In the cross-border e-commerce industry, the RMB exchange rate against the US dollar, the euro and other foreign currencies is the focus of the operators. Short-term changes in exchange rate may generate exchange income or exchange losses of tens of thousands or even more.
Yesterday, the US dollar exchange rate officially fell out of the 7 range and returned to the 6 era. The 7.5 that some sellers expected did not come, but instead missed the exchange rate high of 7.3, and they couldn't help but feel upset. At the same time, the order volume of Black Friday Network declined after the past, which was particularly obvious in the past two days. The subsequent blows made American site sellers a little frustrated.
In order to increase platform traffic, Amazon has recently increased its efforts to place advertisements to the outside world, which may improve the sales of sellers, which is exciting.
US dollar exchange rate returns to the 6th era
Early yesterday morning, the offshore RMB exchange rate against the US dollar rose successively above the 7.01, 7.00 and 6.99 marks, up more than 700 basis points from the closing of the previous trading day; followed closely by the onshore RMB opening and pulling up. As of 18:00 on December 5, the offshore RMB exchange rate against the US dollar was 6.9468, and the onshore RMB exchange rate against the US dollar was 6.9530.
As of today's press time, the onshore and offshore RMB exchange rates of onshore and offshore RMB against the US dollar remained near 6.96. After the US dollar exchange rate was higher than 7, it came to an end for more than two months.
USD exchange rate This wave of " speed skating " made many sellers unexpectedly. "I originally wanted to rise back to 7.3 and mention it again, but it fell to 6.9." "Last week, I thought about 7.3, and now I'm fine." "I ignored the 7.29 in the past, but I can't afford to love the 6.9 now." people regretted it and failed to settle the exchange rate at a higher point.
exchange rate fluctuations directly affect the amount of exchange funds and retained profits. Sellers who withdraw cash last week can be said to be "earned". Regarding the situation where the exchange rate has been falling sharply in recent days, some sellers suggest that if you are in urgent need of money, you should withdraw it if you are in urgent need of money, and don’t look at the exchange rate; if you are not in urgent need of money, it is recommended to withdraw cash in batches to buffer exchange losses.
In fact, cross-border sellers do not have high expectations for exchange rates. Some of them believe that it is acceptable to stabilize the exchange rate at around 7. The most feared thing is that it will fall to 6.3 like the beginning of this year, which is almost an unbearable pain. profit is like water in a sponge being squeezed away.
Foreign trade was also impacted. A foreign trader said that the exchange rate exceeded 7, and the orders received last month were no profits. Another foreign trader was in a similar situation. He took two orders at the exchange rate of 6.9, shipped in mid-December and early February respectively. The profit was not high, and he hoped that the exchange rate could stabilize at 6.9. However, foreign trade can still negotiate prices, so cross-border e-commerce does not have such a lot of room for maneuver.
In fact, against the backdrop of dull overall sales and falling profits this year, the US dollar exchange rate that continued to rise in the second half of the year has maintained the bottom line of profit for many companies. However, if the US dollar exchange rate stabilizes below 7 in the future, sellers in the industry will face a significant exchange gap next year, and this cost will immediately affect cross-border e-commerce pricing and profits. Judging from the current situation, it is quite difficult to raise prices and sell prices and sell prices and sail against the current.
According to professional analysis, the strengthening of RMB exchange rate is affected by the superposition of internal and external factors. Internally, domestic policy measures to stabilize growth have continued to be put in place, and the market's confidence in the stabilization and recovery of the domestic economy has been boosted; externally, US inflation indicators have continued to fall, and the expectation of the Fed's path to slow down the support of the US dollar has weakened, and the RMB exchange rate has begun to rebound strongly.
senior researcher Chang Ran, a Zhixin Investment Research Institute, believes that the subsequent RMB exchange rate may return to the normalized two-way fluctuation trend, and RMB exchange rate may stabilize and appreciate in 2023. sellers can refer to exchange rate changes and formulate development plans for next year based on subsequent industry situation estimates.
As exchange rate fluctuates, Amazon sellers' profits will be further pulled down. The display results of the Amazon advertising homepage also give sellers more opportunities. If the advertising investment is large, the seller's operating cost will also increase accordingly, which will affect profits.
Amazon search results reduce shoppers' confidence?
For a long time, Amazon has been the main place for online product search.But in a latest report by foreign media mentioned that Amazon no longer seems to provide customers with what they want because advertising is changing the real search results.
Some customers found that the product displayed when searching for "cat bed" is not the desired product, but the related advertising product. There is a dog in the picture of this advertising product, not a cat. In the first five pages of search results, more than half of the products are either ads or Amazon’s own products. A study by
Profitero found that Amazon showed advertising sponsored products on its search results homepage twice as many as those of Walmart and four times that of Target . In a report by
Recode, Amazon's advertising business grew by 58% in 2021, becoming the third largest online advertising seller. One big seller on the platform said that to succeed on Amazon now, 10% to 20% of sales must be spent on advertising.
co-executive director of a research institute, said that Amazon can "change and guide purchasing behavior" by prioritizing private brands in search results, while downgrading non-Amazon products to a lower position in the results.
Foreign media also launched a survey to ask consumers: Do you think Amazon's practice of displaying ads in search results has reduced shoppers' confidence in the website?
The survey is not yet finalized, but Amazon advertising revenue growth is indeed very strong. Many sellers can see that advertising costs have increased significantly, which has increased operating costs. Some sellers even bluntly said that they cannot place orders without advertising.
sellers need to advertise on the platform. With low-priced entrants such as TEMU, Amazon may also feel the pressure of "traffic being stolen" and began to spend huge amounts of money to place advertisements on social platforms.
It is reported that Amazon plans to resume advertising on Twitter at a price of about $100 million a year, and wait for Twitter to make some security adjustments to the advertising platform.
Since Musk took over Twitter, advertisers have stopped serving advertising due to factors such as uncertainty, and advertising revenue is the revenue pillar of Twitter. Recently, Twitter sent an email to advertisers, saying that the company will launch the "largest advertiser incentive program ever" in December, and that additional exposure will be rewarded if advertisers' investment reaches a certain amount.
advertisers returning to Twitter may include Amazon, but people familiar with the matter said Amazon has never stopped advertising on Twitter.
As Amazon invests in advertising on social media, the overall traffic of the platform is expected to rebound further. Currently, Christmas is coming, and during this peak season this year, some sellers may also see a rebound in sales.
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-