A few days ago, a salesman who just entered the cross-border logistics industry at the beginning of this year said that from the time he entered the industry to the present, he has not completed a single order, and he has been receiving a basic salary of over 4,000 every month, but the consumption in Shenzhen is very high, and he can no longer carry it. .
Not only newcomers, but even senior logistics practitioners who have been in the industry for a long time have expressed that they are out of stock this year. Many cross-border e-commerce companies have been “empty” when they “sweep” the office buildings around the company to develop new customers.
The survival of logistics companies is closely related to the seller's business. It can be seen that the life of cross-border sellers is not easy.
Cross-border sellers' store sales plummeted collectively
Recently, many Amazon sellers have said that this year's store sales have plummeted and repeatedly hit new lows, and they have not seen it at all.
In the Tucao army, the sales of many sellers have dropped by at least one-third, and there are not a few who have suffered orders to be cut in half. However, contrary to the dwindling orders, sellers' advertising data has been all the way up.
"Since March, sales have dropped by half , Acos has gone from ten to fifty , and his head is bald."
" Advertising up 30% cpc , sales down 1/3 ."
"It has been very bleak in May, sales have been cut in half, and advertising money has not been spent at all ."
"You have ACOS, at least it means that the advertisement can still be billed, and when I open the advertisement ACOS every day, it is a bar, numb."
Judging from the above-mentioned situations of sellers, this year's cross-border e-commerce off-season seems to have come very early. There are even sellers who joked: Have you been prosperous this year?
You know, in previous years, Amazon’s peak sales season was from March to May, after which sales declined steadily until July and August entered the off-season. However, this year's Amazon doesn't seem to have gold three silver four, and even the off-season is a little earlier than it used to be.
The off-season is ahead, or is the market shrinking?
For the current situation, people can't help but wonder, is it really early in the off-season? What are the reasons?
Involution is still serious
To this day, some categories on Amazon are still heavily inbound. A seller of auto parts complained: the peers are crazy about invoicing, the price of the same product has plunged by 10 dollars (more than that) , and there is an exposed cpc of 2 dollars +.
In addition to auto parts, price wars in categories such as keyboards and lighting are also continuing, and many peers are still clearing inventory at low prices .
Severe inflation overseas
In the United States, commodity prices have been rising for several quarters in a row , resulting in a decline in consumer purchasing power, and online shopping spending has naturally decreased; in Europe, affected by the Russian-Ukrainian war, fuel costs have soared , and online sales and order volumes have plummeted slip , etc.
Online shopping boom gradually cools down
Although e-commerce sales in the U.S. reached $975 billion over the past twelve months, U.S. e-commerce sales in the first quarter of 2022 grew by only 6.7%, according to Marketplace Pulse research. This was the slowest growth rate since 2009.
Conversely, offline retail spending in the U.S. has grown faster than e-commerce over the past four quarters.
In addition, according to data from Brick Meets Click and Mercatus, total U.S. retail e-commerce orders fell by 5.8% in April, and the repeat purchase intention rate of online shoppers fell by nearly 3% in April.
Amazon in 'excess crisis'
In addition, judging from the current state of Amazon's operations, the impact of the shrinking market can also be felt.
By inquiring on the semrush website, it can be found that compared with half a year ago, Amazon's overall traffic has dropped by 1/4. At the same time, according to data from Similarweb, compared with the data in March and April this year, the total number of visits to Amazon dropped by 100 million.
Not only that, but a person familiar with the matter broke the news a few days ago, saying that the total number of Amazon packages has dropped from 75,000 to 50,000 or even less.
Recruitment of Amazon warehouse workers has also been suspended, and many employees currently have nothing to do or even take arbitrary vacation time.
It is understood that in the second half of 2021, in response to the growing FBA workload, Amazon added 270,000 related jobs. Today, the consumption power of European and American people is weakening, and Amazon has to face the problem of excess labor.
At the same time, Amazon's warehouses also have problems with overcapacity. Amazon is considering subletting at least 10 million square feet of space and possibly even terminating the lease, according to people familiar with the matter.
In addition, some industry insiders said that the stocking and shipment volume of this year's seller's membership day promotion hit a new low in several years. The logistics shipments of various logistics companies from April to May generally decreased by 30%, and some companies even exceeded 50%.
Looking at the various signals released by the cross-border e-commerce industry this year, in today's unfavorable market situation, for sellers and friends, survival is more important than profit, ranking and sales. As long as the store can continue to operate, there is still a chance to make a comeback.