Since the power rationing order was issued and local governments began to strictly control the situation, major media platforms have paid great attention to this news. , especially the Douyin powder, it is estimated that this type of video can always be viewed during this period of time, and the people concerned are anxious, and the unrelated people eat melons.
The epidemic is coming back, and the new policy is also accompanied by it. The two are caught between the two. The most uncomfortable thing is the cross-border e-commerce industry . As a major manufacturing country, the e-commerce industry has also flourished in China in recent years, and as China is currently the safest country, many companies are assured of doing business with China.
Ever since, many factories in China have received unprecedented "care", and there are an incredible number of orders coming to China. The cross-border e-commerce market is also experiencing explosive growth. Unexpectedly, this has become the beginning of the industry's "spiral" and "involution".
(industry internal volume picture)
1. High income low out
Recently, a person who claimed to be a seller of wrote a letter to Amazon 3span. . The content said: " The current market environment is not very optimistic. The prices of materials and logistics are constantly increasing. Compared with the previous two years, the gross profit alone is 7-8%. Points.
Especially now that the policy of “power outage and work stoppage” has been introduced, the operation time of enterprises has also been shortened, the construction period has been shortened, and the shipment rate has naturally decreased. The supply chain will be in short supply, but the raw materials are still rising, and the purchase cost of buyers will naturally go up. This can't be done anymore. As soon as this statement came out, many people echoed: it seems to be such a rationale.
(many orders are very small now) pspan _p7strong1 strong1 Flowing to China, although it looks like a boom on the surface, in reality, profits are plummeting. Not only are low-price spirals, but they are also involuntary. , business is difficult to do. Amazon will enter new business sellers in 2022 It has also been officially launched, which means that more fresh blood has been incorporated.
If there are more people, it’s not that the volume is more powerful? It’s because there is an involution spiral before, and there will be continuous low prices afterwards. Compromise. When the peak season is down, Amazon is still in an unstoppable spiral. Not only does the price drop and the discount is full, and even directly opens 0 yuan to buy warmth, these operations are to settle in the sellers. I’m all terrified.
(product price reduction map)
Faced with the surging cost of various costs,With the continuous rise of raw materials and shipping, even careful calculations can hardly escape being severely squeezed by commodities to get a little profit. Judging from the current data, China's foreign trade data looks beautiful, but in fact it is filthy. No wonder someone writes such a letter.
After all, the Amazon seller group finally released a signal to call for price increases, and now there are people shouting every day: Chinese sellers must unite, stop doing charity, and quickly increase prices. What's more: I want to increase the price, I want to withdraw from China Charity Federation Amazon branch, whoever loves to roll, whoever rolls it, 's price increase journey is finally kicked off with an appeal Prologue .
2. Start to increase prices
When entering the peak season in the second half of the year, Amazon Group's online products in the United States began to show an upward trend. Judging from the latest data, began in July, the price of e-commerce in the United States has continued to inflate, and the price of online goods in July 2021 has also risen by 3.1% over the same period in 2020.
From the Adobe Digital Economy Index report, it can be seen that in the past few years from 2015 to 2019, the overall price of online goods in the United States has been relatively low. The price of will drop by an average of 3.9% every year, but I did not expect that this year's data will show a fairy reversal.
is July,Among the 18 known online product category data, 9 categories of products have clearly seen price increases. Among them, the price increase of clothing, over-the-counter drugs and sports goods is the most significant, with clothing alone increasing by 15.26%. The prices of other items have also seen a slight increase, which has been in a downward trend in previous years.
It is understood that in order to support such price increases, offline physical stores in the United States have also encountered purchase restrictions. Faced with pressures such as rising labor costs and increased product demand, it can be appropriate. Pass on to consumers. Therefore, for offline products sold, prices will generally increase by 3.5%~4.5%, of which household items will increase by 4%~8%, and pet products will increase by 5%~11% .
Now some Amazon sellers said: Appropriate price increase will not affect the order volume too much, "Hot-selling products have risen by nearly a dozen dollars, and the order volume is also rising. , Until now it has been sold out, the boss has now rushed to send a batch of goods out by air."
3. Is the price increase really desirable?
After a wave of price increase operations, many sellers also reported that: after the price increase, the order volume has fallen more, and the seller needs to find a price balance between sales and profit. It sounds like this wave of operations is a bit uncomfortable.Is it because the business fails or is it the rice?
It turned out that in the environment of rampant low prices, in the face of numerous calls for price increases, it is actually self-evident in the price increase group, so someone must take the lead in increasing prices. Unexpectedly, after the top seller tried to increase the price for a few days, he actually lowered the price again. What happened?
What I did not expect is that no matter how the environment changes, low-price sales are still the mainstream. After the price increase storm started, there are still sellers who found that the TOP1 discount of a certain category is full, and they are doing some 0 yuan shopping and warming activities. and the product has 60% off outside the site, there are also 20% coupons and 30% promotional coupons inside the site, which is really breathtaking.
If this situation is achieved, it will be difficult to turn things around even if the price has started to increase. Consumers of the same brand must still want to buy at a low price. For an industry such as cross-border e-commerce, there is actually no difference. This is also the powerlessness of every cross-border person.
With the gradual decline of platform dividends, cross-border export sellers have begun to enter the Red Sea market. After , competition has become increasingly fierce. Whether you choose refined operation or branded operation,All should start to explore a better way. After all, the homogeneity of competitive profits is already pitifully low, so it may be that the current price increase is only a drop in the bucket for solving the problem.
Conclusion
In fact, in the current market environment, not only Amazon sellers, but also many factories, internal volume is common in all walks of life of. is just that as the price war continues, when some sellers exit the market at a loss, more and more people in the industry realize that after all, the price spiral is not a way out and it will be difficult to land.
Looking back at the origin, there are two reasons for this phenomenon: one is insufficient resources, and the other is insufficient resources. balance is destined to be out of balance. To truly solve these problems, it will involve deeper industrial upgrading and fair distribution.
In short, on the avenue of Amazon, if you want to develop for a long time, you need to cultivate your own products both now and in the future. is able to gain a foothold in the market only by doing fine control and keeping a long-term view.
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