Analysis of the causes of fluctuations in cross-border e-commerce logistics costs and sales

In the field of cross-border e-commerce, high logistics costs and fluctuations in product sales are common phenomena. According to relevant research, cross-border e-commerce logistics costs account for 20-30% of the total transaction volume, which is much higher than the domestic express delivery industry’s logistics costs of less than 5%. The reasons for the high logistics costs of cross-border e-commerce mainly include complex processes, the impact of tax policies and insufficient resource integration.

Reasons for high logistics costs

1. There are many links and the process is complex:
   Cross-border e-commerce usually adopts two modes: direct mail or overseas warehouse. No matter which mode, multiple links are involved, including pickup, inspection, classification, labeling, booking, customs declaration and transportation, etc. These complex processes increase logistics costs.

2. Impact of overseas tariffs and regulations:
   Cross-border goods need to comply with the customs regulations of the destination country and pay relevant taxes. Changes in the international political and economic situation, such as the implementation of new tax laws after Brexit, directly affect the responsibilities and costs of related logistics companies.

3. Diverse transportation entities and lack of resource integration:
   Transnational e-commerce logistics involves a variety of transportation entities, including postal services, express delivery, freight forwarding and customs clearance companies. The lack of effective integration throughout the entire chain further increases the complexity of logistics.

External factors causing product sales decline

The sales volume of a product is not static, and external factors may cause a sudden drop in sales, including:

1. Lost of the golden shopping cart:
   When a competitor releases a new model, it may cause the seller’s product golden shopping cart to be taken away, affecting sales. Sellers are advised to monitor competitors and take necessary measures, including dealing with copycat issues.

2. Product listed as add-on:
   When low-priced products affect the sales of the original product, sellers need to consider adjusting their price strategy, especially for products close to $10, to avoid becoming additional products by raising the price.

3. Seasonal and holiday effects:
   Seasonal products will affect sales due to fluctuations in market demand, and holiday products will experience a surge in sales during specific holidays, followed by a rapid decline. Sellers need to pay attention to market changes.

4. The impact of medium and negative reviews:
   A product receiving moderate or negative reviews may result in a lower listing weight and reduced traffic. Sellers should actively handle negative reviews and improve customer communication and evaluation enthusiasm.

5. Lack of participation in promotions:
   If a product does not participate in flash sales or fails to attract influence from internet celebrities, sales may decline. Timely promotions can effectively boost sales, but after short-term traffic, product performance may decline again.

Reasons for Listing removal

Many Amazon sellers have noticed that their product listings have been suddenly removed from the shelves. The main reasons include:

1. Mischief or deliberate violation:
   Competitors may operate through malicious means, causing listings to be misjudged and removed from the shelves.

2. Consumer Complaints:
   Multiple complaints will result in poor listing performance, triggering system alerts, or even manual removal. In this case, sellers need to regularly monitor indicators and actively improve product quality and services to prevent the frequency of related complaints from being too high.

Through in-depth analysis of cross-border e-commerce logistics costs and sales volume fluctuations, merchants can more effectively respond to market challenges and improve overall operational efficiency.

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