In recent years , has overseas consumption really shifted online ? Where is the new way out for the survival of traditional foreign trade ? Is there really a good opportunity for transformation now? For these questions , let a set of real data answer you first:

In this context, consumer behavior in Europe and the United States has also changed:

Nearly half ( 43.2%) of the respondents indicated that they would shop more online2 ! In terms of age group, 48.4% of millennials said they would continue to shop more online, and among the more "traditional" 55-74 year olds, 35.8% said they would buy more online Buy Buy Rank 3 :

In terms of purchasing tendency, they said that if the frequently purchased brand is out of stock, 40.55% 5 of consumers said they would be more willing to try similar products from less familiar brands in the future. As consumers turn to online shopping to meet their daily needs, consumers in various countries are also more willing to buy new brands:

It can be seen that while consumption is shifting to online and there is huge demand, consumers' acceptance of new brands is also an opportunity point that Chinese sellers cannot ignore. During the epidemic, foreign trade manufacturers with online orders have become the lucky ones that their peers envy. With a certain percentage of online customers, the volume of orders can remain stable, and they can directly transform into factories that do cross-border business, and even increase their sales instead of falling . Everyone in the industry understands that cross-border is a new way out. Seller Z, who started his business in shoe foreign trade ten years ago and entered Amazon to achieve transformation, said:

"There are many traditional foreign trade factories around me who want to transform, transfer offline business to online, and change from OEM to their own brand."

Below, let us share from 5 sellers whose main business is in different categories (covering clothing and shoes, small household appliances, outdoor furniture, etc.), the necessity and benefits of the transformation of these traditional foreign trade enterprises.

*Note: In order to protect the seller's information, the real company information and brand name will be hidden in the following experience sharing. Seller Z (mainly in shoes), seller S (mainly in outdoor products). The quotations in this article represent the seller's personal views and do not represent Amazon's views.

The enthusiasm and urgency of foreign trade enterprises for transformation is not only forced by the current dire foreign trade environment, but also because of the fact that the "early birds" who took the lead in the past two years because of the transformation of cross-border successfully forged a new path and can get rich returns. For the traditional foreign trade industry, at least four major benefits can be seen in the transformation of cross-border:

Benefit 1 Increased profit margins

Sportswear seller A on Amazon

Cross-border e-commerce directly sells to 2C terminals, and without middlemen, it reduces a layer of intermediate costs. Taking our own experience in the clothing industry as an example, if we do foreign trade OEM orders, we can get 15%-20% gross profit margin, and if we do cross-border orders, it may rise to 40% gross profit margin .

Just transferred to Amazon to do outdoor furniture seller G

Exporting to the United States, there are still wholesalers in the United States, and the final price increase in the hands of consumers is 6-10 times. And Amazon 's offer is only three times the cost, which is too much discount compared to offline, and is very competitive .

Benefit 2 Increased capital turnover

In traditional foreign trade, it usually takes two to three months or even three or four months to collect payment, while cross-border e-commerce can return payment once every two weeks , and the money can be quickly recovered when the goods are out, which can greatly ease the pressure on cash flow , reduce financial risk.

Sportswear seller A on Amazon

This year, traditional foreign trade has generally encountered the problem of fund collection due to the epidemic. Some goods that were originally released in April and May were interrupted by the epidemic, and they may not be able to collect money. In the end, it is very likely that a small company will go bankrupt because of this money. On Amazon, you can receive money for each item sold, and the frequency of payment is stable.

Benefit 3 Reduce business risk

One of the reasons why foreign trade factories are encountering difficulties is that the traditional sales channels are too single. Overseas products and brands mostly use the core technology in the country and the end production in China. However, the dilemma that the local cannot survive during the epidemic has prompted the United States, Europe, and Japan to introduce policies to attract enterprises to return their production to the local area, and then accompany overseas consumers. With the trend of behaviors moving online, Chinese foreign trade enterprises participating in cross-border business can help traditional foreign trade industries expand sales channels, strengthen competitiveness and reduce business risks.

Benefit 4: Entering the blue ocean territory of the low-competition e-commerce battlefield

The epidemic has accelerated the transfer of commodity transactions all over the world to online, and if we want to transform e-commerce, the intensity of competition in different regions is quite different. Compared with the “excessive competition” of the domestic e-commerce environment where the domestic e-commerce is already closely linked , the cross-border e-commerce facing overseas is really a “blue ocean” with a broader market, but the number of competitors and the degree of competition are significantly lower than domestic ones. Seller S estimates based on his years of experience that, assuming that domestic e-commerce stagnates, it will take at least five years for cross-border e-commerce to reach the current level of fierce competition in China.

Seller who specializes in outdoor products

Domestic e-commerce and cross-border e-commerce, in fact, is that the threshold for cross-border e-commerce is lower . Domestic e-commerce is too mature, with many ways of playing , changing rapidly, endless competition, and high store opening costs. Cross-border e-commerce The environment is actually relatively primitive. As long as the language barrier is overcome, it is relatively easy to do cross-border e-commerce.

In fact, as a global leader in the OEM field, China's foreign trade manufacturing industry has natural advantages in the transformation of cross-border:

1 Cost/price advantage

Small home appliance manufacturer seller H , who has been operating for several months

In the past, the world-class cost management of China's foreign trade foundries controlled the ex-factory price to the extreme, allowing overseas orderers to obtain most of the profits, while leaving only a small part for themselves. Today, this has become the advantage of the cross-border transformation of the foreign trade industry: if the overseas offline product is 20 yuan, if the factory directly sells cross-border, the same 20 yuan can get a higher profit margin than the buyer, the same profit rate, you can compete at a lower price . This cost model integrating industry and trade has its own cost competitiveness , which is especially suitable for new brands to enter the market and grab market share.

2 Product advantages

Under the rigorous training of overseas brand orders for many years, China's foreign trade manufacturing industry already has strong product manufacturing capabilities, and its manufacturing technology, quality control capabilities, and flexible production capabilities have all reached a high level, and they are also familiar with benchmark products in the industry. degree and in-depth knowledge. As the actual executor of implementing cutting-edge design into manufacturing, first-class foreign trade factories usually have certain R&D capabilities, especially the application-oriented R&D at the end of the manufacturing chain that is closest to the finished product. After "running your own business by yourself", with technical capabilities and rapid market response, products can also have the opportunity to quickly gain recognition from overseas consumers.

In the eyes of many foreign trade-to-cross-border sellers who are already "on the way", Amazon is a good entry point for foreign trade enterprises to enter the cross-border business, which can provide a very good transformation environment and practical help for foreign trade enterprises: Amazon's global site provides foreign trade enterprises with mature With abundant market resources, Amazon’s global store offering tailor-made transformation support for Chinese manufacturing companies that intend to transform into cross-border e-commerce .

not necessarily either

Traditional foreign trade and cross-border e-commerce coexist

Amazon currently has more than a dozen sites around the world open to Chinese sellers , with 300 million+ active accounts and 150 million Amazon Prime members . As long as your product is good enough, there is enough room for it. But there may also be foreign trade people who feel that it is a bit risky and a pity to give up so many years of business to test the waters in an unexplored field when there is still money to be made in the business. However, after more than ten years of OEM shoe production, seller Z, who now uses Amazon's business as the main source of sales, does not think so .

Seller Z whose Amazon business is the main source of sales

Amazon is an e-commerce brand and has credibility and influence among consumers. The good reviews from consumers on Amazon can help your products to be widely recognized by C-end consumers. The operation on Amazon can even drive the foreign trade factory in the opposite direction. B-end sales, because overseas B-end customers will also check the C-end data of products on Amazon.

He said that when negotiating orders with veryxin overseas small B customers, he would also open Amazon to show them the above price, and then compare and calculate the wholesale price based on Amazon's price. Customers will often trust Amazon's Information can also help facilitate order transactions .

Amazon global store full support

Traditional foreign trade factories seize the wave of e-commerce

I believe that many traditional foreign trade companies have already been paying attention to cross-border e-commerce and Amazon, and want to transform and expand their business, but they may be stumped by the "big problem": how to start with zero operating experience? Is my product really suitable for Amazon? How does internal team management fit in? How to solve logistics and transportation problems? How to optimize the production chain? …………

Amazon Global Store: These problems, you can find solutions in Amazon Global Store ! Three business highlights to help you quickly transform:

▼ Tailor-made, manufacturer transformation 101 plan . Combined with your industrial advantages, give sufficient guidance and business layout optimization support from the aspects of market, product selection, logistics, etc.

▼Exclusive manufacturer service to help you quickly open a store and operate. One-stop export cross-border logistics and warehousing return and exchange solutions, as well as an exclusive localization team to teach you how to open a store.

▼ Brand guidance to help you build your own international brand. Amazon brand registration, brand protection, etc., help you build your own brand, establish competition barriers, and grow rapidly.

Cross-border e-commerce is bound to be the next outlet for China's foreign trade. Amazon has spurred the vigorous growth of e-commerce. Now is the time for the wind. For traditional "foreign trade cafes" who are well versed in overseas sales opportunities, trying to open a cross-border e-commerce business may be an opportunity to quickly achieve transformation and gain long-term development.

Data Sources:

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