Got bankrupt overnight? A Shenzhen cross-border company ran away due to unpaid rent, and the FBA fees of the European site increased again!

Got bankrupt overnight? A Shenzhen cross-border company ran away due to unpaid rent, and the FBA fees of the European site increased again!
Video account attention cross-border navigation


It is learned that the Japanese yen has depreciated significantly recently, and the exchange rate against the RMB has created history, falling below 0.05 for the first time. The latest data shows that the exchange rate of the Japanese yen against the RMB is 0.0499.
 
 
Some sellers said that assuming the average customer price of the product is 2,000 yen, the lowest exchange rate in 2021 was 110 yuan (exchange rate 0.0550) and the highest was 126.4 yuan (exchange rate 0.0632), but now it is only 99.2 yuan, with a minimum difference of 10.8. The higher the average customer price, the greater the profit difference in RMB.
 
It is foreseeable that the continued decline of the Japanese yen exchange rate will bring a considerable loss of profits to sellers on the Japanese and Asian sites. Before the exchange rate turmoil has subsided, the price increase turmoil has started again. After the US site, Amazon's European site also announced that it will increase FBA fees, and the price increase sickle has once again ruthlessly cut into the profits of cross-border sellers.
 
The FBA fees in Europe have also been increased, with a 4.3% surcharge!

Last week, Amazon US announced that starting from April 28, it will impose a 5% fuel and inflation surcharge on top of the FBA fees collected.
 
The announcement caused an uproar as soon as it was made. The FBA fees rose again after a lapse of three months, further compressing the sellers' profits, which were already being eroded by shipping costs, operating service fees and even price wars.
 
Now, sellers have not been able to expect a recovery in profits, but have been "welcomed" to follow suit in price adjustments on the European site.
 
Recently, many European sellers have received Amazon's price adjustment notice: from May 12, Amazon will charge a 4.3% fuel and inflation surcharge in five sites, including the UK, France, Germany, Italy and Spain. Taking the UK site as an example, this means that the average cost of each item will increase by 0.1 euros.
 
  The picture comes from the seller communication group

In response to this, many European sellers are also wailing:

"I thought there would be an increase, but I didn't expect the policy to be issued so soon."
"At least the exchange rate is stable when the US goes up, but Europe has dropped a few points and is crying."
"The exchange rate drop in Europe has already affected our profits. If prices continue to rise, it's GG."
"It's expected. Generally speaking, if the US site changes its policy, the European site will follow suit within two months. Moreover, this kind of policy that requires additional fees will definitely be launched as soon as possible."
 
At present, the situation of the Russia-Ukraine conflict is still volatile, and the sanctions of Western countries are also escalating. According to foreign media reports, Europe will announce a ban on Russian crude oil next week. Relevant departments predict that once the ban is implemented, the loss of crude oil and refined oil supply may exceed 4 million barrels per day. By then, Brent crude oil may soar 65% to $185 per barrel.
 
In addition, affected by the Russian-Ukrainian war, repeated epidemics, supply chain imbalances and other factors, the eurozone PPI soared 31.4% year-on-year. In February, the eurozone inflation rate continued to rise, hitting a record high for four consecutive months. Currently, the eurozone inflation rate has reached a record high of 7.5% and is still rising.
 
 
The further increase in global raw material prices, coupled with the increasingly severe inflation rates in Europe and the United States, have exacerbated the increase in Amazon's operating costs and put pressure on its revenue. In order to alleviate this trend, sellers can only (be) forced to bear the pain of increased costs.
 
Although Amazon says it has taken important steps to help sellers reduce costs by introducing fee reductions and promotions, for most sellers, these preferential policies are just a drop in the bucket to avoid a downward trend in profits.
 
It is extremely difficult to increase profits. The top sellers have to fight against the pain of cost increase, not to mention the small and medium-sized sellers. With the wind out, cross-border e-commerce now seems to have returned to the right track and is no longer an industry where you can make money everywhere. Under this situation, some people are still holding on, while others are quietly leaving.
 
Closed overnight? Shenzhen cross-border company was exposed to have defaulted on rent for 7 months!

A seller made such a joke: The small change between the beginning of 2021 and the beginning of 2022 is that people in the Longjiang Pork Trotter Restaurant at the entrance of the village no longer discuss Amazon, and the atmosphere group of the Starbucks in the shopping mall no longer discusses cross-border e-commerce.
 
From ten apartments in Shenzhen Bay to picking up bottles in Shenzhen Bay, from the dream of getting rich overnight to losing all the money and property overnight, such jokes seem to indirectly prove the cooling of the enthusiasm of cross-border e-commerce.
 
In an environment where revenue growth is slowing and profits are shrinking, more and more cross-border companies are focusing on building up their strength, while many start-ups that followed the trend when the market was booming have fallen silently.
 
According to reports, a Shenzhen cross-border operator found the company's door closed when he went to work on the weekend. He only learned from the notice posted on the door by the property management that the company had gone bankrupt and run away.
 
  The picture comes from the Internet

It is reported that the company has been in arrears of property fees and rent for as long as 7 months . The total rent and property fees owed have now reached more than 400,000 yuan . The property management has visited the company for negotiations many times but to no avail. Now the company's legal representative cannot be contacted, so it has decided to temporarily withhold the company's property.
 
It is learned that the company mainly conducts cross-border business on three platforms: Amazon, eBay and Wish. Recently, its Amazon products were sued by a US law firm for suspected infringement, which led to a break in the capital chain and made it unable to pay the rent.
 
On the one hand, profits are gradually declining, and on the other hand, platform regulatory policies are becoming increasingly tightened. Under the double pressure, the operations of many cross-border companies have been affected to varying degrees. Many big sellers have laid off employees and terminated their leases due to heavy losses. Previously, there was a report that a big seller in Shenzhen owed more than 30,000 yuan in funds and refused to repay them.
 
With the increasing operating costs and Amazon's precise attacks, cross-border sellers in 2022 seem to have entered a difficult mode. However, everything has its limits, and now that the traditional peak season is approaching, perhaps the successive big promotions will bring a turnaround for sellers.
 
What do you want to say about this? Feel free to leave a message in the comment area~


<<:  What information is needed to open a global store on Amazon?

>>:  Lone hero or speculator? Sideline anxiety besieges Amazon operations!

Recommend

Orders plummeted, and another new Amazon rule came into effect!

In a flash, the first quarter of 2024 has come to ...

What is EasyYa? EasyYa Review

EasyYa is a service platform under EasyNet Innovat...

Amazon scans accounts again! Sellers: Three warnings may result in store closure

From April 3rd to April 4th, many Amazon sellers f...

What is MavSocial? MavSocial Review

MavSocial allows you to monitor all your social me...

What is SEOChat? SEOChat Review

SEO Chat Keyword Suggest Tool is developed from SE...

Target launches early Black Friday promotion to get ahead of the holiday season

It is learned that on October 30, according to for...

Six black technologies to increase the clicks on your Facebook post links

Facebook is one of the main marketing platforms fo...

What is PromoRepublic? PromoRepublic Review

PromoRepublic is a small business social media ser...

What is the Amazon Tax Collection? Amazon Tax Collection Review

On April 11, 2019, a large number of sellers recei...

What is Myipp? Myipp Review

Myipp is a professional product selection tool for...