Image source: Figureworm Creative
Can clearing really solve the inventory problem? Real cases, how joint operations help overseas enterprises to year-end inventory turnover, sales ranking steadily improved.
In the eventful autumn of 2021, from the epidemic economy and platform policies, to the changes in the outlet and the intensification of the internal volume, some people are full of pots, and some people have no return. The 2021 cross-border circle tiebreaker is finally coming, and brands and manufacturers of all sizes are holding up a momentum to prepare for the black Friday Christmas and do the final sprint of this year.
There is only one month left before Amazon's year-end promotion, and there is not much time left for cross-border merchants. "The link is hanging! Brand removal! Slow sales are serious! Tens of millions of goods are about to be smashed! The goods are put in the warehouse, and every day they are counting the losses! "Compared with the high morale of previous years, this year, many merchants lamented that they did not seek to earn more, but to lose less."
<h1 class="pgc-h-arrow-right" data-track="6" > time is tight, the task is heavy, and the inventory is large</h1>
There are many pressures, slow payment collections, and tight capital flows. Since April this year, a sudden change in the direction of Amazon's policy has caught tens of millions of sellers off guard. In the tense market operation environment, in the face of full account hanging, link removal, tens of millions of yuan worth of inventory retention, and tight capital flow, many manufacturers or brands have to be forced to clean up the mess. In addition to the abnormal account caused by the platform policy, the problems of excessive stockpiling and slow sales of goods caused by operational strategies and market changes are common problems faced by more cross-border merchants. Raw material prices have risen, freight rates have soared, exchange rates have risen, and money is burning every day. Towards the end of the year, everyone has a common goal is to withdraw funds.
With limited resources and experience, in the face of problems such as link removal, account appeals without doors, and too much pressure on goods, many merchants have almost no solution, and are forced to choose the simplest and most rude "clearance" model. The clearance service providers on the market receive goods at a very low price, and they do not necessarily receive all categories, and after a round of communication, including the cost of export logistics costs, Amazon removal fees, etc., losses have become inevitable. Even if you choose amazon's official website's bulk clearance plan, you can only recover 5% to 10% of the average selling price of the product. The passive and crude clearance model does not seem to really solve the problem.
<h1 class="pgc-h-arrow-right" data-track="9" > average 2 to 4 weeks, war readiness pull</h1>
The account is hung, the link is hung, the brand is hung, the ranking is dropped... The hard-fought market is forced to hand over to people, under the huge financial pressure, there is no way back, how long will it take to come back to life? The answer is an average of 2 to 4 weeks.
Year-end inventory processing, one is to be fast, the other is to be stable. Successful brands may always be similar, but the reasons for the pressure are different. Tracing the roots can be summarized into 3 aspects: platform compliance, team professionalism, and user experience. Amazon's platform policy is tightening more and more, the market is moving from disorder to order, and what remains in the fight is always the "professional players" who "eat through the rules" and "products that really match the needs of users". The heart of fast inventory processing lies in this.
In the view of Haofang, who has been deeply involved in the brand for 15 years, Amazon's operation is a "professional, systematic, digital, and large-scale" game. Helping more than 100 companies grow from $0 to $10 million, Haofang has its own methodology for verifying success. There are 4 major stages of brand going global: positioning period, introduction period, rising period and stability period. Each stage requires different goals and strategies to complement each other's achievements. Before it can be launched, the product must pass real and reliable localization market research, seed user testing, product tuning, and MVP small-scale verification before it can start to be put on the market. With users and data as the core, we conduct market appearance/market share analysis, competitive product analysis and benchmarking of market segments, formulate accurate operation and inventory plans, and minimize overseas and inventory risks and capital risks.
With the blessing of professional methodology, mature operation team and massive industry resources, Haofang can quickly locate and diagnose brands or factories with high overall view and decision-making response ability with a high overall view and decision-making response ability, and coordinate multi-channel to start solving the problems of brand or factory accounts, links, inventory, funds and other issues, with an average time period of only 2 to 4 weeks.
<h1 class="pgc-h-arrow-right" data-track="14" > below, you can see the last 2 real cases, how to turn crisis into opportunity. </h1>
Case 1: A factory has been cooperating with a head seller for a long time, and the suspension incident has been greatly affected. Since the second half of the year, all links have been removed from shelves, online channels cannot be shipped, sales have no doors, and nearly 50,000 pieces of commodity inventory have been stranded in domestic warehouses, and the value of goods alone has reached 6 million yuan. If the dismantling process is adopted, or the offline dumping method is adopted, the enterprise will face huge losses. After collecting the product, inventory, account number and other information of the product, Haofang combined multiple factors such as profit, payment collection time, sales volume, cost, etc., and completed the preliminary investigation of the product in only 1 week, and the formulation of the new operation plan, and its sales volume and ranking have steadily rebounded after the implementation of the plan for 1 week.
Case 2: A brand of light string was recently attacked by competitors, the account and link were blocked 3 times, and 3 appeals were retrieved, and the account weight and quality were greatly affected. However, due to the better entry opportunities in the early stage, the brand light string rushed to the market segment TOP30 during the introduction period, and the brand was optimistic about the existing market, a large number of stockpiles, and the current stage of the stranded inventory has reached nearly 20 million yuan. If the goods are handed over to the service provider for direct clearance, they will face a loss of at least 70%. After Haofang recalculated the plan, it re-formulated a phased operation plan and accurate calculation for the brand in only 48 hours, and quickly formed a three-dimensional encirclement sales plan for the re-launch, and within 3 weeks after the launch, the product ranking quickly returned to TOP30 and remained stable.
Sometimes, when it seems like a crisis, but it can always be a Jedi, the key is to use effective resources and adopt the right strategy. It is precisely at such a critical moment that Haofang Group has accumulated 15 years of experience in a large number of high-quality brands going abroad, which can provide cost-effective services for the majority of brands and manufacturers, and jointly promote the vigorous development of chinese brand globalization.
More brands of dry goods abroad, welcome to continue to pay attention to Haofang Group.