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In recent days, the hottest topic in the cross-border circle is the power restriction order being implemented in many provinces. The policy covers a wide range of areas and affects a large number of people, which has attracted the attention of many parties, and cross-border sellers are no exception. The power cuts have caused a series of chain reactions. For Amazon sellers, the biggest concern is product prices. We have learned that recently, Amazon sellers have collectively been thinking about whether to raise prices or not . With the strictest power restriction order in front and the soaring advertising fees in the back, seeing that costs in all aspects are increasing and profits are being squeezed step by step, should they sit and wait for death or raise prices in response? Under the power restriction order, sellers are calling for price increases As power-rationing policies are implemented in many places, calls for raising product prices are heard in the industry. "My fellow colleagues, please stop fighting. There is no profit left. Let's all raise prices together." ▲ The picture comes from the seller communication group A power-rationing order in the fall of 2021 has made many sellers uneasy. Can power outages really change the current situation of prevalent involution among domestic sellers? Some sellers said that the United States is experiencing inflation, but Amazon’s prices are still so low. Domestic energy and production are restricted, and export freight is extremely high. Therefore, should sellers raise their prices across the board? ▲ The picture comes from Zhiwubuyan In this regard, some sellers expressed strong agreement and said that they have begun to raise product prices; but some sellers disagreed, believing that the root of the problem lies in the fact that there are too many sellers and that raising prices will not help. It has been observed that there are widespread calls in the industry for collective price increases, and some sellers have even sent emails to their peers to persuade them to raise prices together. Some sellers said that the current price of offline goods in the United States has increased significantly, and Amazon has become a beneficiary. A large number of buyers will increase the proportion of online shopping, but Chinese sellers have not obtained higher profits. They also summarized some reasons why sellers do not raise prices: ▲ The picture comes from Zhiwubuyan 1. Amazon’s sales algorithm has locked the hearts of Chinese sellers. Sellers are afraid that the weight of products will drop due to price increases, and data will deteriorate, leading to a decline in sales, so they dare not raise prices easily.
2. Amazon’s large-scale investment promotion has caused Chinese sellers to fall into internal competition and face fierce competition.
3. Due to inventory problems, sellers of certain categories need to clear out inventory at low prices and recover funds in large quantities.
4. The malicious competition business practices of some domestic sellers.
Although most sellers agree to raise prices to cope with rising costs, some sellers also joked that most of the inner circle brothers think like this: What does your power restriction have to do with me, Wu Sangui? I will be the king if I can outlast you. ▲ The picture comes from Zhiwubuyan There are even sellers who posted messages secretly mocking some of their peers, saying that under the power restriction policy, not only did they not raise prices, but they offered big discounts instead. Combined with the large discounts, this can be called a "successful gift" in the cross-border circle. The power restriction order not only caused sellers to discuss price issues, but also, as some factories and enterprises stopped working and reduced production, another group in the cross-border circle began to get restless: freight forwarders. Is the sharp drop in the price of Meisen related to scalpers? Since the beginning of this year, freight costs have skyrocketed, and the out-of-control freight market has doubled the logistics pressure on sellers. However, recently, this situation has finally turned around, and the high freight rates have begun to plummet. Cross-border navigation , three days fell below the three-month increase, and shipping costs fell across the board! #Amazon#Cross-border e-commerce##Cross-border headlines video account ▲ Video account focuses on cross-border navigation Recently, the implementation of the most stringent power restriction order has caused many factories to tighten their production capacity, and the most direct manifestation of this impact is that major shipping companies have successively lowered freight rates. We learned that many sellers said that Matsun's freight rates have dropped drastically, from nearly 30 yuan/KG to less than 20 yuan/KG. In East China, the rate has dropped to 16.5 yuan/KG, and the lowest bid is even as low as 10 yuan/KG. ▲ The picture comes from the seller communication group Industry insiders revealed that freight rates from Ningbo Port and Shanghai Port to the west coast of the United States plummeted, losing three months' gains in three days. In response to this, some sellers cried and said that the goods were shipped too early; some sellers lamented that the shipping costs had finally been reduced, which was not easy. "Last week, the space for this week's booking was over 30,000 yuan, but this week's booking is only a little over 20,000 yuan." ▲ The picture comes from the seller communication group "It was ridiculously expensive last week, but it dropped by half this week." "The domestic power supply and production restrictions will lead to price cuts if there is no supply." ▲ The picture comes from the seller communication group Why did the price of Matson Ocean Shipping plummet at this time? A seller revealed that this was closely related to the previous speculation by scalpers. A seller said: The company got a regular ship price of 41,000 US dollars for a Mason container last week, and the price this week is about 16,000-18,000 US dollars. How did the huge bubble between 16,000 and 41,000 come about? It can be said that it was hyped up by scalpers! It is learned that, on the one hand, under the power restriction policy, many factories stopped production and reduced production, and the demand for shipments dropped sharply, resulting in a downward trend in sea freight rates; on the other hand, there is scalper speculation in the cross-border logistics circle, and some bad freight forwarders have raised freight rates, resulting in high freight rates. Although the significant reduction in freight rates is a good opportunity for sellers to restock, they still need to consider the congestion at major ports and make good shipping plans.
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