Foreign trade export e-commerce is considered a type of e-commerce development. In recent years, foreign trade export e-commerce has continued to develop with the strong support of the country. Now many sellers are pouring into the field of foreign trade export e-commerce. So from the seller's perspective, what are the aspects of foreign trade export e-commerce that are prone to losses?
1. Inventory loss due to overstocking, I think this is the biggest loss point
Many export e-commerce companies used to adopt a buy-now-sell model and had very little inventory, so they developed a habit of ignoring inventory management. However, when the company's sales scale grew, they found that returns, stocking, inaccurate overseas warehouses, etc. caused a large amount of inventory, occupying a large amount of the company's funds without realizing it. They just knew that they were doing such a big business, why were they not making money? They only made a lot of goods and fixed assets, but the cash in the account did not grow. It was very miserable! Little do people know that without management in this area, a large amount of capital occupation will lead to inefficient capital turnover, which will naturally absorb a large amount of profits.
2. Lost goods in logistics
This should be ranked second. If any foreign trade e-commerce company says that it has never lost goods, I will never believe it. The reasons for losing goods are so strange and difficult to explain, because many times it is a gray channel itself, and they will lose your bag without any negotiation. This will result in huge losses for foreign trade e-commerce companies, as re-shipping is necessary, and it will take manpower and resources to operate.
3. Loss of customers leads to loss of initial promotion costs, which requires continuous investment
There are only two reasons for losing customers: 1. The service on your website is really not satisfactory and the experience is too bad. International logistics is poor in itself, but if the service attitude is poor or even there is no service, then basically customers will vote with their feet. 2. As more options become available and more people do the job, there will naturally be loss, or at least diversion. We know that the biggest cost of cross-border e-commerce is the promotion cost. We have invested huge amounts of money to gain customers, but they have no stickiness. They come and go, and the money we spend does not get saved, which is a pity. This is a bottomless pit! E-commerce companies need to work hard here to reduce losses and save costs.
4. High talent mobility leads to high costs for talent training and trial and error
The cross-border e-commerce industry is an industry with very frequent talent flow. In fact, everyone in the industry now knows what everyone is worried about. It is nothing more than that the entry threshold is low and anyone can do it. It is always better to have one less competitor than one more. But things are different now. You still have to treat your talents well. The competition in cross-border e-commerce is no longer a question of whether you can do it or not, but a stage of competition in refined operations. In the future, it can be seen that the competition will be in the stage of financial operation capabilities. You have to have talent in reserve, only then will you have a future. The reserve of suitable talents can save enterprises a lot of expenses.
5. Unplanned price war
Fight to the death, no tactics! The price war in cross-border e-commerce can be described as gunpowder smoke everywhere. In my personal observation, it is not as intense as that in the Chinese market, but there is a big difference. The price war in foreign trade e-commerce is a chaotic battle without tactics, a melee, and a random battle in which you kill a thousand enemies and lose a thousand of your own. In this way, everyone loses, and the result is that the market is confused. If we study the price wars among some Chinese brands in the mainland, we will find that their tactics are very targeted and skillful. It is always easy to get information about low prices, but it is always difficult to buy low-priced products. As long as you get the hang of it, you will definitely be led to buy high-priced products. We found that no matter whether we are a cross-border e-commerce platform or a self-built website, we can see that the characteristic of price wars is that there is no lowest price, only lower prices. There are also very few restrictions and shopping guides. Often in the end, the boss grits his teeth and thinks that he can’t lose any more money and he has to stop!
6. Account investment is wasted
Platform accounts, PayPal and other payment platform accounts, all of these accounts require money to maintain. Many people don’t know when they will violate the rules and their accounts will either be frozen or blocked. Now the management is becoming more and more strict. Sometimes I have to watch helplessly as the accounts I have worked so hard to cultivate are thrown into the water.
7. Exchange rate losses
Of course, many companies now make money directly from here. They set up their own wallets and make money from them every day, but how many companies operate this way? Your mood can only fluctuate with the fluctuation of exchange rate. As more US dollars are collected, the RMB appreciates every day, and e-commerce companies worry about how to convert US dollars into RMB every day.
This is the end of the knowledge about foreign trade export e-commerce in this issue. If you want to get more information about foreign trade export e-commerce, please pay attention and we will continue to answer you~