[Heavy weight] The United States or cancel the small parcel tax-free policy, China’s cross-border sellers how to deal with?

Recently, according to foreign media reports, the U.S. government announced that it is taking steps to avoid a large number of low-value goods below the $800 threshold from entering the U.S. duty-free.

Part.01 Changes in U.S. Small Parcel Tax Exemption Policy

The United States Government has announced that it will take steps to combat the unsafe and unfairly traded transportation of small amounts of goods, aiming to pass comprehensive minimum reform legislation by the end of this year.The new rules will affect about 40 percent of imports from China, with textiles accounting for up to 70 percent.

Cross-border e-commerce platforms have already begun to take measures in the face of the upcoming new regulations.Temu said its growth is not dependent on the current tax-free policy and is actively reviewing proposals.Shein, on the other hand, said it looks forward to working with stakeholders on reforms. Meanwhile, share prices of companies such as Pinduoduo and Alibaba have already been affected, reflecting the market’s sensitivity to policy changes.

Part. 02 Cross-border sellers, how to save for a rainy day

In the face of changes to the $800 tax-free policy, cross-border sellers need to revisit their operational strategies to adapt to the new market environment. Here are some rainy day suggestions for reference:

I. Strengthening market analysis and forecasting

Focus on policy developments: Closely track changes in tax policies in major target markets, including adjustments to tax exemptions, changes in tax rates, etc., in order to make timely adjustments to business strategies.

Assessing the impact: Analyzing the potential impact of policy changes on commodity costs, selling prices, market demand and consumers’ willingness to buy, and assessing the risk resistance of our own business.

II. Optimizing supply chain management

Adjustment of inventory layout: Consider setting up warehouses in target markets or neighboring areas and adopting the overseas warehouse model to reduce logistics costs and shorten delivery time in order to cope with the challenges posed by changes in tax exemption policies.

Diversified sourcing channels: Explore diversified suppliers and sourcing channels to reduce dependence on a single market and improve supply chain flexibility and stability.

III. Adjusting pricing strategies

Flexible Pricing: Flexibly adjust the pricing strategy of goods in accordance with the changes in the duty-free policy, and attract consumers through preferential promotions and package sales.

Cost control: Strengthen internal management, optimize production processes, reduce operating costs and provide room for adjusting pricing strategies.

Provide value-added services: Enhance customer satisfaction and loyalty by providing quality after-sales service, logistics and distribution and other value-added services.

IV. Expanding new market opportunities

Tapping into new markets: Actively seek out and explore new market opportunities, especially in regions where tax policies are relatively stable and market demand is strong.

Focus on Emerging Markets: Focus on the development trend of emerging markets and changes in consumer demand, layout and seize market opportunities in advance.

Part. 03 WTS platform will fully assist cross-border sellers

In this change, it is recommended that cross-border sellers (especially cross-border small packet independent station sellers), as soon as possible to assess the adjustment of logistics and warehousing structure. Sellers with overseas warehouses have a greater advantage in terms of tail delivery time and other aspects. For many products, it can reduce logistics costs as a whole.

As a leader in end-to-end supply chain solutions for cross-border logistics, WTS platform provides one-stop solutions from cross-border logistics to overseas warehousing and will fully support every cross-border merchant.

Sellers who need U.S. overseas warehouse, welcome to contact us!

Total logistics, one-stop solution

Relying on the strong global transportation network of WTS, this overseas warehouse provides a full range of logistics solutions covering one-piece delivery, self-pickup, trucking delivery, FBA transit, etc. It brings cost-effective, efficient and convenient logistics experience for cross-border e-commerce, logistics service providers, warehouse service providers and other partners. It brings cost-effective, efficient and convenient logistics experience for cross-border e-commerce, logistics service providers, warehousing service providers and other partners.

Medium and large cargo logistics, professional and worry-free

In the face of the booming demand for medium and large items in the market, WTS U.S. Overseas Warehouse has crafted an exclusive logistics program. With a professional team of operators and advanced handling equipment, we easily manage the challenges of warehousing and transporting furniture, home appliances and other bulky goods, ensuring that each item is presented to consumers in the best possible condition.

Transparent management, full control

Through the advanced TMS/WMS business management system, we can realize the digital and informationized management of the whole chain business link. You can grasp the status of goods, inventory and logistics progress anytime, anywhere, so that everything is under control.

The WTS platform firmly believes that through our joint efforts and intelligent responses, we will be able to open up new opportunities for development in the midst of change!