Can cross-border e-commerce still be done? Specific situation analysis

How to do cross-border e-commerce has always been a headache for merchants. After all, it is relatively difficult to do cross-border e-commerce well, and it takes a lot of energy. Recently, a friend asked, can cross-border e-commerce still be done? Then next, let us analyze it for you.

Now many people think that cross-border e-commerce is a pitfall. Why? The reasons are as follows:

1. High pressure of stocking

The cycle from stocking to FBA is even longer, from raw material procurement, production, logistics, FBA, sales, and payment. What’s more terrifying is that trade sellers can negotiate with factories about the payment period, but individual sellers, who can they turn to? The financial pressure is huge!

2. Difficulty in product selection

"70% product selection, 30% operation", a good product determines more than half of your success, and the rest is supply chain and operation, all of which revolve around product selection. Regarding product selection, many export cross-border e-commerce companies have fallen into the following misunderstandings. First, choose according to the preferences and habits of the Chinese people; second, do not understand the cultural customs and habits of the exporting country; third, aesthetic differences; fourth, cultural barriers. Cross-border e-commerce is not a country, and the preferences of various platforms are completely different. Merchants can easily be limited to their own experience because they do not understand the local customs and culture of the exporting country and the aesthetic differences of consumers, and are unfamiliar with the product field, and cannot open their minds to expand more products and categories. For Amazon's platform that focuses on product quality, product selection should be more cautious, and the return rate of products with poor quality is high.

3. High probability of return

The return rate of FBA warehouses is particularly high, because the products shipped by FBA are handled and followed up by the customer service of the Amazon platform customer service. Different customer service staff have different levels of professionalism, and Amazon encourages returns, which easily leads to an increase in the return rate. Many sellers’ FBA warehouses have a lot of unsaleable products.

4. High operational risk

When individuals engage in cross-border e-commerce, not only do they lack operational experience, but they also have to guard against various competitors causing trouble, copying sales, posting bad reviews, malicious complaints, etc. Once there is a problem with the operation or the store is closed, the goods in FBA will become a burden to you, and it is easy to lose both money and goods.

5. High storage costs

More and more sellers are using FBA, and storage fees are rising. In this case, if your products don’t sell well, there will be a pile of unsalable inventory, and FBA will have to pay you expensive long-term storage fees! Moreover, a large number of unsalable products will affect the account index. If the index is too low, FBA will directly reduce your storage capacity.

6. Difficulty in resource allocation

After preparing goods, many individual sellers often find that FBA warehouses are not very flexible, especially when operating multiple accounts. It is very troublesome to prepare goods. Often one account is unsalable and another account is out of stock. It is also very troublesome to transfer goods and the timeliness is also very poor.

In fact, no matter what you do, it is not that easy. You have to go through some ups and downs. If you can persist in doing it during this period and overcome all difficulties, then the next step will be easy. After all, persistence is victory!

Recommended reading:

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