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▶ Video account attention cross-border navigation It is learned that Amazon China recently announced that the sales of more than 500 brands on Prime Day increased by more than 100% year-on-year, and the sales volume reached nearly three times that of the 618 period. From July 12 to 13, more than 100,000 items were sold per minute worldwide, showing a new round of vitality in online consumption. However, in this year's high inflation environment, online sales have plummeted and hit new lows, and the fact that a large amount of inventory is piled up in warehouses is indeed true. In order to ease inventory pressure, cross-border sellers have also adopted a large price reduction and sale method on Prime Day to clear inventory. According to analytical data, compared with 2021, the price of products on Amazon's entire website fell by an average of 3% during Prime Day 2022. We also learned that since the beginning of this year, it is not only cross-border sellers whose performance has been affected by the market environment and large amounts of accumulated inventory. Due to the vicious cycle of product backlog, cross-border suppliers announced production suspension! It is learned that on July 18, a well-known cross-border supplier in Dongguan issued a notice of suspension of production and closure of business. The notice stated that since the outbreak of the epidemic, the company has been in arrears of payment from many cross-border e-commerce companies, and a large number of finished products have been piled up in warehouses, causing a vicious circle . Domestic and foreign orders are seriously disconnected and have fallen sharply. In addition, the production and operation have been losing money every year in recent years. The overall environment has caused a great impact on the company and the market is extremely severe. The company decided to officially suspend production and close down on July 18, 2022 . ▲ The picture comes from the seller communication group It is understood that the company is not the first cross-border factory to announce production suspension this year. It was also mentioned in a previous article that a factory in Dongguan that specializes in supplying cross-border merchants encountered serious operational difficulties due to a sharp drop in orders and obstruction of payment collection. As a result, it was forced to suspend work and production from June 27 . ▲ The picture comes from the seller communication group According to incomplete statistics, in April 2022, more than 1,000 factories in the cross-border e-commerce industry went bankrupt, and by May, nearly 300 factories had closed down. Looking at the main reasons for the suspension of production of these cross-border suppliers, they are all closely related to the current severe market environment and the decline in sales that has led to blocked capital chains. This year, against the backdrop of the global economy, factors such as soaring operating costs and sluggish consumer markets in Europe and the United States are impacting the cross-border market. According to survey data, more than 60% of sellers saw a decline in sales in the first half of the year, and only 17% of sellers saw an increase in sales. It can be seen that the decline in sales has become a pain point in the current cross-border market. With the market situation of declining sales, cross-border sellers are facing the dilemma of blocked cash flow turnover . Under the vicious cycle of blocked cash flow for cross-border sellers, it is difficult for suppliers to receive payments, and capital chain turnover is difficult, the contradiction between the two is clearly highlighted. In this regard, a seller recently said that affected by the news of the supplier's suspension of production, many cross-border suppliers have canceled or shortened the payment terms previously given to sellers, which will undoubtedly further increase the cash flow pressure of cross-border sellers. Suppliers shorten payment terms. How can sellers ensure sufficient cash flow? As we all know, cash flow is the lifeblood of every enterprise and the prerequisite for the normal production and operation activities of the enterprise. At the 2022 Berkshire shareholders meeting, Buffett also admitted: "Everything may change, but one thing will never change, that is, we will always hold a lot of cash in our hands!" In recent years, affected by factors such as rising shipping costs, declining overseas purchasing power, and intensified competition, the cross-border e-commerce market environment has become extremely severe, and the requirements for the capital chain of suppliers and sellers have gradually increased. If the news that cross-border suppliers have shortened their payment terms is true, the payments that could previously be settled annually or quarterly will suddenly become cash payments or even early settlements, which will undoubtedly further increase the cash flow pressure on cross-border sellers. For cross-border e-commerce sellers, ensuring healthy capital turnover is the top priority now and in the future. Recently, we learned that after the lifting of home restrictions due to the overseas epidemic, global shopping demand has recovered since June. Among them, overseas demand in industries such as beauty and personal care, outdoor and consumer electronics has increased significantly compared with May. In the second half of 2022, the cross-border e-commerce industry is expected to begin to gradually recover. As the old saying goes: Those who do not plan for the overall situation are not qualified to plan for a specific area; those who do not plan for eternity are not qualified to plan for the moment. Ensuring flexible capital turnover is the foundation for sellers to operate stably after the industry recovers and the key to achieving performance breakthroughs. As a partner of Amazon's seller loan program, Dowsure (hereinafter referred to as "Dowsure") has been committed to providing timely and sufficient financial support to cross-border sellers in rapidly expanding their business and overcoming cash flow difficulties. 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