For many sellers, Amazon is no longer an asset-light business. Certification, taxation, stocking, logistics, warehousing, inventory, etc. are closely linked, and any failure in any link may affect normal operations.
Industry insider "Foreign Trade Woman Xiahui" revealed that recently in a 15-person Amazon startup company in Guangzhou, five bosses blamed each other and fought each other in the office because of the problem of unsalable stocks of pressure balls. The scene was very embarrassing.
It is not easy to accurately grasp the rhythm of stocking. In the past one or two months, the timeliness of the first logistics process has accelerated, disrupting the stocking plans of many sellers. Due to the centralized arrival of goods, the suppression of goods and category price wars have been staged successively. Due to the excessive stocking before, some sellers are still working hard to clear their inventory, and there is little replenishment, and the factories and freight forwarders that cooperate with them are unable to sit still.
Several pieces are sold daily but thousands of pieces are in stock, and the sellers are in a mess
Recently, the timeliness of shipping has accelerated significantly, which is good news, but for sellers who are used to shipping schedules of about two months, it is confusing.
A seller lamented that the time limit for the first journey is too fast, and the last journey is also fast. The estimated 50-70 days for ordinary ships now arrive in 25-30 days. Similar situations are very common. In order to quickly withdraw funds, the seller's products in the category have started to reduce prices. " There is an auction that sells for 89.99 US dollars all the year round , and the daily sales volume is about 30. Now there are more than 3,800 in stock, and three can be sold. It's been a month , storage fees and IPI are under pressure, and it's already on sale at $ 74.99 . "
Another seller is also in the same situation. Because the shipping schedule has been too stable recently, the stocking of one of its variants has arrived at the same time, and he can only hope that the inventory will be cleared by selling at a low price during the big promotion.
In addition, there are also sellers who actively replenish a large number of products after seeing that a certain product is selling in stages, hoping to complete the creation of explosive models. However, after the goods are in place, the order volume often plummets, and even faces the embarrassing situation of a single digit a day. Under the accumulation of inventory, the product quickly became a slow-moving product from a quasi-explosive product.
Overall, many sellers have significantly reduced their stocking volumes in the past two months. " There was a lot of shipments in March, and it felt a little wrong in April, and I began to reduce shipments. From May to now, there are only a few shipments. " " I haven't shipped the whole month of May, and the inventory pressure is huge. " The sellers said.
Sellers have reduced shipments, and suppliers and forwarders are in a hurry.
Before this, most sellers found suppliers to take the initiative to order, and the factory was not worried about not having customers. But now the situation has turned sharply. This week, a factory that mainly supplies cross-border e-commerce sellers found a small editor, hoping to introduce seller customers to it, "This year's sales volume is not very good, it has decreased by about half compared to last year, and I want to Expand your business through channels.”
At the same time, a freight forwarder asked the seller: Why is there so much less shipment this year? Did you find another company to ship it? It's ridiculous. Due to the decrease in overall shipments and the lack of empty containers, freight forwarders have begun to develop new customers through various channels. Sellers can receive several calls every day, and the wind of buying goods at low prices is gradually blowing in the market.
In fact, there are two reasons for the decrease in sellers' replenishment. One is that the sales situation is not good, and the other is that there is still redundant inventory to be digested, and it is necessary to stock up carefully. This is especially the case with the big sellout.
Miscalculation of the situation, big sales start to clear summer products in May
"Foreign trade woman chivalrous wisdom" has a deep feeling. In previous years, June was the peak sales season for summer products, and sellers stocked up according to the estimated sales volume. However, this year, the demand in the European and American markets has declined. The summer clearance came earlier than before. Many big sellers started to clear their inventory in May, even waiting for member days not.
"There is a lot of inventory, and it can't be sold. According to the current sales volume, summer products can't be sold out until winter," she said. The inventory of summer supplies is accumulating. Now that it has just entered June, many big sellers have begun to deploy autumn and winter products and start to promote Christmas products. This rare phenomenon is unbelievable.
Under normal circumstances, when the sales volume of big sales is high, it will naturally invest a lot of money in inventory, which is relatively reasonable. For example , in 2021, Anker Innovation’s revenue will exceed 10 billion yuan for the first time. As of the end of the year, its inventory amounted to 2.06 billion yuan, accounting for 24% of its total assets.
But the reality is that many sellers have to face the headache of "excessive inventory".
Last year, Xunxing, the parent company of the price chain, had a cross-border e-commerce revenue of 550 million, but a loss of 9.88 million. One of the reasons was that the inventory increased by about 94 million. In order to expand the layout of new stores and new products, the price chain purchased a large number of goods to prepare for the peak season, but the sales in the fourth quarter were lower than expected due to fierce competition. In addition to the original inventory, its inventory at the end of the year nearly doubled year-on-year, and the inventory turnover rate was 1.88 times.
After the title incident, Youkeshu's ability to sell products normally was limited, and the inventory backlog was serious. According to the inventory impairment test, its parent company, Tianze Information, made a provision for inventory depreciation of about 771 million yuan for cross-border e-commerce business inventory. By the end of 2021, Youkeshu has a total of 7 categories of goods in stock, including health care products, electronic products, clothing, shoes and bags, and toys, with about 11.43 million items and a book balance of about 640 million. However, after dealing with a large number of inventory discounts, a tree has solved the serious backlog of inventory in the first quarter of this year.
In the industry, inventory backlog is a common problem in sellers' operations. It not only takes up a lot of capital, but also leads to a continuous decline in inventory value, forming a gap in the company's profit loss. It is imperative to handle inventory reasonably.
Extract inventory value and expand cash flow
Obviously, a large amount of inventory will put a lot of pressure on capital turnover, but now, the inventory lying in the FBA warehouse can also win cash flow for the seller.
A few days ago, China Construction Bank | Doufangdai was officially launched (hereinafter referred to as "Doufangdai"). This solution is empowered by the cross-border financial cloud of Dowsure (hereinafter referred to as "Dowsure"), enabling cross-border sellers to obtain one-stop pure online, large-amount cross-border financial services.
For Amazon sellers, Doufangdai is very practical:
Turn inventory pressure into credit assets in seconds, with a monthly payment of 100,000 yuan and a maximum loan of 300,000 yuan. In the peak season for sellers to stock up in advance, whether it is by sea or air, the time required for early warehousing will consume several months of cash flow for sellers.
Taking into account these pain points, Doufangdai, based on the original store operation evaluation model and based on the FBA inventory situation in the past period , helps sellers to increase credit and convert inventory pressure into credit line assets, so as to obtain cash flow for sellers. Battery life. After the inventory is converted, the maximum loanable monthly payment amount is 3 times.
Take into account pure online and large amount. Doufangdai product online application can be completed in only four steps (binding store, credit approval, locking account, and immediate withdrawal). The intelligent operation guide is detailed and considerate, which greatly improves the efficiency of cross-border sellers from application to payment. efficiency.
Doufangdai products support a maximum amount of 10 million, allowing sellers to complete large-amount credit approval online.
State-owned big banks directly lend, pure credit loans, safe and worry-free. The "asset-light" model of cross-border e-commerce is destined to be unable to solve the urgent needs of sellers by simply using the mortgage credit model. Through technology empowerment, Dowsure enables banks to grant credit to sellers based on store operations without any collateral. Banks lend directly without any handling fees, allowing sellers to travel lightly.