You can feel that it is getting harder and harder to do business now. There are more and more small sellers, and the growth rate is relatively getting lower and lower. Based on these two points, what does this indicate? It shows that the high-speed development period of this industry is almost over, and this period is very dangerous. Both large and small sellers are very dangerous because no one is prepared. The real risks are definitely not how much inventory there is, whether sales can grow, whether the account is at risk, or whether there are any problems in management. These are also risks, but relatively speaking, they can be solved. When industry risks appear, it is impossible to change them by one’s own strength. What should we do? Core competitiveness is very important. To cultivate your own core competitiveness, you must have the ability to survive in a harsh environment.
Excuse me, where is the core competitiveness? As far as the current cross-border e-commerce is concerned, everyone knows that they need to be “small and beautiful” and build a brand. “Small and beautiful” products, good products, have a good supporting effect on the brand. It is a very good choice to start building a brand with “small and beautiful” products. I personally most admire the “small and beautiful” e-commerce model. Through this form, the brand is established, and with the support of the brand, it is gradually transformed into a brand owner.
Cross-border e-commerce is nothing more than a sales channel. After building the brand, you can do cross-border e-commerce or not. At this time, you can adopt a multi-channel form and flexibly adopt it according to market changes. Use multiple strategies. This strategy revolves around the brand and serves the brand. If it is beneficial to the brand, do it, and if it is not, give up. This is the model I most recommend. Many large sellers now have a large number of SKUs. In my opinion, except for exercising supply chain management capabilities, there are not many core things about massive SKUs.
When many e-commerce platforms become very large, they gradually care less about the consumer experience. When executing, they often deviate from the founder’s wishes and begin to pay too much attention to the interests of the platform itself, such as growth rate, profit margin, etc., thereby ignoring the fatal link of customer experience. The so-called success or failure is also due to Xiao He, this is the truth. In the game between online and offline, there may be a situation where cross-border e-commerce will tend to be saturated after a few years of medium-to-low-speed development, and its market share will no longer grow. However, what people are worried about is far from these. The biggest problem is that the development speed of cross-border e-commerce is well-known and has a great reputation outside the industry. If the growth rate slows down, people outside the industry will not know it until three years later. After a large number of “novices” pour in, it will be difficult for them to gain a foothold in the e-commerce industry. At this time, they will use various methods to survive, even unscrupulous means. In this case, can there still be profits? As we all know, the net profit of cross-border e-commerce is The profit margin is only a few percentage points. Some very small sellers have a higher profit. The average profit of a certain size is about 5%. When market competition becomes more and more fierce, the average order value will drop sharply and the marketing cost will rise sharply. At this time, where is the profit? So everyone must be prepared for danger in times of peace and think more about where tomorrow and the future are. Of course, the above is about e-commerce with target markets in developed countries. If it is in developing countries, it is a little different. Their e-commerce has just started and there are still many years to go. In addition, their consumption capacity is limited and they require low-priced products. At this time, a large number of low-priced SKUs will also be a very good choice.