[Payoneer 웨비나] 중국 이커머스 전문가와 이야기하는, 코로나 바이러스로 인한 중국 물류 시스템 변화 및 운영 방법
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페이오니아가 준비한, 코로나 바이러스로 인해 어려움을 겪고 있는 이커머스 셀러들이 지금 꼭 알아야할 웨비나 강의를 지금 확인하세요!
![[웨비나]
중국 이커머스 전문가와 이야기하는,
코로나 바이러스로 인한 중국 물류 시스템 변화
및 운영방법
Payoneer Korea
March 2020](https://image.slidesharecdn.com/mar19deckfinal-200323083101/85/payoneer-1-320.jpg)
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[Payoneer 웨비나] 중국 이커머스 전문가와 이야기하는, 코로나 바이러스로 인한 중국 물류 시스템 변화 및 운영 방법
- 1. [웨비나] 중국 이커머스 전문가와 이야기하는, 코로나 바이러스로 인한 중국 물류 시스템 변화 및 운영방법 Payoneer Korea March 2020
- 2. Agenda 2 코로나19 의 영향에 따른 이커머스 비즈니스 현황 중국 이커머스 셀러들의 대응 그리고 현재 중국 물류 서비스 운영 현황 글로벌 이커머스 셀러들을 위한 운영 방안 제안 Q & A
- 3. What does COVID-19 mean for Cross-border eCommerce Sellers Shawn Zhao CEO, Co-founder, HyperSKU 2020SHENZHEN
- 4. About Me & HyperSKU 4 CEO of Etailerhub Former Country Manager of Payoneer Greater China Former senior consultant of Channeladvisor CEIBS EMBA Advisory board member
- 5. 18 categories, 1 Millions SKUs 7 days to EU+US, local couriers • Niche covered • Source directly from manufactures Products • Customized shipping solution • 7 days to EU, US, UK & etc • Full tracking service Shipping • Powerful back-to-front SaaS to streamline process • Shopify integrated, WooCommerce upcoming • Dedicated business consultant Operations Translating Chinese Sellers’ Secret Weapons 5 About Me & HyperSKU
- 6. • WHO announced COVID-19 outbreak a pandemic • The total number of cases and deaths outside China has overtaken the total number of cases in China • EU imposes country-level lockdown, self-isolation, restrictions on non-essential travel to EU and ban public gatherings • Public Health England: As many as 80% of the population are expected to be infected with Covid-19 in the next 12 months, and up to 15% (7.9 million people) may require hospitalisation • US CDC recommends that for the next 8 weeks, organizers cancel or postpone in-person events that consist of 50 people or more throughout the United States COVID-19 Situation Worldwide 6 WHO Situation Report, March 16, 2020
- 7. • People will spend most of the time at home for self-isolation • The need for home entertainment, basic supply, kitchen supply, health, gym, beauty, insurance will increase • The need for clothing, transportation, fashion, travel will severely decrease • Hoarding on basic supplies and medical supplies becomes a trend COVID-19 Situation Worldwide 7
- 8. COVID-19 brings uncertainty to the platform policy • Google and Facebook have banned medical face masks ads and other ads capitalize off COVID-19 • Amazon make way for FBA sellers who have household and medical supplies Direct shipping Seller Fulfill Prime
- 9. • Except those in Hubei Province, all factories and companies are getting back to work and production • Zero local transmission case in all provinces except Hubei Province • Government has started bailouts - but are the factories really back to work? COVID-19 Situation in China 9 China NHC Situation Report, March 17, 2020
- 10. • Enterprise above designated size: • Special permit and bailouts from government • Foxconn, an Apple Inc. supplier, estimate only 50% worker are back • SMB size: • Strict and complicated application for work resumption • Shortage of workers, raw material, and rise of cost • How many Chinese factories are back to work? • The severity of the epidemy in the area where the factory is located • Availability of labour force (14-day self-quarantine after travelling) • Availability of raw materials • Chinese eCommerce sellers are back to work – demand is rising high COVID-19 Impacts on Supply Chain in China 10 By our estimation and recent communications with SMB factories, only 80% of them are back to work and they resume 60% of capacity on average.
- 11. • Inbound China • SF express and China Post has been the only shipping courier available for more than 30 days. • Outbound China • Most non-Chinese airlines have cancelled flights to Mainland China and Hong Kong. The shipping capacity has dropped down 90% • Chinese eCommerce sellers return to business, the gap of high demand and low supply on international shipping is getting huge • China Post has announced that shipping capacity has been impacted severely and parcels are piling up, waiting to be loaded and shipped out COVID-19 Impacts on Logistics Chain in China 11 Shipping fee outbound China has increased and efficiency are impacted a lot
- 12. • Online shopping is booming compared to brick-and-mortar shopping • Customers will once again embrace slower delivery • Shoppers always love a good deal • More time spent online Silver lining 12
- 13. • Secure inventory with supplier; get backup supplier • FBA seller: work with US warehouse or consider dropshipping model • Transparent communication with customers • Price Adjustment • Focus on one or two most-profited countries, and focus on selected SKUs • Advertisement & Promotion strategy Challenges: What strategy should sellers take? 13
- 14. • Source from factories directly • Work with your factory to ship orders directly from China with express shipping • EU & US • New market: Mexico, SEA • SFP or oversea warehouse service What HyperSKU can do for Amazon Sellers 14 HyperSKU + Dropshipping 4. Order information sent to HyperSKU 5. HyperSKU send products to end customers
- 15. Think Out of The Box
- 16. THANK YOU 16 THANK YOU Wish you and your loved ones health and safety! FB page: https://www.facebook.com/Hypersku/ email: support@etailerhub.com Website: https://hypersku.com/
- 17. Q & A
Notas do Editor
- Hi everybody, very nice to know you. First of all, I wish all of you and your family are healthy and safe. No matter how business goes, healthy matters the most. Thanks for Payoneer to invite me for sharing my understanding about the corona virus issue and how it affects our industry
- A bit about myself. Before I founded etailerhub, I was^
- HyperSKU is the first solution we launched, it mainly focus on supporting sellers outside China to directly source from manufacturers in China and ship to the consumers worldwide. HyperSKU manages sourcing and fulfillment for our customers end to end
- According to World health organization, the corona virus has become a global pandemic, more and more countries are executing the lockdown policy to prevent further infection from import cases. This chart from JP Morgan shows the status by country. China now gets to the recovery period, less and less people are reported to be infected or death everyday, medical forces have been withdrawn from Wuhan back to their origin place. I think Korean is entering to the recovery period as well. However, a lot of countries in Europe and US are just getting into the acceleration period
- Being isolated at home changes the way people live and affect the way people consume. People start to stock grocery & medical supplies,sheld in the supermarket are empty. We see a significant demand increase on small gym equipment and kitchen supply on marketplace in China such as Tmall, JD & PDD. For virtual product, we see online game users increased 12.67% and online education thrive in the past two months, Tablets are all sold out during Chinese new year. This could happen soon in the other countries. On the down side, people buy less clothing and outdoor equipment.
- I want to point that the virus issue brings lots of uncertainty to the cross border ecommerce, we should pay special attention to the policy. As you can see here, Facebook & Google banned all ads for masks which lots of dropshippers were selling, some of them even hold inventory that caused a big issue for them. On Amazon side, Amazon make way for sellers who sell certain categories, the other categories are now on hold to stock in FBA. So you need to think of other alternatives if you plan to send inventory to FBA. There are two options, one is direct shipping from origin, Korea or China, we provide express shipping service from China by parcel, average 10 days. Another one is SFP, seller fulfill prime, I know some Chinese sellers get the authority from Amazon that they can ship from their warehouse in EU & US, still mark as Prime as long as they meet the Amazon standard. You can check wether there is an same available service in Korea
- The map photo on the right side show you the resumption status in China by province, dark color means high resumption rate. As you can see from the map, most of the provinces along the coast have high resumption rate. Take Guangdong province as example, where most of the electronic products are produced, the rate is 95%. Does that means 95% production capacity are back?
- On the supply side, government prioritize the enterprises to back to production, while the production capability is still less than half due to the limited manpower. Apple also cut the forecast in their investor letter. Small & medium size companies are back to work after getting the official approval from local government, while they also need to face the challenge of manpower and raw material shortage. For Chinese Amazon sellers, they have lots of inventory orders placed before Chinese new year are now at backlog status, they all pushing hard on the factories to fulfill their orders that makes the production capability even short-handed. As HyperSKU is helping sellers sourcing and fulfill from China, we are working with hundreds of vendors. Base on the data we have, 80% of suppliers are back to work while they can only fulfill around 60% of our sourcing request.
- Logistics is another critical factor. For the domestics in China, the air freight shipping was the only option 3 weeks ago. Now 70-80% ground transportation are back to normal. so the domestic shipping is on longer an issue. But the outbound shipping are facing a tough challenge. As more and more countries close the gate, most of the passenger flights are canceled. This affects the global shipping because each passenger flights also carrie cargo pallets. 90% of international flights from China and Hong kong are canceled. To maximumize revenue, cargo flight companies raise price and change shipping route to shorten the distance. For now, express shipping company such as Fedex, DHL and SF express are more reliable because they own the flights. As the demand is much higher than supply, the shipping cost can be expected to increase 15-20% in the short term
- The pandemic is absolutely a terrible thing which hurts business and economy badly. But we have to stay optimistic and find sliver linings. Here are my thoughts why eCom is not dead Online shopping is booming compared to brick-and-mortar shopping stores are closed due to COVID-19. people still want to spend money. 2. Customers will once again embrace slower delivery It again takes 2 weeks or more to ship an order to US/EU customers’ doorstep. Direct shipping from China takes 10 days to US; 7 days to EU; 3. Shoppers always love a good deal These two screenshots are from a friend who went on shopping frenzi yesterday. What are these? So in the past two days the biggest department stores in US were offering bigger promotions online than those during Thanksgiving, because they’ve decided to close stores for at least 2 weeks. I’m not sure why people still need fashion bags during social isolation, but clearly a deal means a deal. 4. People spend more time online browsering.+ livestreaming trending
- There is a Chinese old saying: never put all eggs in one basket. Company like Walmart and B&Q always have backup supplier from different terrtories to prevent systematic risk like the virus. Although we are not that big, we should still have contengency plan. As mentioned before, SFP & dropshipping can be the model to explore. Let me know if you can't find SFP vendor in Korea, maybe we can help you to work with Chinese vendors Be transparent to customers, it's understandable that the delivery will be slow or out of stock, don't hold problems until customer make a dispute I also see Chinese sellers raise price to make the inventory sell in longer time with a higher margin. The pricing strategy need to be align with your inventory refill sechedule and turnover rate. There are things out of our control, what we can control is to limit the virables we can. Limit SKU, short list the selling countries and hold new product development plan would be a safe play In the dropshipping model, I see sellers launch pre-sale model with descent discount. They manage the customer's expection on delivery by this creative idea. I know it's not applicable to Amazon while just an idea to open mind
- At the end of the session. I would like to share an example of thinking out of the box. Most of sellers are buying and selling masks to gain a quick money, while one of my friend work with his team remotely when isolated at home to develop this electronic mask. In my opinion, it's a really cool product with uniqe value and a long product life cycle. Just need to go one step further than the others. Let us know if you are interested.
- 이제까지 페이오니아의 다양한 서비스와 제품을 살펴봤는데요. 새로운 무역에 대한 시장성과 그를 바라보는 페이오니아의 관점과 제공되는 서비스에 대해서 공감하셨는지 모르겠습니다. 사실 페이오니아는 이제 막 한국에 지사를 설립하고 영업활동을 본격적으로 개시하는 디딤돌 위에 있습니다. 저도 페이오니아의 비전과 시장성에 대해서 좀 흥분된 마음으로 입사를 하였구요. 앞으로 페이오니아 코리아를 많이 지켜봐주시고, 크로스보더 트레이딩의 시장확대라는 시대적 명제를 위해 함께 해주시기를 부탁드립니다. 여기까지 국경없는 무역을 위한 디지털 결제 솔루션이라는 주제로한 제 발표를 마치겠습니다. 감사합니다.