In the early years of cross-border e-commerce, it was a vast blue ocean.
Simply distribute goods and put products on shelves in batches, and you can issue orders stably.
A large number of self-employed individuals and small factories have easily made their first pot of gold by taking advantage of cross-border e-commerce.
However, in the past three years, the rules of the cross-border e-commerce industry have been completely rewritten, and the entire industry has undergone earth-shaking changes.
First of all, the tightening of platform rules has become a major problem faced by small and medium-sized foreign trade merchants.
Accounts that distribute goods in large quantities are banned in batches, and behaviors such as illegal infringement and false distribution are no longer feasible.
The platform has strengthened supervision and put forward higher requirements for product quality, intellectual property rights and other aspects.
This puts merchants who rely on extensive distribution of goods into a difficult situation, and they have to re-examine their business models.
Secondly, the downgrade of consumption in Europe and the United States has also had a huge impact on small and medium-sized foreign trade merchants.
The sales of low-priced white-label products continue to decline, and consumers pay more attention to the quality and brand of products.
In this case, if small and medium-sized foreign trade merchants still adhere to the previous low-price strategy, it will be difficult to gain a foothold in the market.
In addition, fluctuations in shipping freight and exchange rates have further compressed the profit margins of small and micro foreign traders.
The rise in sea freight has increased the cost of goods, while the instability of the exchange rate has made merchants face greater risks during settlement.
These factors have made the operation of small and medium-sized foreign trade merchants more difficult.
Amid the great waves, there are only two clear paths left for the small and medium-sized foreign trade merchants who remain.
The first is to produce high-quality vertical single products, delve deeply into subdivided niche categories, and create its own small brands.
By focusing on a specific field, we can deeply understand the needs of target customers, provide high-quality goods and services, and accumulate overseas customers who will repurchase stably.
This model no longer relies on massive distribution and volume, but focuses on the quality and brand value of goods.
The second path is to transform into an independent website + social media to attract traffic.
Get rid of the constraints of a single platform, independently control customer resources, and avoid the involution of the platform.
An independent website can allow merchants to better display their brand image and product features, attract traffic through social media and other channels, and attract more potential customers.
This model requires merchants to have certain marketing capabilities and technical support, but it also provides merchants with greater room for development.
The extensive foreign trade model that relies solely on poor information and transportation and listing has completely come to an end.
Foreign trade is no longer an outlet for making money, but has become a traditional business with refined operations.
Small and medium-sized foreign trade merchants need to continuously learn and innovate and adapt to market changes in order to survive and develop in the fierce competition.
Interactive question: Can my friends who are engaged in cross-border e-commerce still make stable profits now?
