In the past 40 years of reform and opening up, China has been at the worlds leading level in the fields of basic manufacturing, clothing and textile industry, small commodity accessories, etc. In 2020, due to the impact of the epidemic, both the traditional B2B mode and some online B2B mode have experienced a huge blow. Due to the home-based restrictions of epidemic prevention and control, European and American people are accustomed to traditional offline shopping gradually turning to online shopping, and online shopping has experienced an explosive growth during the epidemic period.
In China, online shopping has become a routine operation of our life. The growth of online shopping in recent ten years has also driven the development of express transportation industry. Since 13 years ago, Chinas express business has leapt to the first in the world. The leading express transportation industry provides high-quality service for the distribution management of online shopping.
The domestic e-commerce competition is fierce, and the number of e-commerce platforms such as Taobao and Jingdong is constantly saturated. The number of sellers has reached 30 million, and the profit margin has been continuously depressed. It is more difficult for new sellers to enter the market to gain profits. In the face of the increasing shopping demand in the European and American markets, it has become a new project for many e-commerce practitioners to sell Chinese high-quality and low-cost products abroad to meet the needs of overseas users.
Cross border e-commerce has always been valued by the government. Since 2017, support policies for cross-border e-commerce have been introduced in succession, from improving the efficiency of customs clearance, to implementing the tax-free policy without tickets, and constantly improving the support policies for new formats such as cross-border e-commerce.
At the second session of the National Peoples Congress in 2019, the leaders pointed out: the support policies for new formats such as cross-border e-commerce will be reformed and improved. We will promote the innovation and development of service trade, guide the transformation and upgrading of processing trade and transfer to the central and western regions, and give full play to the role of comprehensive bonded areas.
It is believed that with the improvement of relevant policies and regulations on cross-border e-commerce, Chinas cross-border e-commerce industry is expected to enter a period of rapid growth along the early development track of B2C e-commerce.
The choice of cross-border e-commerce platforms has many foreign e-commerce platforms, and the experience of overseas shopping platforms is also slightly different. But the platforms that cover the most countries and have the largest number of users should be Amazon, eBay and other platforms. After a period of development, these platforms have more perfect rules and better shopping experience, covering most countries and regions with strong consumption capacity. This is why smart win chooses Amazon as a starting point.
Platform operation mode
Amazon has two main operation modes: FBA and FBM. FBA operation mode: the seller delivers the goods to Amazon warehouse through international logistics, and foreign buyers buy the goods, and Amazon warehouse helps the seller deliver the goods to the buyer.
FBM operation mode: after the foreign buyer orders products on the platform, the seller starts to deliver the goods, and the goods are sent to the transit warehouse through logistics, and to the foreign buyers through international logistics.
Advantages and disadvantages of FBA
1. In the process of goods preparation to Amazon distribution warehouse in FBA operation mode, the logistics cost will be much lower than that of FBM operation mode because of the centralized transportation. The FBM operation mode generally charges international logistics fees by piece. The cost of each logistics distribution is related to the weight and size of the goods.
However, there is a fatal drawback in FBAs operation mode, which is the serious backlog of funds. Because the goods need to be sent to Amazon warehouse in advance, the seller has to prepare a large number of goods. If the market sales situation is not optimistic, a large number of goods can not be sold out, and the payment can not be collected in time, resulting in high risk. Therefore, under the FBA operation mode, there is no big difference between the traditional foreign trade and the FBA, but the sales products have changed from offline docking with middlemen to docking platforms. Because of the risk of capital backlog, a large number of domestic FBA sellers are in debt.
But FBM operation mode has less capital investment in the early stage, so the seller does not need to prepare a lot of goods. Relying on natural flow, there is no need to invest in product brushing and ranking. After the overseas users place an order, the seller will purchase and deliver the goods. Due to the small capital investment, the risk is relatively low. Moreover, the FBM operation mode can give full play to the advantages of domestic existing platforms and manufacturing industry, and the goods sold on 1688 and Taobao platforms can become the source of goods for cross-border e-commerce sellers.
Infringement is the second operational difficulty of Amazon. As the FBM model relies on the number of products to stack sales, infringement is a fatal defect, so we must strengthen the product audit on the shelves to prevent product infringement.
Amazon FBM smart win mode FBM and FBM are not on the opposite side, each has its own advantages and disadvantages. There is no one who is good or bad. We can combine the advantages and discard the disadvantages. Reduce the operation risk of cross-border e-commerce.
In FBM mode, there is no limit to the goods and quantity of shops. There are a lot of SKUs, and it is more likely to rely on natural flow. If FBM is stable in the case of orders, you can choose the goods with market demand from the list, and switch to FBA mode of operation. FBA stable single goods can be combined with the station advertising, to create a blockbuster! This is what we created: the smart win model.
Smart win mode gives full play to domestic high-quality and low-cost goods and developed logistics, and makes profits in overseas markets with as little platform operation cost as possible. Through the first mock exam, China will also accelerate the development of international logistics and expand the development of related industries and industries.
FBM operation mode often requires a large number of products and relies on natural flow to issue orders. Therefore, an excellent platform auxiliary management tool is particularly important. In the process of huge commodity quantity management, relying on manual operation not only has high error rate, but also greatly reduces efficiency, and also relies more on personnel quality requirements.
Smart win ERP takes FBM as the breakthrough point, aiming at the batch operation required by operating users, the batch management function is the entry point, adding service functions such as transit warehouse, centralizing the advantages of smart win user platform, obtaining relatively low price international logistics channels, and helping system users reduce the capital investment cost of delivery link. Through the advantages of system users, tens of millions of users are collected to make products on the shelves. In the system, users can share their own high-quality products to other users, help new sellers to quickly put products on the shelves in the early stage, and increase the probability of single order.
The software is deeply integrated with customer service system to provide overseas warehouse return service and solve the problems in each link of sales and after-sales. Smart win constantly summarizes the cross-border e-commerce operation experience of users in the system, outputs excellent operation mode to users, and helps new sellers and small sellers grow rapidly. The smart win mode is based on the achievements of nearly 40 years of reform and opening up. With the rapid development of logistics, transportation and e-commerce, we can create a development mode with Chinese characteristics under the FBM operation mode which is not favored by Amazon through the help of the system and the power of all users. Smart win mode can rely on Chinas logistics and transportation industry and developed e-commerce, and continuously replicate in different regions, so that cross-border e-commerce industry can take root in all parts of the motherland, promote local economic development, and realize the vision of increasing employees income. Source: editor in charge of mass news: Chen Tiqiang_ NB6485
The software is deeply integrated with customer service system to provide overseas warehouse return service and solve the problems in each link of sales and after-sales. Smart win constantly summarizes the cross-border e-commerce operation experience of users in the system, outputs excellent operation mode to users, and helps new sellers and small sellers grow rapidly.
The smart win mode is based on the achievements of nearly 40 years of reform and opening up. With the rapid development of logistics, transportation and e-commerce, we can create a development mode with Chinese characteristics under the FBM operation mode which is not favored by Amazon through the help of the system and the power of all users. Smart win mode can rely on Chinas logistics and transportation industry and developed e-commerce, and continuously replicate in different regions, so that cross-border e-commerce industry can take root in all parts of the motherland, promote local economic development, and realize the vision of increasing employees income.