In the first half of this year, the exchange rate of the RMB against the U.S. dollar fluctuated to a certain extent due to changes in the U.S. dollar index. It appreciated at the beginning of the year and then depreciated slightly. Since the beginning of July, the fluctuation of RMB exchange rate has increased. On August 1, the central parity of the RMB against the US dollar was lowered by 128 basis points to 6.8293, the lowest since May 31 last year. On the 3rd, the central parity of the RMB against the US dollar rose by 351 points to 6.7942, achieving a strong rebound. Experts say the yuan will run steadily after the rebound.

· Compressed profit margins

       Since many cross-border export e-commerce companies are denominated in US dollars (foreign currencies) and then settled into RMB, the original net profit rate of the entire industry is only about 5%; in addition, sellers mainly earn the difference between suppliers and retail prices. The bargaining power is weak, and the appreciation of the renminbi does not have a small impact on cross-border export enterprises.

For example, if you could earn a price difference of 1 US dollar at the time, the exchange rate was 1:8, that is, it could be exchanged for 8 yuan; now the price difference is still 1 US dollar, but the exchange rate of the appreciation of the yuan has become 1:7, and it can only be exchanged for 7 yuan. .

· Good for exports

For export e-commerce companies, the exchange rate change is good for them. For foreign buyers, the price of the same RMB in US dollars is lower, which is conducive to increasing sales.

· Position management

· Foreign exchange cash flow management

· Identify foreign exchange exposures and risks

· Use financial products to avoid risks

Products include a series of product portfolios such as forward, spot, swap, and foreign exchange options, which can help companies systematically manage foreign exchange cash flows around the world.

Of course, currency fluctuations are not the only challenge

Compliance operation, VAT registration

Brand filing, trademark registration

......

Ouyang Cheng, director of Ali Cross-border E-commerce Research Center, believes that cross-border e-commerce needs to face four major challenges. In the end, cross-border e-commerce is facing a market of trillions of yuan. How to sell goods to all parts of the world is a very complicated matter. Now, why not do the basic construction work in a down-to-earth manner and register for a VAT tax number. What about a brand record?