Everyone still remembers that when Easter was approaching last month, Amazon sent two easter eggs to sellers: many categories are now 0 yuan to buy explosive orders, FBA added 5% fuel and inflation surcharges, which made the majority of sellers for a while. was caught off guard.

The above two things must be known to everyone. Just a few words about the subsequent impact: the abnormal surge in large-scale orders is mostly an Amazon bug, so you don’t have to worry too much, a giant like Amazon will definitely know the bottom line, and there will be no account What are the sequelae; it's the fact that the FBA fee has risen every so often, which really makes everyone's operating costs and funds sound the alarm again.

Therefore, today I will talk with you old irons about the topic of corporate profits.

In the past few days, several big sellers in the circle have released their 2021 financial reports. Among them, the performance reports of the three big sellers, Anker Innovation, Superstar Technology and Lege Shares, have an astonishing commonality: revenue is growing, net profit Profits are falling. Take Lego, a big home seller, for example, its revenue in 2021 has increased by 47.95%, but its net profit has dropped by 14.93%.

Source of the 2021 Annual Report of Lege Co., Ltd.: www.cninfo.com.cn

However, looking back on last year's situation, it is reasonable for the profits of various cross-border sales to decline. Looking at the cross-border e-commerce business environment and the situation of the upstream and downstream industry chains in 2021, rising raw materials, high freight rates, intensified industry involution, and fluctuations in foreign exchange rates have become the four mountains lying on the road of cross-border sellers making money. It is difficult to guarantee the profits of big sales, especially small and medium-sized sales. The decline in profits has become the epitome of the vast number of Amazon sellers in 2021.

Frankly speaking, the general trend of the entire Amazon industry this year is similar to last year, or even more severe. "The supplier's circle of friends shows that raw materials are rising every day, and the cost of product procurement is rising, and even packaging and cartons are rising…" I believe everyone has heard such complaints.

Not long ago, I went to visit some friends' companies and found that there were a lot of vacant workstations in the office area. In order to survive, the company had to increase revenue and reduce expenditure. In 2022, for all Amazon veterans, the company's cash flow management will undoubtedly be a top priority. In particular, the FBA boutique model has become an asset-heavy business. Small and medium-sized sellers often have to pay suppliers and freight forwarders before they can get their money back.

Right now is the peak stocking period for Prime Day this year, which is another severe test for the cash flow of Amazon veterans. So for an Amazon company, to ensure the operation of its core business, how much cash flow does it have to be "safe"? According to the current logistics timeliness and payment cycle, as well as the situation I have learned, the seller must ensure that at least 3 to 6 months of cash flow is on hand, which is a relatively safe range.

For sellers with cash flow difficulties at the moment, the ideal way to solve the capital problem is of course to extend the billing period with suppliers and freight forwarders, but frankly speaking, it is not easy to do this in the current environment. So what should Amazon's old iron, who is in urgent need of capital turnover in the short term, do? Here, I recommend you to get to know Amazon's official credit partners, such as Dowsure. Dowsure is the world's leading digital API platform for cross-border e-commerce. In 2017, Dowsure Technology pioneered cross-border e-commerce insurance in China. In 2019, through its API technology and advanced models and algorithms, it will cooperate with banks to launch digital financial products in 2019, providing faster, more convenient and safer funding solutions for cross-border e-commerce sellers. Doushabao has helped tens of thousands of merchants, covering tens of billions of cross-border e-commerce GMV.

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