Giant companies can lower prices through channels and subsidies, but startups cannot afford long-term consumption. The entry of giants has caused the cross-border industry to fall into a worsening price war prematurely. Start-ups are subject to too many factors. The supply chain is being built, operations are still weak, funds have not yet been secured, and overseas expansion has not yet occurred.
Although, in the industry cultivation period, the market is large enough, leaving many opportunities for the growth of start-up companies, and many companies have also found their own place. The disadvantage is that for retail, a business field that emphasizes scale effects the most, the threshold for new entrants is extremely high. In addition, online traffic is monopolized, and the cost of attracting traffic is extremely high. The industry average customer acquisition cost of cross-border e-commerce has reached 100 yuan. The lack of profit-making links has caused a fatal blow to the company’s inability to make its own blood.
It is estimated that the traffic cost of entrepreneurial online cross-border e-commerce generally accounts for 20% or even higher of GMV. JD.com claims a comprehensive gross profit margin of 12% for all categories, and even Costco’s gross profit margin does not exceed 15%. %. The economic downturn, capital winter, flow traps, heavy transnational supply chains and policy uncertainty mean that giants or “unicorns” with ample “surplus” don’t have to worry about survival.
Novices without good equipment have to survive in the melee. How to play this game? Just ask the God of War for help and rely on a professional team. Tian Ji must make dangerous moves when racing; otherwise, he can only stick to the big tree. If you want to be an industry disruptor, you must risk your life just for a try. In the end, you will find that staying alive is the most important thing.