The cold snap hitting cross-border e-commerce arrived earlier and more fiercely than anticipated. What should have been a year-end sales sprint has become a survival test for many sellers.
The "Early Holiday" Trend: Perk or Desperation?
What's being called "early holiday leave" might better be described as disguised layoffs. The cross-border e-commerce sector underwent significant consolidation in 2023, creating winners who reaped substantial profits and losers left shivering in the cold, forced to tighten their belts.
Recently, numerous cross-border companies announced extended Spring Festival holidays that raised eyebrows. Some smaller firms implemented "super-long holidays" exceeding 40 days—with only statutory holidays being paid—while requiring employees to remain on call. This resembles semi-unemployment more than vacation time.
The phenomenon isn't isolated. Last year, one company facing plummeting sales granted staff four months' leave at 60% salary. Others vaguely suggested indefinite leave periods ranging from three to six months, leaving employees in limbo.
When business sours, reducing labor costs becomes the first austerity measure. These extended holidays reflect the broader industry freeze.
Shrinking Bonuses, Canceled Parties: The "Small Disappointments" of Year-End
Beyond forced vacations, year-end bonuses and company parties—traditional perks—have evaporated with declining orders. Some firms now split bonus payments, distributing half before the new year and the remainder in June. Others have eliminated bonuses entirely, a first for many employees.
Longer "holidays," smaller bonuses, and vanished benefits made 2023 exceptionally difficult for cross-border sellers and workers. These minor frustrations signal major industry challenges.
2024: Cross-Border E-Commerce Enters "Hard Mode"
Objectively speaking, the industry's golden age of rapid growth has ended. With increasing competition and tighter regulations, cross-border e-commerce has entered an era of cutthroat competition for market share.
New sellers typically endure initial losses before seeing returns, but many never reach profitability. The situation worsened in early 2024 when Amazon implemented policy changes affecting countless sellers, adding uncertainty to an already difficult landscape.
Amazon's New Rules: Tighter FBA Shipment Policies
Amazon announced that for shipments created after February 1, 2024, any FBA shipments not delivered within 45 days (domestic) or 75 days (international)—down from 90—will automatically close. This forces sellers to strictly control logistics timelines or face rejected shipments.
The change also prevents sellers from manipulating Amazon's algorithm by falsifying shipping addresses to direct goods to preferred warehouses, increasing operational complexity and costs.
New Company Law: Paid-In Capital Requirements Increase Pressure
Domestic policy changes compound the challenges. Revised Company Law taking effect July 1, 2024, requires all registered capital to be fully paid within five years of incorporation. Since cross-border sellers often register multiple companies with high capital amounts to pass Amazon's verification, this will significantly increase financial pressure, potentially triggering an unprecedented wave of company deregistrations.
The Future: Challenges and Opportunities
Cross-border e-commerce begins 2024 in "hard mode." While the future remains uncertain, competition will intensify, and natural selection will prevail. To survive, sellers must clearly understand their strengths and weaknesses, continuously adapt, and make strategic decisions.
Strategies for Overcoming the Winter Chill
Facing this challenging environment, sellers can consider several approaches:
1. Precision Operations: Move beyond growth-at-all-costs strategies. Analyze market data, precisely target customers, and optimize product listings to improve conversion rates.
2. Channel Diversification: Expand sales channels—independent websites, social media platforms—to reduce reliance on any single marketplace.
3. Brand Building: Develop distinctive brand identities to enhance recognition, reputation, and customer loyalty, creating competitive differentiation.
4. Supply Chain Optimization: Strengthen supplier relationships and streamline logistics to reduce costs and improve efficiency.
5. Risk Management: Monitor market changes and policy adjustments closely, adjusting strategies promptly to mitigate risks.
The cross-border e-commerce landscape presents both significant challenges and substantial opportunities. Only those who adapt, innovate, and refine their operations will emerge victorious from this intense competition.