Cancellation of orders, long holidays, factory closures! The Canton Fair has also been postponed. How can sellers survive?

Cancellation of orders, long holidays, factory closures! The Canton Fair has also been postponed. How can sellers survive?

2020 can be regarded as the worst year for the cross-border e-commerce industry.


Many foreign trade people did not lose their jobs due to the epidemic in China, but due to the epidemic in foreign countries.


An unprecedented wave of order cancellations is coming


The overseas epidemic suddenly got out of control, and the economy began to shut down instantly. The momentum of China's foreign trade enterprises, which had just recovered, was suppressed by the overseas epidemic. The first wave of foreign trade order cancellations has hit China!


The first to be affected is the domestic textile industry . Textile factories specializing in exports receive a large number of messages about overseas order cancellations every day.

 

Under the influence of the epidemic in Europe and the United States, not only the textile industry's exports have been hit, except for masks, protective clothing and other epidemic prevention materials, almost all industries have been greatly affected. A large number of foreign trade personnel are complaining that the order cancellations in Europe and the United States are the most and the most serious.

 

It is said that Futian Industrial, which is known as one of the world's largest circular knitted fabric manufacturers, had 4,500 tons of orders canceled in one day. A large shoe factory in Wenzhou stopped all of its more than a dozen production lines because its American customer closed its shop for a month, and now the factory is closed.


Many foreign trade factories stated that recently foreign trade orders from Europe, the United States and Southeast Asia have been constantly suspended, postponed or even cancelled, and some customers who have already placed orders have lost contact.


Many factories have long holidays, laid off employees, or closed down


Affected by this, many factories in Zhejiang, Fujian, Guangdong and other places had to suspend recruitment and cancel various benefits. Some even cut salaries, lay off employees, and give long holidays.

  

 

 

An employee of a foreign trade company in Dongguan said that all of its customers have stopped placing orders, and the company has requested to cancel or suspend the production of the original orders, which has resulted in the factory being unable to operate normally. In addition, the company has invested a lot of manpower, material and financial resources in active prevention and control for a long time, and the company's operations have encountered a major crisis. The company issued the following announcement to accept the resignation of all employees:

 

As the "order shortage" spread, many factories collapsed.


On March 18 , Panduit Toys, a large toy manufacturer with more than 1,200 employees, announced its closure due to the cancellation of orders from Europe and the United States.


On March 21 , Jiahe Electronics, a well-known Cosonic headphone manufacturer with 4,000 employees, announced that all workers would have their salaries cut or be cleared out of the factory due to the epidemic.

 

On March 21 , a large manufacturing company in Dongguan was forced to announce a three-month holiday because its largest customer, FOSSIL of the United States, canceled all orders, and its future was in jeopardy.


Even Foxconn , the "world's factory", has announced that it has stopped recruiting general workers in all its factories in mainland China (Langfang, Beijing, Tianjin, Taiyuan, Zhengzhou, Yantai, Qinhuangdao, etc.) .

 

In addition, Great Wall Development, Scandinavian Development, Qi Yue, Ensmer, BYD and others have also reduced or stopped employment.


Even these well-known companies can't bear it, let alone the small and medium-sized enterprises in the cross-border e-commerce industry.


Cross-border e-commerce layoffs have just begun


The epidemic has turned the world upside down, and we are witnessing history every day. The US stock market has been circuit-breakered 4 times, flights have been reduced by 90% , air freight prices have soared, and Amazon FBA in Europe and the United States has been shut down .   Most categories stopped receiving inventory before April 5 (some sellers even delayed it until April 21 ), and sales of many sellers plummeted by 60% , and it is still unknown when the epidemic abroad can be brought under control.


In such an environment, many bosses dare not persist, let alone expand investment, and they all want to reduce costs first, so many cross-border e-commerce companies have begun to lay off employees . I saw a cross-border practitioner recently saying that the operation team had a total of 10 people, and the company directly cut 7 people, leaving only 3 people in operation.

 

According to the operator, this round of layoffs is a direct persuasion to resign, and the company will not recruit anyone during this period. Those who stay must be able to do the work of several people.


Yesterday, a company issued an urgent notice stating that the company's Amazon department will be on holiday for at least 3 months. The content is as follows:

The bright spot is that the company encourages employees to find their own way out, which is equivalent to disbanding...


Have cross-border e-commerce companies started laying off employees? Regarding this question, many sellers in the forum said that they have already started.

 

For many cross-border e-commerce practitioners, the wave of unemployment may have just begun.


Where are cross-border sellers heading?


For those sellers who have lost their jobs , they will undoubtedly look for the next buyer as soon as possible , or wait for the opportunity to work on their own. I won’t say much about this, and let’s focus on the sellers who are still struggling.


In the current situation in Europe and the United States, sellers are most worried about what to do if Amazon announces a further delay in warehousing on April 5? What to do if logistics is suspended ? How can they survive? ...


The coping strategies are as follows:

1. Prepare stocks reasonably, don’t hold too much stock, and have cash in hand. Sellers can prepare a small amount of stock first, so that they have more cash flow, and then prepare stocks normally when FBA can receive them normally on April 5. If FBA delays receiving them, then they can consider sending them to a third-party overseas warehouse.


2. Learn from other platforms and don’t put all your eggs in one basket. In addition to Amazon, you can also learn from other platforms such as eBay, Wish, and Lazada, so as not to hang your eggs on one tree.


3. During the epidemic, calm down and practice your inner strength. Continue to optimize the listing pages, pictures, reviews, etc., which can be optimized. This is also a way to practice inner strength.


4. Adjust your mindset . Instead of getting panicked and anxious, it is better to make a good operation plan after the epidemic ends. Besides, if the sky falls, don’t be afraid, let the FBA people bear it first.


5. Observe category opportunities and select products. This is also the most important thing at present, after all, the epidemic will eventually pass. Seasonal products have basically begun to fade in March. Now everyone should be busy selecting products. For example, due to the impact of the epidemic, the sales of some categories will change. For example, outdoor, travel, and sportswear products are the most affected, but some categories may still grow, such as home furnishings, personal care, etc., and you can explore opportunities and make adjustments to welcome the first wave of the peak season in July.


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