The first half of 2021 was a year of "bloody storm" for the cross-border trading industry, and the industry structure was reshuffled. The control of the platform became tighter and tighter, and under the impact of the account blocking wave, both big sellers and small and medium-sized sellers were hard to escape.
Now is the time when the top sellers announce their half-year results. Following the big sellers such as Anker and Tongtuo, Xinghui Holdings also released its financial report recently. How has the performance of its subsidiary Zebao been after being caught up in the account blocking wave? Cross-border navigation Zebao's revenue in the first half of the year exceeded 1.9 billion, and its dependence on third-party platforms was too high#Amazon##Cross-border headlines#Cross-border e-commerce video account ▲ Video account attention: cross-border navigation Zebao's revenue in the first half of the year was 1.925 billion, and its net profit fell by more than 30 million
It is learned that yesterday, Zebao's parent company, Xinghui Co., Ltd., released its financial report for January-June 2021. The report showed that Zebao achieved operating income of 1.925 billion yuan in the first half of the year , a year-on-year increase of 8.4% .
During the reporting period: 1. Zebao Technology's online sales revenue was 1.756 billion yuan , of which 1.705 billion yuan came from sales on the Amazon platform , accounting for 97.13% , and the operating income from sales through its own website was 0.41 billion yuan . 2. The total number of registered users of the company’s own website is 645,069 , and the average consumption amount of historical orders is RMB 620.53 . 3. According to the financial report, Zebao's net profit in the first half of the year was nearly 115 million yuan , a decrease of approximately 30 million yuan compared with 148 million yuan in the same period last year . Among Zebao's main categories, small household appliances were the main source of income for Zebao in the first half of the year, with revenue of nearly 780 million yuan, of which online sales accounted for 44.30%. It is worth noting that its first-tier categories performed poorly in the first half of the year, among which Bluetooth audio products fell by 33.35% year-on-year and gross profit margin fell by 10.87%. Power products fell by 5.85% year-on-year and gross profit margin fell by 14.98%. In terms of offline sales business, Zebao's offline sales revenue in the first half of the year was 170 million yuan, an increase of 82.74% compared with the same period last year, achieving a significant increase. Zebao actively develops sales channels to reduce its reliance on Amazon
On June 16, some stores under ZEBO's three brands, RAVPower, Taotronics, and VAVA, were suspended from selling on the Amazon platform because some products gave away gift cards, which was suspected of violating Amazon platform rules. According to the announcement disclosed by ZEBO, the operating income of the affected stores accounted for about 31% of the company's operating income on Amazon.
In the first half of the year, Zebao achieved more than 97% of its revenue on the Amazon platform, and its online revenue was basically achieved through the Amazon channel. Therefore, this account blocking incident can be said to have dealt a considerable blow to its business operations, which can also be seen from the data of a 30 million drop in net profit disclosed in the financial report. In response to the account blocking incident, the financial report pointed out that Zebao’s reliance on third-party platforms was too high , and its daily operations were greatly affected by the platform’s operating rules. If the Amazon platform increases its service fee standards, it will directly have an adverse impact on the company’s profitability. In addition, starting from the first half of 2021, Amazon suspended the sales of a batch of products from Chinese sellers on the grounds that "sellers were suspected of violating Amazon platform operating rules." If Zebao's products involved cannot resume normal sales, it will have an adverse impact on its operations. To this end, ZEBO also stated that it will actively expand third-party sales platforms, official websites and offline channels outside of Amazon, increase sales share, and gradually reduce its dependence on the Amazon platform. Other third-party platforms that have achieved sales include Walmart, eBay, JD.com, Rakuten, and Shopify. Adhering to compliant operations, Lechuang bluntly stated that the account ban had no impact on the company
Since the account blocking wave began, many top sellers have been killed as a warning to others by Amazon, but some listed companies have stated that they have not been affected.
Recently, Lechuang Holdings said in an institutional survey that Amazon's store closure has no impact on the company. The company has always been operating in compliance with regulations. This matter is good for compliance operations and purifying the competitive environment. Only by being honest with consumers can we go further. It is learned that Lechuang achieved operating income of 1.397 billion yuan in the first half of the year, a year-on-year increase of 120.68%; and realized a net profit attributable to shareholders of the listed company of 84.0027 million yuan, a year-on-year increase of 23.25%. Among them, cross-border e-commerce sales revenue increased by 132.45% year-on-year, and independent station sales increased by 366.42% year-on-year. According to the first half financial report previously disclosed by Lechuang Holdings, its cross-border e-commerce business is developing step by step and is thriving. On the one hand, the company strictly abides by the compliance operation guidelines, and on the other hand, the company implements a diversified sales model covering multiple types and channels at home, abroad, online and offline, and continues to expand channels. It can also be seen that compliant operation + multi-channel operation has become the vane of the future development of cross-border e-commerce. Whether relying on a third-party platform or establishing an independent website for your own brand, a diversified development system is needed to last longer. What do you want to say about this? Feel free to leave a message in the comment area~
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