A big gift appeared after the US dollar exchange rate plummeted? The logistics difficulties of cross-border sellers may be alleviated!

We finally survived 2020 and entered the new year of 2021. However, this beginning of the year does not seem to be so friendly to cross-border sellers.

I was shocked when I saw it! The US dollar exchange rate plummeted and fell below 6.45. This was a big shock to sellers who were unable to exchange currency in 2020.

The RMB exchange rate against the US dollar has entered the 6.4 era

Affected by the epidemic and the US election, the US dollar exchange rate has been declining since last year. Now, the RMB exchange rate against the US dollar has entered the 6.4 era.

The RMB exchange rate continues to appreciate, while the US dollar exchange rate continues to fall. Economists predict that the US dollar may depreciate significantly before the end of 2021. The American people are facing a deficit crisis, and the US economy may fall into a secondary crisis. In short, the continued decline of the US dollar exchange rate is inevitable.

Seeing the sharp drop in the US dollar exchange rate, some netizens said: "I haven't seen the US dollar exchange rate for a long time and I was shocked. How could it fall so much? It's really gratifying!"

▲ Picture screenshot from Weibo

Some are happy while others are sad. The appreciation of the RMB is good for imports, but for cross-border sellers, it is really hard to complain. One seller said: The profit from orders may not be able to catch up with the loss from currency exchange in the future.

▲ Picture screenshot from Weibo

In this regard, some economists said : The RMB exchange rate against the US dollar will fluctuate between 6.4 and 6.6 in the near future . This small increase in value is still acceptable to the export industry and manufacturing industry. But is this really the case?

The exchange rate falls, bringing joy and sorrow

Faced with the situation that the RMB exchange rate against the US dollar has entered the 6.4 era, I wonder what cross-border sellers think about this?

Seller A remained calm and collected: “It has already been configured according to 6.2.”

Seller B, who was about to cry but had no tears, said: "Not good, a lot of money is missing."

Optimistic seller C: "It has always been priced at 6.2."

▲ The picture comes from Weibo

Some sellers on other sites also complained: "Once the UK VAT is deducted, the exchange rate of the pound is the same as the exchange rate of the US dollar."

Of course, there are also sellers who are waiting and watching, saying that they mainly deal in Europe, which is good for Europe and they are not affected.

▲ The picture comes from Weibo

The falling US dollar exchange rate has caused great pain to sellers. However, it is not only the sellers who are affected, but also the factories.

As we all know, the epidemic has prompted the rapid development of cross-border e-commerce, and many industries have seen a surge in orders, especially China's small household appliance market, which has been improving all the way.

However, faced with the plummeting US dollar exchange rate and rising raw material prices, the home appliance industry seems to be in an awkward position. Although there is no worry about orders, the profits are not that considerable.

▲ The picture comes from Weibo

Affected by the epidemic, US consumer demand continues to rise. However, most sellers do not want to exchange the US dollar when the exchange rate is so low, but the goods that have been shipped are limited by the speed of freight, and the freight is also high, making it difficult to turn over funds, and sellers are also in an awkward situation.

But recently, a series of notifications and measures from Amazon may further ease the logistics difficulties of sellers.

Sellers' logistics difficulties may be alleviated

According to feedback from sellers in the seller communication group, they received a friendly notice from Amazon yesterday. The notice stated that Amazon will temporarily relax the delivery speed requirements for SFP members in consideration of the impact of the COVID-19 pandemic on the logistics industry. In other words, Amazon will allow SFP members to deliver goods to some customers one to two days later.

In general, Amazon has relaxed its delivery speed requirements for third-party fulfillment sellers due to the epidemic.

It is also worth mentioning that Amazon announced on January 5 that it would purchase 11 aircraft from Delta Air Lines and Canada's WestJet Airlines, hoping to speed up delivery by expanding its cargo fleet.

▲ The picture comes from the Internet

Amazon's move shows that in the next few years, Amazon's freight capacity will be greatly improved , which also means that the logistics problems that sellers are worried about will be solved. If the logistics problems are alleviated, it means that the funds that sellers are tight on due to exchange rate issues will also be relaxed.

Although the beginning of 2021 does not seem to be as smooth as expected, think about it, we have survived such a magical 2020, how difficult will 2021 be? So sellers should not worry too much about this, but relax and deal with it calmly.

I wonder if you, the cross-border sellers, have been affected by the decline in the US dollar exchange rate? Is the current exchange rate within your tolerance range? Welcome to leave a message in the comment area~