2022 is nearing its end. It is customary for us to take stock of how the eCommerce website industry has evolved over the year. And then make some predictions for the next peak season.
There are opportunities for the eCommerce website shop
In public opinion, the industry has not been booming for some time.
Is this the case?
A few questions for your fellow sellers to consider.
Is your product category facing more and more competitors or less and less?
The sellers around you who receive the investment are more and more or less?
After thinking about these questions, the answer will come out by itself.
Undoubtedly, the eCommerce website industry as a whole is up. Of course, at the same time, the industry is also in a continuous reshuffle of changes. There are always sellers out, there are always new sellers in.
Is the website shop industry more and more prosperous, or more and more recession?
The industry is booming and the training and service providers in this industry are booming. For example, recently many service providers teach sellers about TikTok plus website shop. TikTok plays video fission, and then the website shop harvests traffic conversion. This phenomenon can answer the question.
What kind of stores are out in this industry?
Sellers who sell all kinds of products do not survive. The traffic cost is huge. Sellers who sell $20-50 products are almost all losing money.
What kind of eCommerce website shops is doing better this year?
Website shops that have their R&D and design capabilities. And these stores are doing well on brand promotion and celebrity IP cooperation.
Which website shops are more attractive for investment?
Shops that can create value for the product category are more attractive for investment. For example, the swimwear industry’s biggest seller Cupshe. This brand has the advantage is to continuing to create value for the category.
They continue to iterate on new models and attract different consumers. But innovation is very costly. And the cost of trial and error varies greatly from category to category. For some categories, it is impossible to constantly come up with new products.
Bright future of the eCommerce website shop
There are always sellers who ask: “Is it easy to build a DTC website shop?” Another question that follows closely is “What is the future of the industry and are there any opportunities?”
The industry environment and the overall outlook of the industry has minimal impact on individual sellers. The opposite is also true. You cannot tell the rise or fall of the industry just by seeing a few big sellers do well, or closed down.
Let’s take shein as an example. In the global apparel market size of more than 2 trillion, even if SHEIN can achieve a volume of 100 billion, the impact on the overall market is very limited. Not to mention other sellers. Of course, the birth of a few ‘SHEIN’ is not known in such a huge market capacity.
There will always be opportunities for DTC sellers. But sellers need to be more concerned about products, supply chains, and marketing.
Changes in the 2022 peak season
The expected sales level is related to the product category
For example, the outdoor category has seen high growth in demand this year. The outdoor camping category is the core this year, and sales have skyrocketed on all platforms.
The uncertainties brought about by the Russian-Ukrainian conflict, and the new demand generated under the European energy crisis. Or the new changes in policy, livelihood, supply, and demand in various countries under the influence of the global epidemic, as well as the World Cup at the end of the year.
These comprehensive factors affected global trade, the cross-border e-commerce field, and the DTC website shop. All these will bring new business opportunities. Sellers have to assess and judge according to their situation.
New traffic opportunities for eCommerce website shop
The cost of traffic and changes in the policies of traffic platforms are arguably the biggest variable for sellers. The traffic platform policies are uncontrollable. We might consider the efficiency of sellers’ use of traffic this time and new traffic opportunities first.
Conclusion 1: The efficiency of testing traffic will improve
For most sellers, if the ads don’t show certain bits of help within the 7–10-month input cycle. You should not decisively invest additional money. So sellers who can adhere to this year’s peak season, and still put investment in advertising have improved above a breakthrough in the conversion rate of advertising.
Conclusion 2: New e-commerce channels are new traffic opportunities
E-commerce platform like amazon is still large in volume. But it is difficult for them to reach content e-commerce such as TikTok in growth rate and customer stickiness. If the e-commerce platform fails to change, live-streaming and short video traffic portals will completely replace these platforms. Consumers look at the fun video and then buy. They do not have to wait for the big promotion. So the new traffic opportunity may have appeared.
It’s the best time to clear inventory due to decreased logistics costs
During September, the spot price from Shanghai to Los Angeles dropped 11% compared with last week. The price dropped 70% compared with the same period last year, according to public data.
Logistics costs are indeed down, but how much does this cost impact sellers?
Logistics costs are down significantly but overall sales are not as good as they used to be. Consumer demand is unchanged, merchants still have to continue to meet the various segments of consumer demand. Sellers need to improve the product in various dimensions. And should avoid a single low-price strategy.
In previous years, Christmas items have been selling since six months ago. But this year, the overall order relative to previous years has fallen to less than 50%. It can be seen that the backlog of goods caused by the supply chain tension in previous years is still very serious.
80% of sellers’ overseas warehouse stock operations are therefore facing problems. 70% of sellers choose to dump below-cost prices at low prices. While 10% of sellers eventually choose to destroy the goods because of long-term stagnation.