As the U.S. dollar exchange rate surpasses 7, cross-border e-commerce sellers who should be benefiting from increased profits are instead facing unprecedented challenges. The convergence of multiple factors—including recurring pandemic waves, geopolitical conflicts, and economic policy adjustments—has led to a sharp decline in orders, with exchange rate advantages failing to offset the impact of plummeting sales. What was anticipated to be a peak season now appears remarkably subdued.
Industry insiders reveal that some cross-border e-commerce companies have already initiated early holiday leave policies due to collapsing sales. These firms typically pay employees 60% of their salaries while requiring them to work remotely, maintaining accounts and handling essential tasks. Compared to outright layoffs or unpaid leave, this approach appears more humane. However, it remains merely a stopgap measure—if the sales downturn persists, businesses may still face closure.
A Sector in Flux
This year has seen frequent reports of layoffs and bankruptcies in the cross-border e-commerce sector, with many operations specialists transitioning to other industries. Despite these challenges, new sellers continue flooding into platforms like Amazon. The company's recent global store registration initiative underscores this trend. New entrants generally fall into three categories:
- Newcomers optimistic about Amazon's potential: Primarily comprising factory-based businesses transitioning to e-commerce and domestic online sellers seeking international expansion.
- Established sellers stockpiling accounts: Veteran merchants purchasing backup accounts to hedge against potential suspensions, with rising costs due to Amazon's stringent verification processes.
- Account hoarding intermediaries: Service providers accumulating Amazon accounts for resale to sellers lacking proper registration documentation.
Survival First, Growth Later
In this challenging climate, "survive first, grow later" has become the industry mantra. Experienced sellers are already planning their spring product lines, recognizing that sustainable growth requires patience, confidence, and gradual product ranking strategies. Optimizing inventory management, shipping logistics, and return processes—while ensuring seamless coordination across all operational stages—has become essential for maximizing profitability.
Facing an uncertain future, cross-border e-commerce sellers must carefully assess market risks and adapt strategies to survive intensifying competition. Only by continuously strengthening core competencies can businesses achieve sustainable growth in this evolving landscape.