Many people in cross-border e-commerce in emerging markets are still using one method of operation, but they are actually wrong.
Nowadays, emerging markets are changing a lot, and there are four completely different competition models in four regions. It will definitely not work to use one set of tactics to run all markets.
Let’s talk about the first Southeast Asia, which used to rely on keyword search rankings to distribute products.
But now the core change is that the traffic entrance is shifting from search to content.
Shopee is promoting short video portals, TikTok Shop is strengthening content distribution, and search traffic is being diverted.
In the past, it was possible to place orders by relying on keywords, but now it becomes increasingly difficult without content exposure.
Moreover, traffic costs are rising, rules are tightening, warehousing and distribution costs are rising, logistics risk control has become stricter, return costs are shifting to sellers, and pre-sales are restricted.
More importantly, the platform is supporting local sellers, and the traffic of cross-border sellers is being compressed.
Therefore, in Southeast Asia, what we compete for is not product distribution but content capabilities + localization capabilities.
To put it bluntly, it will be increasingly difficult for people who don’t know how to create content to do so in this area.
The decline in order volume for many people is actually not because the product is not good, but because the traffic entrance has been changed.
The second Eastern Europe + Russia, many people feel that the market is recovering and orders are indeed picking up.
But the core issue is not the order, but whether the goods can be delivered stably.
Ozon is already raising the bar, focusing on logistics capabilities.
The reality is that routes change frequently, delivery times are uncontrollable, and sellers are forced to increase inventory.
The battle here is not about who sells better, but about more stable logistics and delivery.
Because the supply itself is unstable, the market prefers the combination of affordability + cheapness, so you will see an obvious characteristic: extreme price sensitivity, low-price clicks are much higher than those of brands, and the premium ability is very weak.
Therefore, what is at stake here is logistics capabilities + supply chain stability.
The third South America, South America is the easiest place to make money, but it is actually very tiring. There is demand for orders, but it is getting harder and harder.
The problem lies in the account period.
Customers are demanding longer credit terms, installment payments, and reduced inventory risks. The result is profits but cash outflows.
Many companies are not losing money, but are being held back by cash flow.
Coupled with CKD split procurement, after-sales capabilities are required to be bound by long-term cooperation. It is no longer selling goods, but providing a complete set of services.
Therefore, what South America strives for is trading ability, account period + service. People who do not know how to control the account period can easily become more passive.
The fourth Africa, this region is the simplest and most cruel, and price determines everything.
The characteristics of customers are strong price pressure, long payment period, and low configuration.
Brand is not important here, nor is differentiation. The only important thing is cost, so what Africa strives for is ultimate cost capability.
You can see clearly at this point that this round of emerging markets has not become more difficult, but has changed from a single style of play to multi-ability competition. Different markets test completely different things.
The traffic capacity of Southeast Asia is reflected in content, the shipping capacity of Eastern Europe and Russia is reflected in logistics, the transaction capacity of South America is reflected in account period + service, and the cost capacity of Africa is reflected in price limit.
Many people do not do well not because the market is not good, but because their abilities do not match the market.
What you should think more about is which region is more suitable for the process in hand, which region are you mainly working in now, are you stuck in traffic, logistics, account period, price, or are you not aware of where you are stuck at all? You can discuss it in the comment area.
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