Unconsciously, the arrival of 2023 has entered the final countdown stage. Looking back at the cross-border goals set at the beginning of the year, some have successfully completed them while others have failed to achieve them. Now is the critical juncture of the transition from the old to the new. However, due to the raging epidemic and the market environment, the road for cross-border merchants to bid farewell to the old and usher in the new is not very peaceful.
Unemployment crisis at the end of the year? A large number of cross-border people are unable to find jobs Since 2022, on the one hand, the regulatory measures of third-party platforms such as Amazon have continued to escalate, and a wave of price increases in costs such as advertising fees and FBA fees have come one after another; on the other hand, the European and American consumer markets have cooled down due to the turbulent global economic environment, supply chain crisis, and intensified inflation.
Under this internal and external dilemma, more and more cross-border companies are rushing to lay off employees, reduce recruitment, and shrink business expansion plans. Difficulties in finding jobs and getting salary increases have become a major pain point for cross-border practitioners.
Survey data shows that as of November, nearly 60% of cross-border companies have laid off employees, and nearly 30% of them have carried out large-scale layoffs.
Now that the Spring Festival holiday is approaching, many cross-border people are helplessly unemployed and face a job-hunting crisis.
One seller said that after months of difficult operation, the company finally reached the point of bankruptcy. Although he paid one and a half months of severance pay, the timing was quite awkward and he didn't know what to do for a while.
Another seller who was looking for a job because his department was disbanded was facing the same dilemma: "Is the job market more difficult in December? Before, I would get 99+ messages when I opened my boss account, but now I only get 10 to 20 messages a day. Many companies only post positions, especially positions with weekends off. Even if I send a message, it will be read but not replied. I feel that the salary level has dropped again. My last job was 11K, and it is almost a luxury to expect a raise this time."
Many sellers feel the same pain:
"I'm in Taiyuan, with a monthly salary of 3,000 yuan. It's the same no matter which job I go from. From one job to another, the bosses all know each other." "The current state of the industry does not lack operations, and there are only a few companies that can make new products and make money. The previous one was 12k, and now it's 8.5k and still surviving." "I'm looking too. It's really difficult at this juncture. Sheep, those who don't do well this year will probably be laid off." "I live in Shenzhen. My last company had a base salary of 10K. I worked there for a year and resigned at the end of October this year. I started looking for a new job in December. I have interviewed 7 companies one after another. It is difficult to get 9K, let alone 10K. So far, I have received an offer of 8.5K per week to take over the clearance products of the resigned employees."
At this stage, the year-end is approaching, and the epidemic situation is severe. Most cross-border companies have not seen any personnel changes, and recruitment plans have basically stagnated. Therefore, the job market is quite "chilled."
However, at the same time, the market performance of the entire industry in 2022 was not very prosperous, and the overall profit dropped significantly compared with the same period last year. Under this circumstance, large-scale layoffs occurred repeatedly in the top sellers, and small and medium-sized companies also shrunk in size. Therefore, the cross-border recruitment market showed a trend of supply exceeding demand. Not only the job search threshold is getting higher and higher, but the salary and benefits have also dropped significantly. Market trend forecast for 2023, where should cross-border sellers go? In the turbulent year of 2022, what kind of answer did Amazon China sellers give?
According to official data disclosed by Amazon, Chinese sellers have sold billions of goods to global consumers through Amazon's 18 overseas markets this year. The number of Chinese sellers using FBA services has increased by more than 20% year-on-year, and their sales revenue has achieved double-digit growth. The number of Chinese brand sellers on Amazon has surged nearly three times in the past three years, with sales achieving double-digit growth in 2022. In addition, Chinese sellers are showing a trend of diversification in terms of product categories and technological innovation, as well as brand and business types.
It can be seen that Amazon is still the preferred channel for Chinese sellers to go global. However, at the same time, emerging market trends and the rapid development of blue oceans such as Latin America, Southeast Asia, and Africa, as well as the strong rise of independent websites and social e-commerce, have provided sellers with more opportunities to go global.
Now that 2022 is coming to an end, what will 2023 be like for cross-border merchants? Sellers have different opinions on this. Combining the views of all parties, there are mainly the following trend forecasts.
1. The demand side situation remains severe
The global macroeconomic recession has led to a continued slump in domestic and foreign consumption, and the sluggish demand side will not be reversed in the short term. After experiencing an explosive growth dividend period boosted by the epidemic, the frenetic market demand for cross-border e-commerce has gradually returned to rationality, and the market performance of this year's peak season promotion has obviously cooled down and may continue into next year.
2. Competition intensifies, supply chain becomes the key to success
After two years of crazy growth from 2020 to 2021, competition in the Amazon market has become increasingly fierce, and the phenomenon of low-price involution has also intensified. Under this circumstance, relying on a stable supply chain foundation to deepen brand power has gradually become a major winning point.
3. The market welcomes new points, intensifying the reshuffle
The emergence of independent sites such as Pinduoduo Temu, TikTok shop, and SHEIN has continuously stirred up the overseas e-commerce market, and has also tapped into more room for imagination, which may bring new growth points for those going overseas.
Some sellers admitted that in the face of the current market situation, cross-border practitioners are tested on their comprehensive personal abilities, market judgment and acumen. Therefore, in 2023, it is more important to cultivate their own internal strength and tap the potential of the market.
Although the arrival of winter means spring is not far away, it is still unknown whether spring will come next year or the year after.
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