Cross-border e-commerce is very similar to the chicken game. First of all, you need to consider the landing point, that is, the market you want to operate, whether the platform is good, whether there are guns and ammunition; whether the logistics is convenient, whether there are cars and ships; whether there are many peer sellers, whether there are a large number of enemies… These are all related to whether you will win the chicken or the red flag in the end.
Obviously, in 2018, the European and North American markets are like military bases and air-raid shelters, with serious account suspension and VAT storms. If you are not strong enough to sell, it is a good choice to open up new platforms and markets.
The following are several places and gameplays that the author thinks are good.
1. Southeast Asia – Voldemort Mode
The Southeast Asian market has great potential, and platforms such as Lazada and Shopee have good traffic. There are also some overseas warehouses. Many sellers are entangled in whether to ship directly or from overseas warehouses, but they ignore the most down-to-earth logistics method in Southeast Asia, the COD model, that is, the cash on delivery model.
Because the payment method in Southeast Asia is not very developed, and the credit card ownership rate is not high, the proportion of freight forwarding payment has increased instead of decreased, and it is still the largest. If the seller supports the COD mode, it will undoubtedly get higher traffic, orders and conversion rates.
2. Australia – racing mode
The traffic of Amazon in Australia is bursting, and the traffic of eBay in Australia is not low. Especially with the testing and opening of FBA in Australia, and the increase of Australian dedicated lines and overseas warehouse service providers, many sellers are ready to move the boutique routes of Europe and the United States to Australia.
But I personally suggest that it is better to race like crazy and spread the goods like crazy. First, the competition in the subdivided categories of major platforms in Australia is still not fierce, and second, the current prices of Australian dedicated lines and Australian head-leg transportation are not low.
3. Middle East – Tianxuan Mode
The Middle East has always been a very controversial market with amazing purchasing power, but it is very unstable, and there is no big platform. Sellers want to enter, but can’t find a way in.
In fact, powerful sellers can choose to build their own websites, because neither Amazon eBay nor Ali Jingdong have shown any signs of involvement in the past two years, and there are no organizations that like to sue for rights protection and make trouble here.
4. Japan and South Korea – plug-in model
The Japanese and Korean markets are also a hotbed for cross-border e-commerce, but people in these two countries prefer local products and have a certain aversion to Chinese products, and their shopping habits are quite picky, especially in terms of logistics. I personally think that the plug-in model – the virtual overseas warehouse model is very good. First, there are currently many overseas warehouses in Japan and South Korea, and the prices are not bad. Second, the Japan-South Korea dedicated line has a very fast timeliness. The most important thing is that it can make consumers think that it is a local product. It is worth noting that although e-commerce in these countries is not yet developed and there is still a chance to make a few quick bucks, most of these countries are developed countries, and the ultimate pursuit must be shopping experience. Overseas warehouse shipments and FBA are the ultimate model.