September 19, 2019
Why You Will Fail In eCommerce Business? One Important Fact

Why You Will Fail In eCommerce Business? One Important Fact


in this video I’m going to tell you why ecommerce is failing for you and what you can’t really compete and be successful in it in the long term if you’re selling basic product so why ecommerce is failing first shipping costs you can’t really compete with Chinese companies when they ship their products to us or to Europe and this is because of the terminologies that you PU decided while a call in 60s it’s a trick that determines how much shipping should be subsidized and there are different groups for different countries so it ended up in a way that Chinese company will sheet the product and to last leg will taking care of US postal office all similar and last leg is more expensive that they get paid for so basically we are in situation that foreign companies get subsidized for selling their stuff in our countries here’s news article from post and parcel and you can find more of it in upu then you cook a little round and the thing is that even Amazon has complained about this system as you can see here foreign postal services teachers much lower rates and actually it subsidized so that USPS doesn’t cover even costs actual shipping costs just as I said it discriminates huge companies and this is the same in Europe as well then China Post pays much less for USPS to deliver to items than vice versa this is especially bad for small third-party vendors like I said when with ship blow shipping rates shippment from china to us address might be cheaper than shipment within the US and actually it was different before the system works so that in previous years us was a net winner this system but now it has turned around and Europe and us are losing because we don’t send so many packets abroad and we are a different groups different classes if you’re selling a mod it would cost like six dollars or so to send same mark to the same cheat code that’s a run six dollars right so for a Chinese company it costs less than six dollars to manufacture the product and ship it to us okay here we have a news article from The Wall Street Journal and here’s this multi mug the intrapreneur who manufactures patented multi-max he tells that he pays six thirty to ship the mud mud mud pit in the US and somebody’s selling fake mod mark including the shipping fees for 569 so he can’t sell his own product this is only shipping fees 630 and some competitor who manufactures fake multi mark sells it for 569 including to mark and from two upu today everybody has one volt and there are a lot of members and it’s unlikely that this will change anytime soon so brace yourself because the competition is getting worse and worse and you can’t really compete with prices like I said previously the problem is huge like mr. Donald Trump says and the shipping costs is that he pays six thirty inside us shipping fees USPS delivers packet from China to the US for deal and if the entrepreneur of mod mark wants to send the same packet to China that will cost $22 two-thirds big disparity and as more and more people buy from abroad the more losses will the u.s. be yes have the big disparity here is that the consumer behavior has shifted so the people buying from abroad so you can’t really compete with the shipping cost that they have is impossible so this obviously leads to a situation that Chinese companies will win they have cheaper labor to the total products or cheaper and shipping costs are less so there’s no way to compete with them with bulk products and also in Amazon it supports cheap prices for similar products so they will rank higher in search results and also it’s filled with fake reviews also so they are big problems only way around this is to have some major benefits over the competition and only way to do it is to innovate and maybe have patents or maybe have higher quality so you need to differentiate and that’s all the strategy that you can’t win with and all obviously big companies such as Amazon they have negotiated a shipping phase even less so with private e-commerce you can’t really compete with the basic stuff now I hope you found it insightful please comment to help me out if you have better ideas our concept so on I’m open to learn stuff okay cool yeah but

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