Cross-border e-commerce procurement strategy: analysis of the entire process from product selection to cost control

The success of cross-border e-commerce is inseparable from an efficient product procurement strategy. This article aims to comprehensively analyze the key steps in cross-border e-commerce procurement, from product selection basis to cost control, to help companies better understand and implement the procurement process.

1. Basis for product selection

The quality of product selection directly affects product sales. When choosing products, companies need to consider the following aspects:

1. Market Capacity

• Number of consumers: Each product has its own fixed user group, and the number of different user groups varies greatly. For example, lipstick is mainly targeted at female consumers aged 18-60, while school bags are targeted at school students.
• Number of items: The number of items available affects the size of the market. As consumers continue to buy, the commodity market will continue to expand.
• Consumer purchase intention: It is very important to understand the needs of target customers. Enterprises can determine the specific needs of customers through surveys and other methods.
• Consumer purchasing power: Commodity price is an important indicator of consumer purchasing power. For example, the Eufy Genie robot on the ANKER e-commerce platform has similar functions to Amazon’s Echo Dot, but its price is lower and more in line with consumers’ purchasing power.

2. Competition

• Choose popular but less competitive products to reduce market competition pressure.

3. Profit margin

• Look for items that cost relatively less but sell at a higher price to ensure sufficient profit margins.

4. Resource advantages

• Combine your own advantageous resources to select the most suitable products for sale.

2. Procurement process

Product procurement is crucial for cross-border e-commerce companies. A complete procurement process includes the following steps:

1. Determine the required products: Make a list, including basic information such as product specifications and quantity.
2. Select suppliers: Choose suppliers with whom you can easily negotiate prices to reduce costs.
3. Market research: Research market prices and compare supplier quotes.
4. Sample inspection: Require suppliers to provide samples to ensure that the quality meets the requirements.
5. Orders and Contracts: Issue orders to suppliers and sign contracts.
6. Production Monitoring: Monitor suppliers’ production progress to ensure on-time delivery.
7. Inspection: After the supplier delivers the goods, the goods will be inspected in a timely manner and placed on the market after confirmation.

3. Responsibilities of purchasing personnel

1. Product Purchasing Specialist

• Responsible for formulating procurement plans, negotiating with suppliers, and ensuring normal supply.
• Regularly take inventory and deal with stranded, expired or corroded merchandise.

2. Product Purchasing Manager

• Have business negotiation, communication and coordination capabilities.
• Carry out macro-control and management of the purchasing department.

3. Purchasing merchandiser

• Assist purchasing specialists and managers to complete relevant tasks.
• Track product quality, sales and after-sales service.

4. Cost control

In the process of cross-border e-commerce procurement, both explicit and implicit costs need to be taken seriously.

Explicit costs

• Operating costs: including procurement plan preparation, management costs, etc.
• Express delivery costs: Choose appropriate transportation methods, plan routes reasonably, and reduce express delivery costs.
• Warehouse costs: Scientifically manage warehouses to reduce additional costs caused by backlogs.

Hidden costs

• Order processing costs: Reduce order processing time and improve efficiency.
• Stock-out costs: Avoid losses caused by insufficient inventory or supply interruptions.
• Inventory Overstock Cost: Reduce the risk of excess inventory.

5. The difference between e-commerce procurement and non-e-commerce procurement

The advantages of e-commerce procurement lie in larger procurement scope, more standard processes, more flexible business models and more scientific management methods. In contrast, non-e-commerce procurement faces problems such as poor information exchange, slow response to market changes, and vulnerability to interference from human factors.

To sum up, if cross-border e-commerce companies want to gain an advantage in the competition, they must achieve refined management in every aspect from product selection to cost control.