Popular cross-border cities are gradually becoming quiet! Sellers say that the inland areas are really attractive?

A MZ123 learned that recently, many sellers have been discussing in forums about cities that are more suitable for cross-border e-commerce: In the past, provinces such as Guangdong and Shanxi were the main areas of domestic cross-border e-commerce, but now the situation seems to have begun to change. More and more sellers are withdrawing from these areas and moving to cities with relatively vacant industries and lower costs.

  ▲ The picture comes from Zhiwubuyan

In fact, the trend of cross-border e-commerce industry transfer has long been revealed, and has begun to accelerate with the overlap of various factors since this year.

Since the establishment of the cross-border e-commerce comprehensive pilot zone, Shenzhen has led the country in business volume for many years and has gathered the largest number of cross-border e-commerce market players in the country. The number of head enterprises and the level of customs clearance facilitation are both among the best in the country, attracting practitioners from all over the country to come and strive. It has produced industry super sellers such as the "Five Tigers of Bantian" and the "Four Young Masters of South China City".

But the good times are hard to maintain. Since Amazon's large-scale account ban in 2021, many sellers in Shenzhen have lost all their money overnight. After that, as price involution continued to hit profits, all cross-border sellers began to reduce their scale and save costs to save themselves. They laid off employees, changed to smaller office space , or directly fled Shenzhen and moved to inland cities with lower costs.

▲ The picture comes from Zhiwubuyan

Nowadays, " a small ship is easier to turn around" has become a consensus among many cross-border sellers. After experiencing the high expenses and fierce competition in Shenzhen, many sellers from the mainland choose to move their companies to their hometowns. Although their performance has declined, thanks to the lower labor costs and site fees, the final profit is even higher than when they were in Shenzhen.

In addition to the most well-known Shenzhen, another low-key region from the mainland also once set off a huge Amazon craze.

When it comes to Shanxi Province, many sellers hold a regional prejudice against it, believing that the province is a gathering place for malicious copycats, unscrupulous service providers and training institutions, which will only corrupt the industry's atmosphere.

This view is actually not correct. Shanxi Province has a cross-border e-commerce scale second only to Guangdong, and the number of sellers in Taiyuan and Luliang City ranks third and fourth in the country .

▲ The picture comes from the Internet

Shanxi was once a pioneer in the domestic FBM distribution model, and many Shanxi sellers have already made their first fortune on Amazon. Of course, in the early days when Amazon's copyright protection was not so strict, this method of playing could indeed create huge profits at low costs.

As Amazon has frequently taken action to combat copyright infringement in recent years, the risk of copycat sales and cross-selling has increased. The slightest mistake will result in product removal or even store closure. The entire cross-border e-commerce industry has been moving towards high-quality and branded products . This has caused the business methods of Shanxi sellers to gradually lose the market, and there has been less and less positive news about this province, which was the pioneer of e-commerce, since last year.

The old era has passed and a new era is about to come. Now more and more cities have seen the huge potential of the cross-border e-commerce industry and have followed suit by introducing various preferential policies and establishing cross-border e-commerce pilot zones.

In order to achieve more convenient cross-border e-commerce trade, the State Council of China has established a cross-border e-commerce comprehensive pilot zone (hereinafter referred to as the cross-border comprehensive pilot zone), adopting a specific management model and granting special policy preferences for cross-border e-commerce businesses in this area.

▲ The picture comes from the Internet

Hangzhou was the only city in the first batch of approved cross-border comprehensive pilot zones in 2015. However, as the first cross-border e-commerce comprehensive pilot zone, Hangzhou did not play the role of a leader. Instead, the familiar Shenzhen, as a city in the second batch of cross-border comprehensive pilot zones, came from behind and firmly sat in the top spot.

On January 22, 2022, the State Council agreed to establish the sixth batch of cross-border comprehensive pilot zones in 27 cities including Ordos City and Yangzhou City. So far, a total of 132 prefecture -level cities have established cross-border comprehensive pilot zones, which is close to half of the prefecture-level cities in the country , which shows how fast it is developing.

Not only that, starting from July 2021, China's Comprehensive Pilot Zone for Cross-border E-commerce will establish an assessment and exit mechanism for the comprehensive pilot zone , and organize and carry out the first assessment and evaluation of the comprehensive pilot zone to promote the survival of the fittest.

With this mechanism, the government can screen out cities with the greatest industry advantages for sellers, giving them more choices, rather than having to stay in cities with concentrated industries, facing fierce competition and leaving their hometowns.

In conclusion : For most small and medium-sized sellers, when their profits are continuously reduced or even incurring losses, if they want to sustain longer, they can only try their best to reduce costs and save expenses. This means that they must move out of more expensive office locations or lay off redundant employees. In this way, following the trend of the national cross-border e-commerce support policy, it may be a very good choice to take this opportunity to relocate the company to inland cities with lower operating costs.