforms, its third-party platform revenue growth in the first half of the year mainly came from Amazon.

 

Huakai Yibai achieved sales revenue of 2.276 billion yuan through Amazon, accounting for 76.05% of its operating income . Currently, it has 720 Amazon stores , with 54 new stores added.

 

Anker's revenue on Amazon still accounts for 55.87% of its total revenue , and Zebao's parent company Xinghui Holdings' revenue on Amazon accounts for 56.90% of its total revenue , an increase from last year.

 

It is clear that it is not easy to reduce dependence on Amazon. At present, rather than reducing dependence, big sellers may want to seize Amazon's huge user pool and traffic and do their best for revenue and net profit.

Big Sell

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