What is the price war?

"Editor's note" The rapid development of the Cross-border electric business retail market, the more the price war has become more and more can not be ignored. Because of the impact of the price war, the most competitive 3C products of the gross profit has fallen sharply to less than 10%. So what is the cause of such a fierce price war? How do we avoid price wars? This article by Perome blog feeds, the author is perome.

What is the price war?

Price war for a long time the reasons for the main three: low threshold, customer groups to "cock silk" mainly, the seller of products with serious homogeneity.

First of all, cross-border electric operators have low barriers to entry. As long as you have a computer connected to the network, a little knowledge of foreign languages, even do not need to understand, with the help of Google translation can be in the fast-selling fool-like shop. In the vicinity of Huaqiang North, Shenzhen, you can see a lot of couples and partners of small sellers, men responsible for technical matters, women responsible for financial and customer service, they received orders in the vicinity of the Huaqiang North market to take goods, and then pack a freight forwarder to send the parcel out.

Secondly, the main customer base of Cross-border electric power is not overseas "Gao Shuai", but overseas "cock silk", they are extremely sensitive to commodity price. First of all, why do we analyze the group of overseas buyers to buy the goods on the cross-border electric dealer website? The first reason is because it is cheap, and second is to buy the goods they need locally. In the case of Americans, if an Android phone in a local store needs 300 of dollars, he uses Google's search engine to find an Android phone with a global package of just 100 dollars worth of postage, and he is naturally happy to save 200 of dollars to order, and where the delivery is not so important to him.

Cross-border electric dealer retail website

Finally, the sellers of the products sold by the homogenization of serious. As shown in the above picture of the Independent, almost 50% of the same products, most of the products from Huaqiang North mobile phone tablet, mobile phone accessories and from Taobao apparel. The openness of the supply, the transparency of prices led to an increasingly fierce price competition between independent stations, from the global free of postage to the prevalence of tools to reduce the seller's profits. When an overseas buyer wants to buy an iphone 5S holster, after searching the internet to find thousands of of the same styles from Chinese suppliers, the determining factor for his choice of purchase is the price.