Cross-border e-commerce has been in a rapid trend in recent years, and the country has also continuously introduced favorable policies. Cross-border e-commerce can be said to have national support within and dividends of the times. With the diligence and wisdom of Chinese cross-border sellers, the future is promising and the prospects are promising.
In Laogao Cross-border E-commerce Club , many members have a common feature, that is, domestic e-commerce has been doing for many years, feeling the crisis of the domestic market and traffic. They began to plan cross-border e-commerce three or five years ago. When the epidemic hit in 2020, their performance increased instead of falling, some increased by at least twice, and some increased by 10 times. What have these cross-border e-commerce masters done right?
0 experience is converted into cross-border e-commerce, and performance growth is 10 times
Before doing cross-border e-commerce, Mr. Xiao had been doing domestic e-commerce for ten years. From 2014 to 2018, Mr. Xiao's company showed 1-2 times growth every year. Until 2019, Mr. Xiao felt fear in his heart because she saw the platform's traffic expenses become higher and higher, the profits are getting lower and lower, the domestic e-commerce market competition is getting bigger and bigger, and the company's time and output ratio is not as good as before.
Mr. Xiao began to find a new way out and could continue playing on the track for 5-10 years. She chose cross-border e-commerce . Before choosing cross-border e-commerce, she also conducted evaluation and analysis. She found that she could slowly work hard and work hard by slowly exploring and improving, which is very consistent with her company's genes.
Of course, this is not the most important thing. Mr. Xiao attaches more importance to the market space that has not yet been developed, which means that cross - border e-commerce will have a relatively long life cycle.
After making the decision, Mr. Xiao immediately left Guilin and went to Guangzhou alone to rent an office to build a new team and a new platform. He spent 3 months preparing shops, applying for qualifications, trials, etc. Because the shipping cycle is relatively slow, it also takes time for the product to be shipped overseas.
With a little bit of exploration, the team is also slowly getting on the road. After understanding the situation, cross-border e-commerce will not be difficult. Not counting the preliminary preparations, Mr. Xiao officially made efforts in cross-border e-commerce in September 2019. Because the preliminary preparations were sufficient, the cross-border e-commerce business developed particularly smoothly, and the break-even was achieved in 4 months.
After breaking even, the epidemic broke out, and new opportunities in the crisis followed. Mr. Xiao’s cross-border e-commerce business reached more than 200,000 in February 2020. By December 2020, in a full 10 months, his performance reached more than 2 million, a 10-fold increase.
This result is quite gratifying. Mr. Xiao predicts that it may develop faster and faster in the future, because the current cross-border e-commerce is like Taobao, which is in a stage where it can grow exponentially every year. Mr. Xiao has 7-8 cross-border teams. In 2020, he only built one platform on Amazon. It sells the same products as domestic e-commerce companies, all of which are catering-related equipment, and are mainly sold to the United States and Europe.
Mr. Xiao said that the difference between cross-border e-commerce and domestic e-commerce is that domestic e-commerce focuses on operations and marketing, while cross-border e-commerce focuses on products and supply chains. If the supply chain cannot keep up, the product is not good and you die very quickly. Mr. Xiao emphasized that there are two red lines for cross-border e-commerce that must not be touched, that is, the red line for order brushing and the red line for infringement. As long as the company touches, it will die miserably.
For domestic sellers who want to do cross-border e-commerce, Mr. Xiao recommends: First, you must evaluate whether you can take some of your energy and focus on cross-border; secondly, whether you have real diamonds, which mainly refers to a good supply chain; secondly, whether you have enough funds and whether you have the mentality of slow work and meticulous work.
Only by evaluating which type of gene you have at the beginning can you decide whether to do cross-border e-commerce. For those who are agenda brands or distribution products in China, please do not come in because there is no core category.
In Mr. Xiao’s opinion, the group of sellers who are the same as her who are engaged in Taobao have advantages in transforming into cross-border e-commerce, because these people have mature teams, mature operational capabilities, and systematic operational thinking in domestic e-commerce. I was just not familiar with logistics, policies, and platforms when I started working in cross-border e-commerce. Once I got familiar with it, it would develop very quickly.
For five years, the performance has increased by 2-3 times every year
Like Mr. Xiao, Mr. Xie also feels that cross-border e-commerce will be a bigger blue ocean in the next few years, and made a layout in 2015. When choosing cross-border e-commerce, Mr. Xie had two considerations: the first is the ceiling, that is, the size of the market capacity; the second is the degree of market competition, and what position can he be in.
Mr. Xie feels that the cross-border e-commerce market is aimed at the whole world and has a large enough space. He can do cross-border e-commerce with the idea of domestic e-commerce, and confirms that there are advantages to transform into cross-border e-commerce, so he became one of the early people in East China to do cross-border e-commerce.
Mr. Xie also made a lot of preliminary preparations. The first preparation is to find people . Cross-border e-commerce is a separate project. You need to find the right person to do it. You don’t have to poach mature people or teams, but you have to build your own team. Mr. Xie also made preparations, training himself while finding someone.
If human affairs are solved, it is the choice of the platform . Based on the original home textile gene, Mr. Xie chose the Amazon platform and started cross-border e-commerce in 2015. This year is the sixth year. Mr. Xie's company has developed very fast, with a relatively large annual growth rate, and has doubled and increased. In the past five years, the annual growth rate has been 2-3 times.
Mr. Xie said that the epidemic has also boosted their company's performance. The foreign chain is relatively long, and uncertainties between countries and the entire international community will slow down the speed of changes in things. It will be no problem to do cross-border e-commerce for 5-8 years.
For domestic sellers who want to do cross-border e-commerce, Mr. Xie said that when entering the market, you must choose categories and platforms, and even the requirements for talents will be higher. Although the competition is not very fierce, the first wave of dividends has passed. E-commerce companies with their own advantages, whether they are product advantages or other advantages, now they still have a chance to build cross-border e-commerce.
The most important thing in doing cross-border e-commerce is talent. Mr. Xie summarized some of the experiences of those who have experienced it. The first point is that this person must be familiar with the rules of the cross-border e-commerce track, the attributes of the platform, the understanding of the entire chain, etc. Whether it is poaching people outside or cultivating them himself, they need to be familiar with them. The second point is more rigid, which is the language requirement.
Many sellers are worried about language issues. Mr. Xie said that there are requirements for English, but not everyone in the team must have good English. As long as some people can do things that need to be in English, it is enough. Mr. Xie also found that there is still a shortage of talents in cross-border e-commerce at present, because the industry's development is faster than talent growth, but he thinks that he will definitely catch up slowly in the later stage. The growth of talents takes time. Many universities have already opened cross-border e-commerce majors, and there is a process for talent supply, which is a normal phenomenon.
In fact, many sellers who do cross-border e-commerce have this discovery, that is, the talent supply and industry development path of cross-border e-commerce are the same as those of domestic e-commerce. The shortage will be eased at the beginning. The development trajectory of cross-border e-commerce in the past five years is very similar to the trajectory of domestic e-commerce in the first five years when domestic e-commerce was just starting. In the past two years, capital has paid more and more attention to cross-border e-commerce. Sellers who want to do cross-border e-commerce should be early rather than late. Cross-border e-commerce is still in the early stage of development, and you must step on the right track when doing business.
EN
CN
