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How to grasp business opportunities in Q4 peak season

Cross border e-commerce has only two seasons a year, the off season and the peak season. In September, the peak season also officially started. Important festivals came one after another, and sellers also welcomed the last wave of opportunities at the end of the year.


Strong consumption desire, the peak season in the second half of the year is still expected


In fact, sellers should not worry too much about this year's peak season. With the online consumption habits cultivated by the epidemic, people in various countries and regions around the world are increasingly accepting online shopping. At present, cross-border e-commerce is ushering in a new round of sales growth in the second half of the year.


According to market research data and the "2022 Holiday Preview" released by the technology company Numerator, 79% of American consumers will spend more than $100 in this holiday shopping season; 59% of consumers will spend more than $200; 12% of consumers will spend $150 to $200; 8% of consumers will spend $100 to $150; Only 12% of consumers plan to spend less than $50. On the whole, although the current inflation problem is still serious, Americans' willingness to consume is still high during the holiday shopping season.


Based on the experience of preparing for the peak season in previous years, the sales volume in the peak season in the second half of the year is bound to be much higher than that in the off season. Take 3C electronic products as an example. The data disclosed by Mercado Livre, a Latin American e-commerce company, shows that since November 2021, the sales of refrigerators have increased significantly, and the sales of the entire platform have increased by 6%. In addition, Chinese sellers on several cross-border e-commerce platforms, including Amazon, eBay and AliExpress, performed well during the Black Five. Among them, Amazon's sales increased by more than 50% year on year, hitting a record high; The sales of small business sellers on eBay increased by 7% compared with the previous week; For the first time, the number of rookies from the bill of lading exceeded the daily limit by 4 times, and the number of combined orders exceeded the daily limit by 6 times.

Preparation season! The secret that the seller must know

So for the second half of the year, how should sellers seize the golden opportunity to win a bumper harvest?


1For the strategy of selecting products, the first thing to bear the brunt is to exclude the commodities that are sensitive, dangerous or restricted on the platform, the threshold cannot be broken, and the profits are not up to the standard, and to select the single products that are highly profitable and just needed on holidays. Generally speaking, the gross profit margin of the product needs to reach more than 30% (excluding logistics, FBA, advertising and other expenses) to make money. For example, if the product cost is $100, our selling price should be above $142.86 (selling price=cost/(1-30%)). In terms of categories, it is recommended to choose categories related to holidays, such as Halloween in November, clothing, decorations, pumpkin carving clothing, fur boots and other products; Christmas in December is a Christmas tree, various decorations, stockings, gift boxes, etc.


2For marketing strategy, it is suggested that the seller should study and review the sales situation and sales records in recent years. For example, the seller can sort out the historical sales situation of all similar products on the platform, investigate the information related to competitive products, and make a sales (promotion) plan for each product in advance. Different from last year, due to inflation, 70% of holiday shoppers this year tend to choose more discounted goods. In terms of inventory safety, it is suggested that the seller should increase some quantity on the basis of the previous monthly sales to avoid the risk of stock out. At the same time, marketing and off-site promotion are also essential. It is suggested that sellers should put the products with the highest click rate in a prominent position 4-8 weeks before the Black Five Network to start attracting customers.


In addition, sellers cannot ignore the power of KOL and social media. Relevant data shows that many bloggers also help to increase the traffic in the store during the holidays; At the beginning of this year, the Influencer Marketing Factory's research on 350 American Generation Z and Millennials showed that 60% of Generation Z and Millennials chose to buy the product after seeing the content published by bloggers


3As for the logistics and transportation plan, due to the mismatch between online shopping demand and offline distribution system in some regions, and the impact of riots in American states, buyers may not receive goods as scheduled. It is suggested that the seller should choose an appropriate and reliable logistics service provider and adopt small batch and multiple logistics transportation to deal with the logistics problems.