The operation direction of cross-border e-commerce is gradually changing. With the continuous increase in the cost of traffic on Amazon, more and more sellers are beginning to pay attention to off-site traffic diversion and seek to seize market share through diversified development. In this highly competitive industry, sellers must recognize the current trends and opportunities, as well as how to effectively layout and operate cross-border e-commerce businesses.
First, with the diversification of social and information tools, the segmentation of traffic channels has become the key. In Europe and the United States and other countries, people’s social and information channels are fragmented and tribal. Competition from Facebook, Tiktok, Google and other military strategists is more intense, and Chinese cross-border e-commerce sellers should also pay attention to the segmentation of traffic channels. By establishing a brand image and promoting products on different social platforms, sellers can bring more external traffic to the Amazon platform, increase exposure and sales.
Secondly, entering the e-commerce platform of small languages is another way to develop. Some sellers consider changing their doors and relying on “cost-effectiveness” to enter mature cross-border e-commerce markets such as Southeast Asia, the Middle East, and South America. These markets have a huge user base and potential consumer groups, attracting more and more sellers to enter. The rise of emerging platforms such as Lazada and Shopee provides sellers with more opportunities to expand the market by displaying products and promoting them on these platforms.
At the same time, more and more sellers are starting to develop their own e-commerce platform businesses in small languages. This diversified development strategy can help sellers reduce their dependence on Amazon, broaden sales channels, and reduce competitive pressure. In recent years, cross-border platforms such as Lazada and Shopee have launched investment policies for Chinese sellers to attract them to open up the market. In addition, in the US market, Walmart has also begun to open investment to Chinese sellers. Compared with Amazon, Walmart has more sales, which has led more and more sellers to choose to sell on its platform.
In addition, the rise of independent stations has also become a strong competitor to Amazon. More and more sellers choose to build their own independent e-commerce sites to enhance their brand image, increase traffic, and improve user experience. Independent stations have become the first choice for many cross-border e-commerce sellers, and some people assert that in the next three years, every cross-border e-commerce needs to have an independent site, and this site is often for a specific vertical market. In the next five years, the market share of independent stations is expected to rise from 25% in 2020 to nearly 50%.
However, the market competition of cross-border e-commerce will become more intense. Therefore, it is very important to seize the initiative and high ground in the operation direction of cross-border e-commerce. In the future development, funds and enterprises will continue to pour into this industry. Sellers need to find the market segments according to their own business characteristics and carefully choose the operation direction that suits them.
With the outbreak of the epidemic and the growth of online consumption, the overall operation of independent stations has increased rapidly. It is expected that by 2025, the market share of independent stations will increase from 25% in 2020 to nearly 50%. This shows that independent stations have become an indispensable part of cross-border e-commerce. Therefore, sellers should fully realize the competitive advantages brought by independent stations and increase investment and operation of independent stations. Having an independent station can not only enhance brand influence, but also establish direct contact with consumers and provide a better shopping experience.
In the operation direction of cross-border e-commerce, diversified development is also one of the very important strategies. Considering the market characteristics and consumption habits of different countries and regions, sellers should look for small language e-commerce platforms suitable for their products and brands. Entering mature cross-border e-commerce markets such as Southeast Asia, the Middle East, and South America can use local resources and channels to reduce operating costs and risks and gain more sales opportunities. At the same time, cooperating with cross-border platforms and taking advantage of their investment policies and market promotion efforts can also help sellers expand their business scale.
In addition to paying attention to off-site traffic and expanding new markets, sellers should also focus on improving product quality and user experience. Only by achieving excellence in products and services can consumers’ trust and loyalty be won. At the same time, actively participating in social media interactions and marketing activities is also an important way to increase brand exposure and influence. Sellers can formulate corresponding marketing strategies for user groups on different social platforms to establish a closer connection with consumers.
In the competition of cross-border e-commerce, focusing on specific market segments is also an effective strategy. By digging deep into the market demand of specific industries or products and developing and promoting products in a targeted manner, direct competition with large competitors can be effectively avoided, and sales conversion rates and profitability can be improved. At the same time, establishing an exclusive relationship with a specific market segment can improve user loyalty and word-of-mouth communication effects.
In general, the operating direction of cross-border e-commerce is gradually changing. Sellers should pay close attention to market trends and changes, and find the right direction for layout and operation according to their own situation. Paying attention to off-site traffic diversion, entering small language e-commerce platforms, owning independent sites, improving product quality and user experience, and focusing on specific market segments are all operational strategies that sellers can consider. In the fierce market environment of cross-border e-commerce competition, sellers need to constantly innovate and adjust, and seize timely opportunities to stand out in this industry.