Message: | Why is there only price war when there is no intermediary in cross-border e-commerce? Is there no selling point and no reason to buy? Chinese hydraulic valve manufacturers can't play cross-border e-commerce without their soft power and hard work.
I have a friend. His factory produces leisure chairs. Three years ago, he started a cross-border e-commerce business of leisure chairs in Amazon. After several months of accumulation, he told me that the business was stable. Full containers were shipped to overseas warehouses. The average monthly sales volume was 1,000 pcs, the overall profit was 30%, and the flow was stable. I curiously went to his online shop to see, "There is no middleman making the difference, only my leisure chair", occupying a prominent position. I told him at that time that this model could not last, and he thought I was jealous of him.
Yesterday, he complained to me. On September 1, a home furnishing big seller started to sell the same leisure chair at a 35% price reduction. As a result, his sales volume was only 50 pcs, and his traffic declined seriously due to the price reduction of the big seller. He had no choice but to reduce the price by 35%. Sell one now and lose 5 yuan. He is hesitating whether to continue the price war? If you don't, the traffic will disappear. If you do, there will be no bottom.
Why did I tell him that this model would not work. Because I was impressed that it was just a brick mover, without the selling point of leisure chairs and no reason to buy, burning advertising to drive traffic. Is this cross-border e-commerce? With few or no peers, you can make big money with your eyes closed. As long as there is a peer, we must fight for the price.If a bunch of peers are here, the money earned should be vomited back slowly.
|