Biden forced the purchase of American goods, and a large number of sellers' orders plummeted...

Biden forced the purchase of American goods, and a large number of sellers' orders plummeted...

Biden just said last week that he would impose taxes on Amazon sellers, and now he is forcing them to buy American products.


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Biden signs "Buy American" executive order


According to foreign media reports, US President Joe Biden signed a "Buy American" executive order last week to urge federal agencies to increase purchases of American products and services to fulfill his campaign promises.


The executive order includes tightening government procurement rules to make it harder for federal agencies to buy imported products, revising the definition of "Made in the USA" products and increasing requirements for local content in products .


Biden tweeted that " if you spend American taxpayers' money, you should buy goods made in the United States ." He wrote in the tweet:

It's simple: When we spend taxpayer dollars, we should use them to buy goods made in the United States and support domestic jobs. My 'Buy American' Executive Order is designed to do just that." The tweet was accompanied by a picture that read "Taxpayer dollars should support American jobs."


 


The "Buy American" executive order was proposed by Biden during his campaign. It mainly targets U.S. government procurement and aims to plug policy loopholes in purchasing foreign products by increasing demand for domestic products.


According to reports, Biden will require the U.S. federal government to purchase U.S. goods and services with a budget of $400 billion over four years, and invest $300 billion in important U.S. technological research and development.


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What impact does this have on sellers?


This new policy has made many countries, including Canada and Japan, more vigilant, fearing that the United States will exclude foreign companies from the huge U.S. government procurement market in order to support American companies.


When it comes to trade policy toward China, Biden, like the Trump administration, regards China as its number one competitor .


According to data released by the General Administration of Customs of China, China's total exports to the United States in 2020 reached 3.1 trillion yuan , an increase of 7.9% compared with 2019. As a result, the United States became the country with the largest total exports to China in 2020 .


It is understood that during the epidemic, American consumers' demand for electronic products such as smart watches and computers, as well as medical and household products has increased significantly. This means that it must rely heavily on Chinese goods, so some experts believe that this policy will not harm China's exports to the United States.


However, some experts warned:

Some Chinese industries could be affected, especially those where they have established a strong foundation in the United States. For example, orders for agriculture and electronics from American buyers will decrease.
Therefore, these two types of sellers should pay attention, but the good news is that Biden’s “Buy American” executive order targets U.S. government purchases and does not restrict Americans from buying, so there is no need to worry too much.
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In January, the number of sellers' orders dropped sharply


When talking about the number of orders at the beginning of 2021, many sellers directly said that it was "too bad to watch".


One seller said: "Recently, I feel that the traffic on the US site is very low, and the number of orders is much less than in December."


Another seller said: "The number of orders in recent days has not exceeded 10. The worst day was only 3 orders. I am afraid I will starve to death if this continues..."

In addition, many sellers in the seller group can also complain about the recent poor order volume:

Seller A: Order volume has continued to decline since Black Friday. Is there really no future for doing business on Amazon?

Seller B: The order volume has been average recently. I don't dream of getting a big order. I'd be lucky if I could get any order.

Seller C: I watched my colleagues who sold products on other platforms seeing huge orders, but my orders on Amazon didn’t see any improvement at all. I’m almost becoming autistic.


According to feedback from sellers, the number of orders generally declined in January 2021. On the one hand, this was because the peak season had just passed, and on the other hand, Biden’s money had not yet been distributed, and Americans were a bit short of money.


What’s even worse than having no orders is that many sellers are frustrated by returns.


The return rate for each item is 20%, so all my work this year has been in vain.

The return rate for women's clothing in my store starts at 15%.

Electronic products are generally around 8%

The return rate for swimsuits is as high as 30%.

There are also assembled outdoor products sold in the seller's store, which have been selling well. However, the seller lost more than 30,000 yuan due to returns , and the return rate was much higher than in previous quarters.


I thought 2020 was difficult enough, but I didn’t expect the start of 2021 to be a bit bumpy. I hope things will get better when the peak season comes.


(Source: Seller Growth Academy)


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