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"As a seller in a cross-border market, I get anxious every time there is a big sale." On the eve of Prime Day, with the frequent adjustments of Amazon platform rules, the uncertainties faced by cross-border sellers in going overseas have increased dramatically, and along with this, product sales have also fallen into a bottleneck period. Sellers' sales continue to plummet on the eve of Member Day It is learned that since the beginning of this year, affected by the uncertain economic environment and continued inflationary pressure, many sellers have not yet escaped the growth slump. According to survey data, as of June 30, more than 70% of sellers had a decline in sales compared with the same period last year. Not only that, with Prime Day approaching, Amazon sellers are seeing a more severe decline in orders: "The market has been very weak in the past month. I don't know if it's because everyone is waiting for the membership day, or because of the impact of other platforms entering the market." "It has indeed declined. Let's not talk about sales volume, just look at traffic. The five main keywords of one product have all dropped by 50% compared to the same period last year." “The day before the event, there were zero orders for high-priced products.” “Amazon has had some traffic problems recently. Sales in all categories have dropped by 30%-50% for several consecutive months.” The reason for this, according to our observations, is that in addition to factors such as high inflation and weak consumption, the traffic space allocated to each Amazon seller is shrinking due to the fierce competition both on and off the site. On the one hand, with the increase in cross-border players, competition has become increasingly fierce, and many sellers have been caught in a price war with sellers on the same platform; on the other hand, in order to compete with Amazon, not only large overseas retailers such as Walmart, Target, and Best Buy have launched online and offline promotional activities benchmarked against Prime Day, but Temu, a Chinese overseas platform that has emerged in recent years, has also launched a series of promotional activities during this period. Taking Temu as an example, some sellers found that Temu had launched a wave of promotional preheating for the US Independence Day on July 4, offering discounts of 10% off on multiple categories and "under $1" promotional areas. The promotional effect was very significant. During this period, the price of the same product on Temu was lower, so the sales volume was much higher than that on Amazon. However, some sellers pointed out that according to the rules of previous years, sales would also decline on the eve of the big promotions in previous years . This is because consumers would suppress their willingness to buy in the hope of buying the same product at a more favorable price on Prime Day. According to survey data, although the performance growth of many sellers in the first half of 2023 was lower than expected, more than 70% of sellers still hope to surge in sales and successfully achieve a big hit in the peak season in the second half of the year. Prime Day is the most anticipated promotion event during Amazon’s peak season in the second half of the year, and many sellers have high hopes for it. So, can Prime Day really help sellers with sluggish performance to revive their business? I am as excited as everyone else. Today is July 11th, which is also the first day of Amazon Prime Day officially opening on multiple sites. Below we will take you to understand the battle situation of sellers on major sites on the first day of the promotion. The first day of the promotion: Japan site was a small hit, while Europe site remained flat It is learned that according to Amazon’s previous official announcement, the time of Amazon Prime Day in 2023 is as shown in the figure: Among them, the most concerned by Amazon sellers are the Japanese, European and American sites, where Chinese sellers account for a relatively large proportion. As of 2 p.m., Prime Day had already started for several hours in European sites such as Germany and France, as well as Japanese sites. Many sellers posted their sales status, and some were happy while others were sad.
One seller said that they only received 5 orders at the same time in the past, but now they receive 10 orders, a 100% increase in order volume, but their profit margin is almost even. Another seller mentioned that his goal for this Member Day is to clear his inventory, but he has not yet achieved the order achievement. According to the survey, some Japanese sellers reported an increase in orders: "The Japanese station PD is OK, it doubled in half a day." "The Japanese site has seen a small boom, with orders in the morning twice as much as in a normal day. With the member discount, the price is the same as usual, which is great." “The price is lower than usual and the order volume is good.” However, European sellers do not seem to feel the arrival of Member Day yet: "Europe hasn't made any splashes yet, it's just mediocre." "It's almost 8 o'clock in Europe, why haven't you placed any orders yet?" "The order volume is flat, maybe it's because Europeans are still sleeping." According to feedback from Amazon sellers, the European site also saw only a slight improvement on last year's Member Day, and did not see the expected "explosive orders feast". The reason may be that high inflation and energy crisis have had the greatest impact on European consumers. However, as of 14:00 Beijing time, the European site has just been opened. Due to the time difference, European consumers are likely to still be "asleep", and subsequent sales are expected to grow. According to the latest CivicScience data, the number of participants in "Prime Day" in 2023 may increase significantly compared to last year. The number of Amazon Prime members planning to participate in Prime Day shopping this year has increased by 12% compared to 2022. Bank of America analysts also said that e-commerce giant Amazon is expected to sell $12 billion worth of goods during its Prime Day event this week, driven by discounts and improved logistics. With the opening of Amazon’s main site, the US Prime Day (15:00 Beijing time), the next few days will be the key time for explosive sales. In view of the fact that discounts have been stacked in previous years and resulted in “0 yuan purchases”, we would like to remind all sellers to check the PD discounts and coupons in the background in a timely manner to avoid further damage to the already tight profits. Finally, I wish all sellers on Member Day: your accounts are healthy and normal, shipments continue without interruption, and there are zero negative reviews!
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