Cross-border Sellers See 'trade War Between China And The U.S.'

- Jun 10, 2019-

   The escalating trade war between China and the United States covers a wider range of products, including some of the conventional categories that exporters of e-commerce have dabbles in.Compared with general trade, the trade war between China and the United States has limited impact on e-commerce exporters, but we cannot rule out the possibility that the trade war will "hurt the fish in the water", according to industry insiders.

    Platform sellers talk about china-us trade war: the year-end peak season may be affected, stock volume significantly reduced

    The trade war may have the most direct impact on e-commerce exporters, who do not want their goods to be subject to higher taxes by either side.

"Since the start of the trade war between China and the United States, the most obvious feeling is that there has been some decline in online orders in the United States, which will have an impact on the preparation for the year-end season, for example, to reduce the amount of stock in order to reduce the risk," Wish seller zhong guisen told Hugo.In the current trade situation, the most important thing for e-commerce sellers to do is to control store risks."

    He also mentioned that in the future, exporters may also face rising prices of raw materials and higher costs, which will eventually be passed on to consumers, reducing their desire to buy some goods and inevitably affecting the number of transactions.At present, most American consumers use high-quality and cheap Chinese goods. If the trade war between China and the United States goes head-to-head, it will increase the consumption cost of consumers, and the sales performance of export e-commerce sellers will not be optimistic.

    Fannie, the amazon seller, also feels it."Trade war began, the more obvious changes is to export electricity sellers costs have gone up, after all, on the basis of the original cost, extra taxes, which requires the sellers want to keep advantage in competition, you need to do cost control as far as possible, avoid the vulgar management, through the external pressure, the operation to upgrade to the refinement operation."He said that cross-border e-commerce exports have always been dominated by low-end products, with serious homogenization and lack of corresponding core competitive advantages and irreplaceable advantages, and often rely on price to win. Now, once the exchange rate, tariffs and international trade environment changes, it is inevitable that sellers will encounter difficulties.

    Cosmetics brand Focallure seller fang xing says it accounts for less than 10% of its U.S. business, so it isn't too concerned about the tax impact."Because our products may be high premium, now is, after all, as part of the cosmetics products, prices rise and fall with the level of sales of high and low not necessarily linked, and the rise in tariffs, we need to do is to improve the sale price, in general, the platform sellers have little effect, but for the local consumers, maybe they want to pay a higher cost."

"In the current trading environment, it may have a greater impact on e-commerce sellers who sell goods for export," said zhang jiong, an analyst with guangdong cross-border e-commerce association.The lower the customer unit price is, the more it tends to be the distribution mode, and the tax rate will rise. Under the environment of compliance supervision, the distribution mode will become more and more challenging. At present, the increase of customer unit price is likely to become the new trend of cross-border e-commerce in the future.

    Us-china trade war will enable export e-commerce companies to train "three superpowers"

Since last year's trade war between the United States and China, the export e-commerce companies are always nervous about this, but according to many sellers, in this "battle", China is bound to win, and will take the challenge to adjust itself quickly to become stronger.As a result of trump's pressure, the trade war between China and the United States has become prolonged. China will gain three superpowers due to this extreme pressure:

First, super domestic demand expansion

   China has more than 1.3 billion people, 900 million labor resources, 170 million people with higher education or professional skills, and more than 100 million market players.China's economy is a huge market, strategic depth and sustained domestic demand that no other country can match.

These data also show that the Chinese market has unlimited development potential and talent to support technological innovation, and more and more enterprises will further develop China's domestic market."Under the current severe sino-us trade situation, it will bring great changes to the Chinese market to encourage more export enterprises to turn to domestic market and actively respond to the Chinese tide.""Said quan liubin, business manager of liuzhou liangshan import and export trade co., LTD.

Second, actively enhance innovation ability

    In zhong's opinion, under the current pressure from the United States, more and more export-oriented e-commerce enterprises will be forced to stimulate their innovation consciousness, and will burst into great energy to meet the current challenges."Once sellers create irreplaceable products with unique market competitiveness, no matter how the tariff policy is adjusted, the target market and core consumer groups of export e-commerce sellers will be relatively stable, so that they can stand firm in the changing trade situation."

Iii. Compliance sellers are the main force

     For small and medium-sized sellers exporting to the United States and even other countries, the operation methods are becoming more flexible and diversified, including declaration, tax rate, trademark registration and intellectual property rights," said zhang.As a result of the trade war between China and the United States, more and more sellers are paying more attention to compliance operations, such as optimizing procurement channels, seeking cooperation with regular manufacturers, focusing on brand building, and increasing efforts in product research and development, so as to increase the unit price of goods and survive in the market."

   In addition, in terms of logistics, he suggested that sellers should try their best to save logistics costs and increase commodity profits.In the following e-commerce operation, we can pay attention to the following points:

1. It is necessary to distinguish the list of additional levies clearly, even if the seller's goods are not within the scope of additional levies;

2. Keep an eye on the information and changes of us customs clearance and declaration;

3. According to the declaration of multiple skus, be good at communicating with the customs partner actively to get more information. If the declaration is still made in the United States in the previous mode, the seller should remember not to rush to ship in bulk, and take action after finding out the relevant information;

4, seek strength of service providers to cooperate with it, especially high credibility of service providers is crucial.