Tagged: online retailers

Behind the popularity of cross border E-commerce

After nearly two years of low ebb, cross-border e-commerce will finally usher in a turnaround in 2020.

 

“The epidemic still affected our exports. We had orders of more than 20 million yuan in December last year, which could not be delivered because of logistics problems. Although China Europe trains can deliver goods, they also face difficulties, mainly due to the lack of logistics service personnel, such as the low efficiency of unloading goods. ” Recently, song Zheng, chairman of the board of directors and founder of Goodchild group, revealed in an interview with the 21st century economic report reporter that the export trade accounts for about 40% of the company’s total sales. The epidemic situation has promoted the export of products as a whole and promoted the digitalization of enterprises.

 

It’s just a small miniature. On January 14, the General Administration of Customs released the import and export situation of China’s foreign trade in 2020. The data showed that the total import and export volume of China’s goods trade in 2020 was 32.16 trillion yuan, an increase of 1.9% over the same period last year. In the whole year, the import and export of cross-border e-commerce reached 1.69 trillion yuan, an increase of 31.1%; the total export value reached 1.12 trillion yuan, an increase of 40.1% over the same period last year; 2.45 billion import and export lists were checked and released through the customs cross-border e-commerce management platform, an increase of 63.3% over the same period last year.

Behind the popularity of cross border E-commerce

At the same time, the data of e-commerce platforms such as Alibaba international station and dunhuang.com also continued to improve. Wang Shutong, founder and chairman of dunhuang.com, said in an interview with the 21st century business reporter that the release of customs data confirmed the huge market space and high potential of the industry, and believed that it would attract more attention and capital and technology investment, which is a good thing for the development of the industry. At present, in the mainstream countries in Europe and the United States, logistics has returned to the previous level of the same period, even better than before. “It is expected that the cost of logistics and transportation capacity will come down in the first quarter, and these three months are the off-season of the industry. But it is difficult to make more judgments, because there is no way to make a clear judgment on the severity of the overseas epidemic. ”

 

Global “housing economy” demand breaks out

 

Covid-19, 2009, the United States, including WAL-MART, Taghit and best buy, announced that Thanksgiving Day was not open, and most of the cities in Sweden and Germany cancelled the Christmas market, too. In 2020, the new crown epidemic affected the city.

 

Consumers around the world are actively or passively transferring their consumption behavior to the online market, and the demand for “home economy” is in full swing. Cross border e-commerce platforms have become an important channel for consumers to purchase. Customs data show that in 2020, the export of notebook computers and other “home economy” products will reach 2.51 trillion yuan, an increase of 8.5%.

 

Industry data also confirm this trend. According to the data of Alibaba international station, the trading volume of the platform will increase by 101% in 2020, and the number of orders from businesses will double year on year. The top five industries in terms of sales volume are: machinery, home gardening, consumer electronics, beauty personal care, packaging and printing; the annual popularity of consumer electronics continues unabated, with a year-on-year increase of 145% in sales volume in November; the air purifier has become an export dark horse, with a year-on-year increase of nearly ten times in accumulated transaction volume from April to November.

Behind the popularity of cross border E-commerce

The data of dunhuang.com, a cross-border e-commerce B2B export platform, also shows that in 2020, during the period of “black five” and “net one”, the transaction volume of more than 35% of the commodity categories doubled year-on-year, and more than 50% of the commodity categories reached the annual peak; a large number of new buyers swarmed in, with a month on month growth of 68.7%; the average unit price of customers increased by 25.1% year-on-year; meanwhile, the French and Spanish markets also reached a consensus The highest daily transaction volume of the station was obtained.

 

Especially during the traditional shopping season, the trading volume of household products on the platform increased by 111% year on year, of which household finishing and cleaning products increased by 423%, festival party products increased by 166%, pet products increased by 85%, and kitchen products increased by 73%.

 

However, 2020 is not easy for Chinese businesses. In the first half of the year, the import and export of foreign trade was in a downturn as a whole. The growth rate of China’s total import and export did not turn from negative to positive until the third quarter, while the import and export of cross-border e-commerce grew against the trend. Customs data are “unexpectedly” hot. In the first three quarters of 2020, the import and export of Customs cross-border e-commerce management platform reached 187.39 billion yuan, which was higher than that of the previous year, with a significant increase of 52.8% year on year.

 

“Although we have encountered the problem of epidemic situation, after the epidemic situation in the first half of this year, even if overseas countries have encountered difficulties, we have passed on some experience, including that logistics belongs to the basic people’s livelihood, and will basically give priority to the development of basic people’s livelihood business. In the second half of this year, although there is a counterattack of the epidemic situation, the overall investment rate is much better than that in the first half of this year. This shows that overseas countries have also greatly improved and guaranteed their response to the epidemic. ” Wang Shutong analysis said.

 

Shipping logistics costs up 5 times

 

Li Kuiwen, spokesman of the General Administration of customs and director of the Department of statistics and analysis, said that as an emerging trade format, cross-border e-commerce showed signs of rising instead of falling during the epidemic period, becoming an important force in stabilizing foreign trade.

 

It is worth noting that in 2020, cross-border e-commerce will become the first choice for enterprises to carry out international trade and the pioneer of foreign trade innovation and development, with more than 1800 overseas warehouses, becoming an important node of overseas marketing and a new type of foreign trade infrastructure. Independent station and DTC have become hot words in the industry, focusing on the most market and capital, and also stepping out of star enterprises such as Anke and sheen. The mainstream e-commerce platform is gradually transforming to an ecological platform, and the ecological industry chain has become a trend, especially in logistics, capital chain and other links.

 

Affected by the epidemic, cross-border logistics in the air transport capacity, as well as overseas delivery pressure has increased significantly. To a certain extent, it also leads to the slow down of cross-border e-commerce platforms in the delivery time of overseas and local. It is understood that it takes about 23 days to reach the West Port of the United States, about 40 days to reach the east port of the United States and 30-37 days to reach Europe by sea. Compared with previous years, the delay was about 7 days. It takes about 28-35 days for the railway to reach the European station. Compared with previous years, the delay was about 10 days. In the second half of this year, the special line (air transport) to Europe and the United States will be put into operation in 15-20 days. Most of them are delivered overseas by post within 20-35 days. Compared with previous years, the delay is 5-10 days.

 

In addition, in terms of shipping capacity, there is an extreme shortage of shipping containers. Not only that, there is also a shortage of railway containers. Among them, shipping to Europe, the United States, rail to Europe, the container appeared “lottery” situation, resources are extremely scarce. Therefore, the whole logistics cost also has a big rise. Recently, the shipping container freight has broken through the historical extreme value, reaching more than five times of previous years, and the railway transportation cost has also increased by about 2.5 times.

 

Therefore, the platform side is also actively coordinating resources to ensure logistics services. According to a person in the cross-border e-commerce industry, large quantities of products are generally transported by sea or rail. Railway transportation only goes to Europe, and is distributed through Germany and Belgium, while sea transportation actually goes to the mainstream countries in Europe and the United States. Small goods, or those that the seller thinks have explosive potential, such as small household appliances, will be prepared by rail or sea to overseas warehouses, so as to shorten the delivery time. In the case that the buyer does not specify the logistics mode, the seller will also choose other logistics channels besides express delivery, such as special line, according to the level and quantity of their own operation stores.

 

At present, direct mail is still the main channel in B2C market. “The fastest air transport is certainly the most expensive, small and light goods, or goods that buyers require very high timeliness. They are willing to take air transport even if they spend more money. The whole market is still dominated by sea transportation and rail transportation. ” The source further disclosed.

 

Platform upgrade is imperative

 

With the recovery of trade in the second half of the year, booming orders in peak season and tight international transport capacity, a number of cross-border e-commerce platforms have combined five logistics modes of sea, land, air, express and multimodal transport to ensure the transport capacity of businesses. In the view of the industry, cross-border logistics is still a very big unstable factor, and it is very likely that there will be extreme situations.

 

This makes the operation ability of the platform also face a test. “We should not only solve the problem of accurately obtaining orders, but also ensure the smooth flow of international transportation, cross-border payment and other links.” Zhang Kuo, general manager of Alibaba international station, told 21st century business reporter that the platform has set up a set of global payment and settlement finance, customs, logistics and other full link cross-border supply chain system, which can provide one-stop intelligent solutions for small and medium-sized enterprises participating in international trade. It is equivalent to providing “water, electricity, coal” and other basic guarantees for the trade industry.

 

In his view, the epidemic situation is like a catalyst, which is bound to transform traditional foreign trade businesses into a new digital foreign trade track.

 

At present, small and medium-sized sellers with the goal of fast selling and fast selling generally choose to cooperate with the third-party overseas warehouse. With the opening of trading links and the inclination of resource policy, they can obtain greater price advantage. In addition, the real trade financing needs of enterprises in the industrial chain can also be met, and the overall capital flow in the industrial chain can be optimized. In early 2020, dunhuang.com cooperated with China Construction Bank to launch the first domestic inclusive financial credit product “e-commerce loan” for export-oriented cross-border e-commerce small and micro enterprises, which can provide a maximum loan line of 2 million yuan and a minimum loan interest rate of 4.5%.

 

Michael, a seller of outdoor cycling supplies, told the 21st Century Business Herald that through opening up the logistics bottleneck of Dunhuang online warehouse, he broke the restrictions from May to October in the peak season of cycling supplies, and realized the continuous growth of annual sales, with sales exceeding 10 million. “The third party overseas warehouse can only get through the logistics, but it is outside my whole trading system. Choosing the overseas warehouse of the platform is not only because of the platform endorsement, strong professionalism and compliance, but also because of the operational help it has received. ”

 

At present, through the “priority mail” service in cooperation with China Post, under the current situation that the air transportation is generally delayed for 5-10 days, Dunhuang can guarantee that the average time limit for going to the United States is 9-15 days, the delivery rate is 90%, and the average time limit for going to the United Kingdom is 15-18 days, the delivery rate is more than 92%. In the foreign trade industry, the time limit for Europe and the United States is generally 15-35 days.

 

Although the industry is still facing uncertainty, it is still a promising spring for cross-border e-commerce practitioners. Through global trade big data, the platform realizes the interconnection of all links of the industrial chain. On the basis of providing information, advertising and online transaction services for both the supply and demand sides, it also meets the opportunities of further upgrading and reshuffle in providing value-added innovative services such as logistics, financial services and e-commerce operation in combination with the upstream and downstream needs of the industrial chain. In the final analysis, the real competitiveness lies in the cost reduction and efficiency of the industrial chain.