The toy category soared 434.7%, and the single volume recovered nearly 80%! Has the market really come back?

"Sellers say overall orders have been picking up, with us stations recovering by 80 per cent."

France gradually lifted the embargo on May 11, Australia gradually relaxed its social isolation policy on May 8, And Serbia lifted its state of emergency on May 6... Information about the release of overseas closures and the resumption of work and production may indicate that a wave of new consumer demand is about to be released. Many cross-border sellers are aware of this, and the cross-border e-commerce market has shown signs of recovery.

From a sharp decline to the overall recovery recommended appropriate stocking

An Amazon seller told Hugo that while there were no breakouts in May, overall orders have been picking up, with the U.S. site recovering 80% of orders. "It depends on who has the most stock," he suggests, and this is the time to properly stock up through FBA and overseas warehouses. As things stand, if orders continue to pick up, he will consider restarting the recruitment drive.

According to one Wish seller, the total number of orders recently doubled. In early April, rising logistics forced a surge in prices and a sharp drop in orders. Since mid-to-late April, orders have picked up." A few years ago, there were more than six or seven hundred orders a day. Now the number of orders is not stable. "

As for stocking up, he said he would not stock up too much, just like usual. Although some countries have released the lockdown, which will release a wave of consumer demand, logistics has not yet returned to normal, and it will take some time for overseas consumers' purchasing power to recover. Therefore, there is no need to rush to prepare goods, but sellers must keep an eye on the recovery of overseas markets.

The toy category surged 434.7 percent as cargo volumes gradually recovered

In the face of the growing outbreak overseas, Brazilian customs offices have been operating from home from March 23 to April 22, bringing many customs affairs to a standstill. Sheng Qijun, sales director at Shanghai Yichuan Supply Chain Management Co LTD, told Hugo that "since February, Brazilian ports have been severely affected, with Rio Grande dropping by 50 percent, followed by Santos (28 percent) and Tubaran (23 percent). Since March, freight volumes have recovered, but they are still lower than before; After April, such as April 23, some customs officers return to their posts, customs clearance is carried out normally. Production has gradually returned to normal, shipments have also increased year-on-year, and the number of sellers in stock has increased considerably."

Hugo learned that due to the impact of the epidemic, offline shops and public places in Brazil have been closed, and the vast majority of people have switched from offline transactions to online consumption. As a result, online orders in Brazil were up 30-40 per cent in March and April compared with the same period last year. But the surging sales of products are mainly epidemic prevention products, household goods, indoor sports, food and so on.

According to the "product e-commerce during the covid-19 pandemic" study, after analyzing 25 million orders from more than 4,000 online stores since March 1, April 25, 2020, the study only considers online sales of physical products,

Excluding services such as travel and tourism or mobile applications, the results show:

Toys and games grew by 434.70%, supermarkets (270.16%), sporting goods (211.95%), home appliances (96.66%) and cosmetics (88.02%).

"If there had been no outbreak, the sales volume in Brazil would definitely have gone up at this stage. Whether it was pre-stocking or late shipment, the shipment volume would have doubled or so. But because the outbreak, in March of this year compared to a year ago, in addition to epidemic prevention etc. Just need to products, cross-border electric business platform orders declined by more than 50%, as the overall volume decline, our business in the Brazilian market has also been affected, but April, orders, has been restored to about 80% last year, in May, believe that things will get better." "Sheng Qijun said.

Overseas epidemic situation still severe recovery time may be prolonged

As for the signs of market recovery, some sellers hold different views, believing that the recovery time may be prolonged. Their biggest concern is the logistics problem. "If logistics prices can't go down, how can they recover? I can't go back to last year." In addition, it will take some time for the epidemic and the resumption of work abroad. "Only when there is income from the resumption of work, will there be more consumption. It is ok to resume work when the epidemic is under control, but now the outbreak abroad is not under control and may even rebound."

According to Hugo, new cases in The United States are still at a high level. By May 08, a total of 1292144 cases of pneumonia had been diagnosed by novel Coronavirus, 216,856 cases had been cured and 76,908 cases had died. Affected by the epidemic, there are still many uncertainties in the US market, and logistics channels are not smooth.

Amazon recently announced that the U.S. Postal Service has suspended international mail service to some destinations due to widespread shipping cancellations and restrictions. Another revelation said, the United States a well-known logistics operators basically do not receive goods, in a state of paralysis.

More than two-thirds of people in New York, New Jersey and Connecticut, the hardest-hit states, believe local governments should make epidemic prevention a priority, according to a survey released by the US media. Of those, 71 percent said government officials should focus on implementing "home orders" to combat the epidemic. Only about 26 percent said the state should shift its focus to getting back to work.

As a result, it is not as easy to get America back to work and production, and it may take longer for the real market to recover. For sellers, the market recovery is a positive sign, but how to make adequate preparations in the recovery period is the next issue that every seller must think about.