Severe internal competition and falling profits! How cross-border e-commerce sellers can break through

According to foreign media reports, since 2016, more than 2,000 new sellers have joined Amazon's 20 global markets every day.

As a gathering place for cross-border e-commerce sellers, China has countless new sellers.

As the number of sellers increases, competition becomes fierce. In order to gain an advantage in the competition, sellers begin to "show their talents", increase advertising and promotion expenses, and lower product prices, just to gain the upper hand in the fierce competition.

In fact, the result of involution is not what the sellers wish. The editor has communicated with many sellers and learned that as the degree of involution among sellers deepens, the profits of each seller are getting thinner and thinner, and business is becoming more and more difficult.

In response to this situation, many sellers have begun to find alternative ways to break through the internal situation.

Solution 1: Doing logistics service industry

As an important part of cross-border e-commerce, international logistics and transportation has always been a "battlefield".

As restrictions on third-party e-commerce platforms increase, many sellers have begun to engage in logistics business while selling goods.

As a big seller in the industry, Savi has generated revenue from logistics services as early as 2018. Data shows that since 2018, the proportion of Savi's logistics service revenue has been increasing year by year.

Not only big sellers, but also some small and medium-sized sellers have begun to enter the logistics service industry, intending to break out of the predicament of small order volume and find new areas to make money.

Solution 2: Multi-channel layout

Many sellers initially only sold on a single platform. As the degree of internal competition among their peers deepened, they began to switch to different platforms and implement a multi-channel layout strategy.

A seller revealed that compared with the Amazon platform, the threshold of Walmart's online e-commerce platform is higher, which can eliminate some competition for sellers.

Therefore, many qualified sellers have begun to switch to other e-commerce platforms such as Walmart.

Solution 3: Explore different markets

Some sellers, after their business has cooled, think that it may be because the market they are in is not popular enough, and start consulting their peers about new markets in order to switch to them.

A few days ago, when the editor randomly interviewed sellers, a home furnishing seller said that he wanted to find a fellow seller in the European market to consult about the relevant situation of the European cross-border e-commerce market, because he wanted to switch from other markets to save himself from the dilemma of few orders.

Solution 4: Clearing out the warehouse

Affected by the epidemic and restrictions on third-party e-commerce platforms, some sellers have begun to seek a way out, hoping to retreat from the increasingly fierce competition.

Some sellers finally chose to clear out their inventory and withdraw from the increasingly fierce competition in the industry.

Due to the support of supply chain and favorable policies for going overseas, although cross-border e-commerce competition is fierce, new sellers are emerging in an endless stream. If cross-border e-commerce sellers want to stand out among their peers, they must recognize the situation and be more thoughtful and adaptable.

Cross-border e-commerce companies

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