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Today is Children's Day, but for the expired children - cross-border sellers, this is just an ordinary Tuesday with no sales and no surprises. Cross-border sellers have been facing multiple setbacks in recent days. On the one hand, the limited storage capacity has led to low sales, and on the other hand, the prevalence of price wars among peers has led to loss of profits. To make matters worse, the US dollar exchange rate has also been falling in recent days, and the sellers' mood has also fallen. The US dollar exchange rate returns to the 6.3 era As of June 1, the USD/RMB exchange rate was 6.37. After falling for several consecutive days, the USD/RMB exchange rate returned to the 6.3 era. It is reported that the onshore RMB/USD exchange rate has hit a three-year high.
At a time when profits are declining, exchange rates have always been a topic of great concern to cross-border sellers. In recent days, many sellers have been watching the rise and fall of the US dollar exchange rate, hoping to settle foreign exchange and withdraw cash when the US dollar exchange rate rises. However, what the sellers did not expect was that the consequence of waiting and watching was the repeated decline in the exchange rate. Based on the exchange rate at that time, for sellers with larger cash flows, every withdrawal would result in considerable losses. ▲ The picture comes from the seller communication group
This change has left sellers facing the age-old dilemma of whether to raise prices or not. Some sellers said that they have already started to raise prices, and everyone should be prepared for the risk of continued depreciation of the US dollar. However, some sellers are still waiting and seeing, believing that the purchasing power of the United States has declined, and if prices are raised at this time, the number of orders will drop a lot. ▲ The picture comes from the seller communication group Even stimulated by the continuous decline in the US dollar exchange rate, many sellers have the idea of changing careers and joked about what career they would pursue if they did not work for Amazon. ▲ The picture comes from the seller communication group On the one hand, the US dollar exchange rate has been falling, and on the other hand, sales before the peak season are unsatisfactory. In addition, price wars among peers are prevalent and industry chaos is frequent, which has put many sellers in dire straits. Cross-border sellers are facing an increasingly bitter daily life. Recently, news came out about a $6 trillion stimulus plan from the United States. Is this plan a blessing or poison for sellers? US inflation intensifies, $6 trillion stimulus package announced After the outbreak of the epidemic, in order to stimulate the U.S. economy and increase residents' consumption levels, the U.S. government has repeatedly issued subsidies and issued U.S. dollars on a large scale in an attempt to improve the adverse situation caused by the epidemic. And recently there was new news that Biden announced another large-scale fiscal budget plan. It is learned that US President Biden submitted a 6 trillion budget bill for fiscal year 2022 to Congress on Friday, which will bring US federal sustained spending to the highest level since World War II, and may cause the annual deficit to exceed 1.3 trillion yuan in the next 10 years. Since March last year, the United States has introduced economic stimulus measures totaling more than $5 trillion. The previous several cash distribution plans have indeed given consumers a lot of shopping confidence and allowed cross-border sellers to experience the joy of explosive orders. But cash distribution cannot solve all problems. Under the pressure of the epidemic, the US "double deficit" crisis has become more and more prominent. According to the U.S. Department of Commerce, the consumer price index (CPI) has risen by more than 4.2% since entering April, far higher than the expected 3.1%, indicating that the entire U.S. market is in a state of severe inflation. The emergence of inflation is also closely related to the U.S. government's crazy money printing. Relevant people analyzed that the US inflation index in April has reached the highest level since the 2008 financial crisis, which will make the US dollar increasingly worthless. Cross-border sellers are also well aware of this. With exchange rates falling again and again, inflation intensifying, and prices rising, it becomes increasingly difficult for sellers to conduct promotions and sales.
▲ The picture comes from the seller communication group I wonder what methods sellers can use to reduce the loss of profits and solve the current puzzle? Welcome to discuss in the comment area~
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