Detailed explanation of cross-border e-commerce negotiation strategies and techniques

In cross-border e-commerce activities, negotiation is not only a key link in realizing transactions, but also the cornerstone of establishing trust and cooperative relationships between both parties. This article will explore strategies and techniques in cross-border e-commerce negotiations from multiple perspectives to help readers improve their negotiation skills.

1. Understand price positioning and strategy

Price is one of the core elements of negotiation. When faced with customer doubts, we should not only start from the price, but also delve into the reasons and value behind the price. For example, a price difference of 2% may be because we provide better services; a price difference of 5% may be due to a unique production process; a price difference of 10% may be because we use higher-grade materials; and a price difference of 20% indicates that we are in a good relationship with our customers. The positioning is not a level. By understanding these logics, we can explain price differences more specifically and demonstrate where our value lies.

2. Analysis of external environment

Cross-border e-commerce negotiations need to fully consider external environmental factors, including politics, economic policies, tariff barriers, laws and regulations, etc. In addition, before negotiating, you should collect extensive information about the other party, understand the opponent’s intentions, and formulate corresponding countermeasures. For technology-based industries, such as SEMI and large semiconductor industries, you should refer to the background knowledge of technical personnel to conduct technical assessments of negotiating opponents.

3. Goods trade negotiations

Goods trade negotiations mainly focus on commodity quality and price. For heterogeneous products, in addition to price factors, brand effects, consumer preferences, etc. should also be taken into consideration. When negotiating, attention should be paid to “anti-dumping”, “countervailing” and other regulations to ensure that the contract is legally binding.

4. Product specifications

In physical trade, specifications are an essential negotiation content. The product specifications of customized products are particularly strict, and it is recommended to increase the participation of professional designers in the negotiation team. Quantity is also an important condition for transactions, and many companies have price regulations that favor “larger quantities, better prices.”

5. Ultimatum strategy

Use the ultimatum tactic under certain conditions, such as when the negotiator is in a powerful position or has tried other methods. However, this strategy is risky and should be used with caution.

6. The use of silence

Silence is not a deadlock in negotiations, but a tactic. Silence prevents the other party from understanding the negotiator’s true psychological activities, making it impossible to launch an effective attack. Increasing the number and time of pauses during the conversation can allow the other party to take the initiative to say something.

7. Strategy of seeking common ground while reserving differences

The purpose of negotiation is to narrow differences and reach agreement. The main task of negotiation is to analyze the main demands of each party and find a way to satisfy each party’s demands. During negotiations, always look for common areas for cooperation and expand the scope of cooperation or projects.

8. Pretend to give up and leave at any time

In negotiations, the party with more variables or changing factors can have greater choice. This trick will only work if the other person feels that your leaving or giving up is a loss to him.

9. Praise and congratulate each other

After the negotiation, praise the other party for their superb negotiation skills and try their best to safeguard the interests of the other party’s company. Compliment the other person that the product or service is truly top-notch and worth the price. Congratulations to the other party for winning this order and becoming a long-term partner.

10. Emotional communication

Learn to put yourself in someone else’s shoes, figure out the other person’s psychological changes, and gain insight into the other person’s psychological needs. Find the other person’s points of interest and focus on them during the conversation. During the negotiation process, you must not only be able to speak, but also be able to listen.

11. Ice-breaking topic

There are many topics used to break the ice and start negotiations, which generally include thanking the customer for meeting, greetings, and compliments. Topics about the weather or seasons, topics about hot news, topics about celebrities, etc. Start with “self-effacing” and introduce one’s own negotiators, one’s own production, operation, financial status, etc.

12. Issues to consider in advance

Issues that need to be considered before cross-border e-commerce negotiations include: Is the understanding of the customer comprehensive? How to greet and start the conversation after meeting? What questions do customers focus on? How should we answer these questions? What difficulties and deadlocks may be encountered in negotiations? How to resolve it? What is the negotiating style of the other party’s negotiator? What are his hobbies? How to deal with it? If the other party does not agree with our first option, what other alternatives or alternatives are there?

13. Negotiation strategies

Cross-border e-commerce negotiations require the formulation of negotiation strategies, such as opening strategy, inquiry strategy, quotation strategy, concession strategy, counterattack strategy, deadlock-breaking strategy, “red face and white face” strategy, return strategy and silence strategy, etc.

14. From passive communication to active guidance

As a foreign trade salesperson, you should realize that prices are dynamic and not static. Factors such as order size, production schedule, transportation method and payment method will have a significant impact on the price. Foreign trade salesmen should flexibly use these factors to proactively guide customers and companies to negotiate.

Through the application of the above strategies and techniques, cross-border e-commerce negotiators can not only improve their negotiation skills, but also better establish long-term cooperative relationships with customers.