Four factors determine whether you have a ticket to cross-border e-commerce

Four factors determine whether you have a ticket to cross-border e-commerce

Is there still a chance for newbie cross-border e-merchants to get in on the ground floor in this year’s situation? First, the answer: there are opportunities in every industry, whether it’s cross-border e-commerce or domestic e-commerce, or self-media short videos. The ultimate thing to look at is personal resources and ability.

Okay, seriously, break down this question. When you ask whether there are still opportunities in foreign markets, what are you asking? First, what is the current state of the foreign market, and is the purchasing power still there? Second, is there much competition in cross-border e-commerce, a high success rate, and can you make money?

Four factors determine whether you have a ticket to cross-border e-commerce

Let me answer the first question first: what is the current state of the foreign market? The answer is:

  • The status quo is good.
  • The epidemic has not had an enormous impact on the overall economy.
  • The effect on the product lines varies.

Some are cool, like outdoor products; some are hot, like kitchen appliances, depending on the characteristics of your products and user groups. For foreign trade, the most significant impact is mainly on the traditional foreign trade industry. Part of the product line orders plummeted, B-end large customers casually canceled an order, leading to the factory cash flow emergency, and funds could not run over excellent. But for the C-end market, the impact is relatively not so significant because the volume is small and scattered. Cross-border e-commerce selling is, after all, a long-term business that relies on market demand. The change in the epidemic mainly affects the total market demand, and the shift in supply and demand affects the price. Like kz this wave, the collection is less than demand, and the price soared. For outdoor products, supply is more significant than demand, and prices fall sharply. But you say if the epidemic doesn’t end, life won’t go on? It doesn’t. Eventually, the balance will return. At the height of the epidemic, people were on edge, and there was an overall drop in sales, probably around 20-50%. After the epidemic, there was another period of solid pressure followed by a chopping day where sales jumped by 20-50%. It is now stabilizing, showing the impact of

1. an increase in traffic share from online consumer channels and enhanced online shopping habits.

2. an overall decrease in demand for some categories such as outdoor travel goods and an increase in demand for home kitchen and gardening products.

3. Live video emerged as a windfall. Such as, the TikTok user volume soared, and the Amazon live streaming feature was recently launched. These three points are the same as in China. The only slight difference is that Europe and the US have opted for herd immunity to combat the epidemic due to the nature of their populations, but this does not have a significant impact on life. The second wave of money in the US is about to start again; those who should chop will continue to do so, and those who don’t have money will still not buy if you tempt them anymore. To make the fastest profit in the short term, it depends on what product you choose (cost/profit) and how the track your product is in (market demand/competition intensity); grabbing the windfall certainly has the opportunity to earn a wave, such as household appliances (handheld hoovers) / home fitness equipment (fascia guns), upstream factory friends to the news, hot products, orders skyrocketed. But if you can’t catch the wind, then get down to business with what you have and layout some products that are currently in demand or are expected to grow in the future, such as baby/pet/travel products. In my personal opinion, the economy will eventually show an upward trend no matter how it is built.

The second question: is there much competition in cross-border e-commerce, and is the success rate high?

 The second question: is there much competition in cross-border e-commerce, and is the success rate high? The answer is: that there is a lot of competition, but slightly less than domestic e-commerce. China’s products are low-cost and playful, and the number of people breaking into cross-border e-commerce is still relatively small compared to the household sector. However, domestic and foreign e-merchants have their benefits, as people’s preferences differ from region to region. Due to a more familiar environment, the domestic e-merchant selection part/and resource interface is relatively more convenient. The success rate depends on the size of your competitive advantage and your resources and capabilities.

The main factors involved in cross-border e-commerce are: product selection (30%) + supply chain (20%) + platform (20%) + operations (30%). The product is the track, which determines the size of the competition in the market and the height of the ceiling. The supply chain determines the quality of the product/profit margin and affects the future development space. The platform determines the size of traffic. Operations determine the monthly cash flow and payback cycle.

There are opportunities to enter the game of any of the above four points, any point of advantage. If it is a little not dip, either you find someone good at helping you do this, you are responsible for the layout, when the boss; either you do the money plate, when the investor; or you go to a medium-sized company to learn a half a year, run through the process, learn how to do the selection or operation, when the staff; either do not think …… in short, a little, down to earth to do their own The thing that you are good at, specialize in doing accumulation.

 The first is the selection of products                                                                            

Four factors determine whether you have a ticket to cross-border e-commerce

 . If you constantly dig the blue ocean market, the demand is significant /, and profit is considerable, but the competition is a slim product line. That is, you are a 90-point selection. You can not need to know very much about operations. You need to grind the product, create a good link and upload it, write a brighter picture/description, and brush up on the comments; your product can quickly go up. The natural attributes of the product and the highlights to attract users, lying single, need to follow up after the sale can be. In other words, do a 60-point operation, the basic process to get smooth, not to make mistakes, on the line. The team is dedicated to digging up products with a monthly net profit of at least 50,000, and the small group does a fine job with a few products to make a profit. The core idea of the team’s digging is hot keyword combinations + targeting local sellers. The only problem with solid product selection and weak operation is that once this market is discovered by sellers who know how to operate. It’s only a matter of time before they are found, so they need to keep digging into the market to do incremental work

Second: supply chain

Four factors determine whether you have a ticket to cross-border e-commerce

The advantage of supply chain resources is that the factory has a high degree of cooperation and can negotiate the billing period, and the subsequent production capacity can keep up. If the factory can negotiate the billing period, it is equivalent to borrowing money for free for you to play; the cash flow pressure will not be too big as long as you have confidence in the product and can quickly trial and error/quickly start the volume, you will be able to empty the glove. Quality supply chain resources can guarantee capacity and help you make it first after raising the demand to catch the wind. They can even assist in developing the product together and provide some industry data. They may even be willing to enter into a partnership with you and invest money to let you play. However, if you have supply chain resources, you still need to know something about product selection and operation to maximize the benefits of market analysis and promotion. But if you are mainly biased towards product selection and process, the supply chain is a piece of the relationship that can be subsequently cultivated. Instead, it is more important to catch up on the time spread during the pre-promotion period. The first time and factory cooperation, generally are first paid in full. So on the subsequent volume, the factory’s willingness to cooperate will also increase; at this time more suitable to talk about the billing period.

Third: the platform

Four factors determine whether you have a ticket to cross-border e-commerce

The platform determines the total flow. If you can grab some potential new platform to pursue the number of customers and flow of time to enter the game, then during this period, crazy shop, grip the platform traffic, and platform together with the growth of each take. Such as TikTok, a circle of friends to do content handling has made several millions of people. The platform needs content, and you happen to be able to provide content. Like when Wish first came out, we mainly shop every month; simply a number can also have 10w of revenue. The platform depends on chance; some platform strength is big, some platform just out of the process is not perfect, and the pit may also be more. Recently Facebook shop was launched, perhaps a small windfall, interested may wish to pick a pick, may be able to find business opportunities. If you can’t catch the wind, it doesn’t matter; you can choose according to your needs. Shopify / Amazon / eBay / speed sell / wish / lazada / shop / Etsy, there is always one for you. Like I mainly do the European and American markets, Amazon accounts for 50% of online sales, is the largest proportion of sales platform, and is also the platform I am most familiar with. In my case, I will choose it.

Fourth: operation

Four factors determine whether you have a ticket to cross-border e-commerce

Operations generally go with the platform, but the logic of functions is similar are traffic + conversion. An excellent (90 points) operation, no matter how serious the homogenization of the product, can find a way to push it up, push the explosion, the conversion rate, and traffic to the extreme. The strongest melon is not sweet, and the most vital product costs money. Here we need to consider the initial investment costs and the return cycle. If it is big money, then even the price war can be consumed by the market. This is also the more common way to play the big sales. The replicability of the operation is vital; you only need to know more to make 70-80 points can be 20% of the operational content to make 80% of the effect. So big sellers prefer to recruit new people, low cost, the pursuit of execution. That small sell words need to be more refined, how to do the conversion, how to do traffic, promotion in several stages, each stage to do what things, to achieve what purpose, what resources are needed, resources can be obtained from where, these preliminary need to consider clearly, calculate a good account, with the most efficient and most cost-effective way to do up the product quickly. The flow is mainly divided into natural traffic (keyword ranking), paid traffic (station advertising), and platform traffic (platform activities and recommendations); conversion is to do link optimization, through the study of user psychology, set the conversion path. There are many ways to play; get one, all have a play. If the operation is vital, it needs to be complemented by significant funds or specific selection ability. You will be invincible if you have a robust process and a strong product selection. The majority of my friends around me currently belong to this kind.

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