In the United States and Europe, many terminal retailers and consumers may be unclear that most products purchased are made in China, and it is inconceivable that there is a world of difference between transaction price and factory price of such products.
China is undoubtedly one of the world's largest trade exporters, and especially in accessories industry, ranks first in the world. Relying on the advantages of more centralized factories, quicker market response, lower supply price and smoother logistics channels, China's products have accounted for more than 60% of European and American market shares.
Facts speak louder than words. One of our colleagues from Mississippi has experienced the unfair price. I was impressed because she was so attractive wearing the pretty turquoise necklace set the first day when she came to our company. During chatting time, we knew that she bought the set with $34 at a local jewelry store. In fact, the product was made in Zhejiang, China and it was sold at $3.13 only.
We were all surprised at the inflationary price and our colleague was also a little upset about her experience.
In fact, it is reasonable taking into consideration that, after the products are finished, all middlemen, from China's foreign trade corporations, America's first-class wholesalers, second-class wholesalers, and even third-class wholesalers to retailers, have to earn some profits by raising the price to some extent. No one will make non-profit business, so it is a matter of course when the terminal consumer bought a necklace set with $34 while the factory price was only $3.13.
Nowadays, since cross-border e-commerce is developing rapidly, the abovementioned price maybe really a little high. Development of cross-border e-commerce has brought tremendous changes in procurement channels of retailers, and traditional trade procurement channels were almost replaced by e-commerce platform. As one of the most key factors influencing the procurement, product price begins to come down to earth by skipping middlemen.
Taking into consideration difference of professionalism and expenses among those platforms and bargaining power of factories, price correction condition may be different to some extent. Talking about the necklace set again, it is sold on Amazon at $7.99 at least, $6.43 on AliExpress, while $3.13 on FashionTIY-an e-commerce platform professionally supplying fashion jewelry and accessories.
Considering the features of fashion accessories including various styles, fast updates and low price, most terminal retailers conduct procurement by mode of multi styles, small amount and high frequency in order to reduce inventory pressure and keep up with the latest trends. Driven by current situation, traditional bulk wholesale trade mode has been flagging. Though styles of products on large platforms are rich enough, unified standards on logistics cycle and product quality are unavailable since such products are often supplied by a third party, which fails to meet retailers' demands on procurement.
For example, restricted to platform rules, a jewelry store on AliExpress is not allowed to operate glasses or hats. In case of purchasing such different categories, the retailer must select from several stores, which is bound to cause disunity of logistics and product quality and decentralization of procurement so that discounts based on total amount are unavailable. Having taken such issues fully into account, FashionTIY integrates all the products together and adopts the sales mode of unified order receiving, quality inspection, packaging, shipping and after-sales service, which effectively avoids disadvantages of decentralized procurement and ensures retailers' worry-free procurement.
As an F2B e-commerce platform of accessories industry independently developed and operated by FashionTIY, Inc-an innovative enterprise of the United States, FashionTIY mainly engages in fashion jewelry and accessories. Selecting trustworthy and quality manufacturers from China as the suppliers, the platform devotes to providing global small and medium-sized accessories retailers with rich products and high-efficiency services. At present, the platform has developed 15 categories of jewelry and accessories, and established cooperation relationship with more than 30,000 merchants and users from Europe and the United States, the Middle East, Russia and other regions. Its advantages in product price and professional operation have strongly attracted a large number of terminal retailers, and the flagship mobile terminal app provides such retailers with non-stop and convenient procurement services.
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Get it on Google Play: https://play.google.com/store/apps/details?id=com.faws.fawholesale