Today is November 6th, and the results of the US election have not yet come out after two days of waiting. As of 2 pm today, the number of votes in the US election is still the same as yesterday, with Biden temporarily leading Trump by 264 votes.

At this point, many people can't wait, but the election is still deadlocked. Even Trump can't sit still. His campaign team filed lawsuits in Pennsylvania, Michigan and Georgia, demanding the suspension of vote counting or a recount. But Michigan and Georgia have dismissed the lawsuits.

Against the backdrop of the ever-changing and suspenseful US election, foreign traders and sellers are also anxious along with the Chinese public. The election of the century seems to have set off a bloody storm in cross-border e-commerce, with orders halved, exchange rates falling, and riots frequent, making the already difficult situation of cross-border sellers even more difficult.

The US dollar exchange rate has been falling

As early as a few months ago, the US dollar exchange rate began to show a downward trend. Now the US dollar has fallen to 6.6 at one point. Sellers who cannot do without export settlement will be the first to be affected.

According to China News Service, the mid-point of the RMB exchange rate in the interbank foreign exchange market on November 6, 2020 was: 1 US dollar to 6.6290 RMB, a sharp increase of 605 basis points from the previous trading day, setting the highest level since July 11, 2018.

It is understood that as the uncertainty of the election results increased, the RMB exchange rate fluctuated sharply, showing a roller coaster trend.

On Wednesday, the yuan briefly plunged as much as 1.4% against the dollar when early vote counts showed U.S. President Donald Trump leading the race against former Vice President Joe Biden, with most polls leaning to the left of Biden's projections.

As the gap between the two candidates narrowed, the RMB's decline narrowed, and finally fell by only 0.3%, about 6.7 RMB per dollar. The onshore RMB, which is subject to stricter control, fell by more than 1% before stopping at a drop of 0.2%. According to relevant analysis, if Trump is re-elected, his trade policy may further suppress the RMB exchange rate.

As early as August and September, many sellers suffered a lot of losses due to the depreciation of the US dollar exchange rate. Some sellers lost hundreds of thousands of yuan when withdrawing cash and converting foreign exchange due to the depreciation of the exchange rate , which made many sellers complain, "Don't let the exchange rate fall any more, we don't have money to buy autumn johns."

Today, the US dollar exchange rate still has no upward trend. The election has directly exacerbated the instability of the exchange rate. At this time, if foreign traders and sellers withdraw cash and exchange currency, it means they will face a considerable loss.

Judging from the current situation, it is expected that the unstable state of the US dollar exchange rate will continue for some time. Therefore, cross-border sellers should make preparations early. They can avoid losses caused by foreign exchange settlement at this time by raising product prices, adjusting marketing strategies, etc.

Europe's epidemic situation is urgent, and the number of countries under lockdown is increasing

The US election is in full swing, and the epidemic prevention and control situation in Europe is not optimistic. According to data from Johns Hopkins University in the United States on Thursday (November 5), the number of confirmed cases of the new coronavirus worldwide has exceeded 48 million, and the death toll has exceeded 1.22 million.

In order to curb the outbreak, many European countries have introduced a series of restrictive measures against the new coronavirus. On Monday, 12 European countries announced the implementation of "lockdown": Germany, France, Ireland, Italy, Spain, Czech Republic, Belgium, Britain, Austria, Greece, Netherlands, Poland.

But this group is still expanding. At present, new countries have announced that they are entering a "lockdown" state, which has increased the tension of the epidemic.

Even though the situation is grim, in Europe, which advocates freedom, many people are still dissatisfied with the blockade policy. Terrorist attacks and street riots occur from time to time, making epidemic prevention and control even more difficult. In this case, the seller's order volume and logistics delivery will also be affected to a certain extent.

For cross-border sellers, the current international situation is very unfriendly. During this period, sellers' sales volume can be described as very bleak. Coupled with the impact of the US dollar exchange rate and the European blockade, life will be even more difficult.

In view of the above situation, the following suggestions are given to sellers:

1. Faced with the situation where the US dollar exchange rate continues to fall and exchange losses become higher, sellers can reduce losses by raising product prices (a small increase of 2%-8%), adjusting marketing methods (small profits but quick turnover) or waiting for the exchange rate to rebound.

2. Many European and American countries have implemented blockades, and the purchasing power of their people and logistics delivery will also be affected in the future. Sellers should adjust their stocking and delivery plans in time to ensure sufficient inventory before the peak season. In addition, sellers can also consider the hot-selling categories during the epidemic when selecting products.

Although the current situation is not satisfactory, there is a hidden turning point in the crisis, and sellers do not need to worry too much. The Black Friday online promotion festival is about to come. As long as sellers do well in the present, follow up and adjust their operating strategies in a timely manner, I believe that the number of orders will slowly recover.

The discussion about the US election has been very heated recently. As a cross-border seller, the most concerned thing is of course who will be the president and will be the most beneficial to cross-border e-commerce. Some sellers support Biden, and some sellers like Trump. So who do you think will be the president of the United States and will be the most beneficial to cross-border e-commerce? You are welcome to leave your opinions in the comment area~