Cross-border E-commerce Promotion Trend White Paper

Preface

In the wave of global commerce, Taiwanese sellers are actively expanding internationally with their strong supply chain systems and excellent manufacturing capabilities, demonstrating robust export advantages. Supported by proactive government policies and enterprise support for brands going global, Taiwanese sellers have secured a significant position in the global e-commerce landscape, playing an increasingly crucial role in consumers' lives worldwide.

In this diverse commercial environment, promotional activities are not exclusive to peak seasons but are key strategies that run throughout the year, driving sales and brand building. They not only attract consumer attention and stimulate purchasing desire but also help sellers stand out in fierce competition, leading to significant growth in traffic, sales, and brand visibility. However, facing cultural differences across different regions, Taiwanese sellers need to consider local demands when formulating promotion strategies, presenting both opportunities and challenges. How to design and execute cost-effective promotional activities tailored to local needs has become a major challenge for cross-border sellers.

Amazon, with its operational network reaching over 200 countries and regions worldwide, is deeply rooted in the global e-commerce field and has developed diverse promotional activities tailored to different regional characteristics. To assist Taiwanese sellers in developing promotion strategies that align with local consumer habits, Amazon has launched the 'Cross-border E-commerce Promotion Trend White Paper.' Through trend analysis, seller surveys, and seller interviews, this paper provides an effective promotional activity guide, aiming to crack the code of promotion traffic and achieve sustained business growth.

Contents

In the following chapters, based on research and analysis, Amazon will share 3 major global cross-border e-commerce promotion trend discoveries, as well as successful promotion experiences from Amazon sellers:

1. More focused and refined promotional activities to improve overall promotional effectiveness (Pages 01-03)
2. Compliant and cost-effective pricing strategies influencing consumer purchasing intent (Pages 04-09)
3. Flexible promotion rhythm and combination as a key factor in improving promotional effectiveness (Pages 10-19)
4. Amazon seller promotion experience sharing (Pages 20-22)

01 More Focused and Refined Promotional Activities to Improve Overall Promotional Effectiveness

In promotional activities, pursuing a broad product line may not always be the best strategy. Focusing on enhancing the appeal and sales of specific products, especially high-quality ones, known as 'hero products,' can be more conducive to achieving promotional goals. By optimizing resource allocation and strategies, concentrating efforts on potential popular products can more effectively capture consumer attention and potentially enhance overall promotional effectiveness.

With the increasing adoption of refined operational concepts, seller trends in promotional product selection are gradually shifting from mass submissions to targeted, high-quality submissions. Seller surveys indicate:

• In 2024, the number of single products participating in promotions accounted for 47% of all sales units, while hero products accounted for 12% of units sold during promotions.
• 12% of hero products contributed 76% of the total sales generated by the promotion.
• Over 70% of surveyed sellers successfully created hero products during promotions.

Key Considerations for Selecting Hero Products:

• Data Analysis: Utilize big data analysis tools to identify potential hero products by analyzing historical sales data, consumer feedback, and competitor dynamics.
• Consumer Insights: Deeply understand target consumer needs and preferences, including their sensitivity to product features, pricing, and brands. Gather this information through surveys, social media monitoring, and customer feedback to better position hero products.
• Product Differentiation: Stand out from similar products with unique selling points. Sellers should look for products with innovative features, design, or added value that capture consumer attention and drive purchases.
• Brand Positioning: Select hero products that align with the brand's image and positioning to reinforce brand consistency and leverage brand loyalty for sales.
• Supply Chain Management: Ensure a stable and reliable supply chain for selected hero products to avoid stockouts during high demand, which can directly impact promotional success.
• Marketing Strategy: Develop a comprehensive marketing strategy for hero products, including advertising, social media promotion, and KOL collaborations, to maximize their impact.
• Pricing Strategy: Competitive pricing is key to attracting consumers. Sellers must consider costs, profit margins, and competitor pricing to determine a price point that attracts consumers while maintaining profitability.
• Inventory Management: Accurately forecast demand for hero products and adjust inventory levels accordingly to avoid overstocking or stockouts.
• Feedback Loop: Collect and analyze feedback after promotional activities to evaluate the performance of hero products and adjust future promotion strategies accordingly.

Quote: "The company performed better during major promotional periods, with hero products contributing 80% of sales." - Eva, Director of Cross-border E-commerce at Sanwei Creative.

Amazon's internal data analysis also shows that while high-quality promotional products accounted for only 11.1% of total promotions, they contributed a high of 87.8% to sales. This highlights the significant sales driving power of quality products in promotions, effectively boosting overall sales performance. Therefore, when planning promotional activities, selecting high-quality products as promotional focus can not only attract more consumer attention but also significantly improve sales returns.

02 Compliant and Cost-Effective Pricing Strategies Influencing Consumer Purchasing Intent

Price is one of the decisive factors affecting the effectiveness of promotional activities. It directly influences consumer interest, willingness to pay attention, and even purchasing intent. In today's digital age, consumers can easily compare prices across different channels and identify genuine deals. A transparent and fair promotional pricing strategy enhances consumer trust in the brand, thereby increasing participation in promotional activities. Conversely, if consumers perceive pricing as fraudulent or dishonest, it can lead to a loss of trust, damage brand image, and negatively impact long-term sales. Therefore, when setting promotional prices, sellers must ensure that price adjustments are based on genuine offers and value provision, rather than false advertising or misleading marketing.

Consumer Behavior with AI Tools During Promotions:

Consumers increasingly rely on AI tools to find the best deals when preparing for major promotional shopping. Data indicates that consumers use AI tools for various purposes:

• Finding the best deals for specific products
• Searching for product-related information
• Comparing different products
• Comparing prices across different stores or channels
• Checking inventory
• Generating shopping lists
• Searching for product reviews (including product quality information)
• Generating gift recommendations
• Finding suitable clothing sizes
• Inquiring about return, exchange, and warranty policies
• Querying after-sales product setup and other information

Discount Depth of Promotions: A Catalyst for More Effective Conversion

Discount depth is a key factor in stimulating consumer purchasing behavior. In fierce competition, an attractive discount can quickly capture consumer attention and prompt a purchase decision.

In the United States, the year-end promotional season sees the highest discount levels. Data from the U.S. Census Bureau shows that from 2010 to 2022, online sales peaks consistently occurred in the fourth quarter, with this proportion continuously increasing. This indicates a growing consumer expectation and reliance on high-discount promotions.

US Online Sales Quarterly Share (%)

Chart Description: A bar chart showing the quarterly share of US online sales from 2010 to 2023, with Q4 2022 representing 16.3% of the total annual online sales. The chart illustrates a consistent upward trend in Q4 sales share over the years.

Consumers have increasingly high expectations for price transparency. They rely on smart tools and online resources to compare prices from different sources and find genuine offers. To some extent, this means that reliable promotional pricing can increase conversion rates in the short term and help build strong brand loyalty and competitiveness in the long run.

Seller Pricing Strategies: Major Holidays vs. Daily Promotions

Seller surveys reveal that sellers are increasingly adjusting their prices based on competitor pricing, whether for major holiday promotions or daily discounts. This reflects sellers' rapid response to market dynamics and their deeper understanding of consumer demand, as they attempt to enhance customer purchasing intent through dynamic price optimization while maintaining reasonable profit margins.

Furthermore, sellers are increasingly recognizing the importance of cross-border e-commerce channels in the global business landscape. Research shows that an increasing number of sellers are setting their lowest online prices on cross-border e-commerce websites, aiming to attract more consumers and enhance brand visibility and competitiveness by offering the best deals on these platforms.

Seller Perceptions on Pricing Strategies:

• Major Holidays/Promotional Seasons: 51% of sellers prioritize offering the lowest possible promotional price, a decrease of 17% from the previous year. 27% adjust prices based on competitors, an increase of 7%. 23% offer direct promotional prices that meet channel requirements, a slight increase of 3%. 1% use a strategy of raising prices before a major sale and then lowering them, an increase of 6%.
• Daily Promotions: 57% of sellers prioritize offering the lowest possible promotional price, a decrease of 15% from the previous year. 28% adjust prices based on competitors, an increase of 7%. 23% offer direct promotional prices that meet channel requirements, an increase of 8%.

Moreover, sellers generally agree that the most effective promotional approach is to 'offer the lowest possible promotional price.' This sentiment is shared by 51% for major holidays and 62% for daily promotions.

Seller Perception of Most Effective Promotion Methods:

• Major Holidays/Promotional Seasons: 51% believe offering the lowest possible price is most effective, followed by adjusting based on competitor prices (25%) and offering direct promotional prices (23%).
• Daily Promotions: 62% believe offering the lowest possible price is most effective, followed by adjusting based on competitor prices (24%) and offering direct promotional prices (13%).

However, greater discount depth does not necessarily mean higher conversion rates. Amazon's internal data shows that conversion rates peak at a discount depth of 30%-40%, reaching 7.4%.

Price Compliance: The Guarantee for Promotional Conversion

Price compliance is crucial not only for short-term operational costs but also for long-term business development and international competitiveness, making it an inevitable choice for cross-border e-commerce sellers. Regulations in overseas markets, such as the EU's Unfair Commercial Practices Directive and the US FTC's relevant laws, explicitly prohibit false discounts and misleading pricing. Therefore, improper promotional pricing can violate relevant laws and regulations, leading to the suspension of promotional activities by regulatory bodies or even legal penalties.

According to seller survey data, over 60% of sellers believe that the audit and management of promotional pricing by major cross-border channels are becoming increasingly strict during large promotional events. This indicates that sellers are aware of the increasing scrutiny on pricing and need to comply more rigorously with promotional activities in the future.

Seller Perception of Promotional Price Audit Management Strictness:

• 61% of sellers believe that cross-border e-commerce channels are becoming significantly stricter in managing promotional price audits during major holidays/promotional seasons.
• 39% believe it is slightly stricter.
• 1% perceive it as normal/unchanged.
• 0% believe it has become more lenient.

To enable sellers to participate in promotional activities with more competitive price discounts, Amazon has established standardized and detailed price discount requirements for participating products, such as requiring products participating in Amazon promotions to have a VRP (Valid Reference Price). This not only standardizes seller practices but also protects seller interests. By setting a VRP, sellers can more clearly demonstrate the value of promotional offers to consumers, increasing transparency and enhancing consumer purchasing intent and satisfaction.

However, during major annual promotional events, some sellers still fail to go live with promotions due to non-compliant discount prices. This includes:

• 20% of promotions had discounted prices higher than the historical lowest price.
• 12% failed to meet the basic promotional price threshold.
• 6% had unverifiable reference prices (VRP).

By strictly implementing these measures, Amazon effectively maintains the credibility of promotional pricing, ensures consumers receive genuine discounts, and provides a fairer competitive environment for participating sellers, thereby enhancing overall industry transparency and fairness.

03 Flexible Promotion Rhythm and Combination as a Key Factor in Improving Promotional Effectiveness

It is widely known that promotional activities are not only an important way to enhance brand influence and capture market share but also an indispensable part of corporate strategy. However, with increasing competition, sellers face the challenge of achieving maximum returns with limited budgets. In this context, developing flexible promotion combinations and rhythms has become a crucial task.

Grasp the Trend, Focus on Niche: Strategically Plan Promotional Activities

The success of promotional activities largely depends on how strategically sellers plan them. This involves not only capturing major promotional nodes but also focusing on smaller, targeted promotional activities.

Major overseas promotional holidays, such as Amazon Prime Day, Amazon Prime Member Sale, Black Friday, and Cyber Monday, have become highly anticipated shopping festivals globally, offering valuable opportunities for sellers to boost sales and enhance brand visibility.

Chart: Which drives more traffic and higher conversion?

• Category-themed promotions: 32%
• All-category major promotional activities: 68%

Quote: "From the consumer's perspective, major promotions can offer better prices and greater discount power. For brands, major promotions can bring higher sales and more traffic. Following Amazon's major promotion rhythm is a win-win result." - Eva, Director of Cross-border E-commerce at Sanwei Creative.

Global Major Promotion Seller Participation Ratio & Effectiveness Analysis

From a global perspective, 'Black Friday' and 'Cyber Monday' are widely regarded by sellers as the most effective global promotional activities. Simultaneously, sellers in different regions exhibit their own preferences when participating in global promotional events. In North America, the Fall Prime Member Sale and Prime Day are considered the most popular events. In Europe, sellers tend to participate in the Fall Prime Member Sale, Prime Day, and Spring promotions. Japanese sellers primarily focus on Prime Day. In emerging markets, Prime Day, Fall Prime Member Sale, Hot Selling Festivals, and Clearance Sales attract higher participation. This diversity reflects the unique demands and consumer behaviors of different regional markets, requiring sellers to optimize their promotional strategies based on regional characteristics for optimal results.

Seller Participation in Global Major Promotions & Trends:

• Seller surveys indicate that globally, sellers participated in 100% of global major promotional activities last year and this year, with an increase in the number of promotions participated in across all websites. The growth is particularly significant in European and emerging market websites, with a growth index of up to 111.

Global Major Promotion Seller Participation Count Trend - By Website:

Note: Emerging markets include Brazil, Australia, Mexico, India, Middle East.

Beyond the traffic boost from major promotional holidays, Amazon also possesses a deep understanding of consumers in its various regional websites. Based on this understanding, it plans nearly a hundred local promotional activities throughout the year, tailored to the unique characteristics of each website and category. This provides sellers unfamiliar with local consumer habits a quick way to connect 'face-to-face' with consumers.

Overview of Amazon Global Promotional Holidays and Local Promotional Activities:

Table Description: A comprehensive table listing global Amazon promotional events (e.g., Prime Day, Prime Member Sale, Black Friday/Cyber Monday) and regional/country-specific events (e.g., Valentine's Day, Mother's Day, Children's Day, Women's Day, Spring Promotion, Halloween, Christmas, etc.) across North America, Europe, Japan, Mexico, Brazil, Middle East, India, and Australia.

High ROI Local Promotional Activities

Compared to global major promotional activities, beyond sales volume, more sellers believe local promotions offer a higher return on investment (ROI). In the face of global opportunities, cross-border e-commerce requires not only broad reach but also deep localization in operations. The core of this operational model lies in understanding and meeting the unique needs of consumers in different cultural contexts, attracting and retaining customers through carefully planned local promotional activities. Seller survey data shows that each seller participates in at least one local promotional activity on an operating website. Furthermore, compared to last year, where 83% of sellers engaged in local promotions, this figure has increased to 87% this year.

Chart: Seller Participation Ratio/Count Trend - Local Promotions - Global

• Seller participation in local promotions increased from 83% in 2023 to 87% in 2024.
• The average number of local promotional activities participated in by sellers increased from 1.36 in 2023 to 1.44 in 2024.

Regional Participation in Local Promotions:

The number of sellers participating in local promotional activities on different websites is steadily increasing. In Japan, seller growth in local promotions reached 6%, followed closely by Europe and North America with growth rates of 4% and 3%, respectively. This trend indicates that more sellers recognize the importance of participating in local promotions and are actively adjusting their strategies to leverage unique local opportunities. By participating in local activities, sellers can better cater to local consumer demands and enhance their competitiveness in specific regions.

Chart: Seller Participation Ratio Trend in Local Promotions - By Website:

Note: Emerging markets include Brazil, Australia, Mexico, India, Middle East.

Reasons for sellers participating in local promotions, in addition to the aforementioned 'high ROI,' include 'higher sales' and 'better inventory clearance effects.' Survey data shows that 82% of sellers participate in local promotion festivals because of higher sales, and 54% participate because of better inventory clearance effects.

Chart: Reasons for Sellers Participating in More Local Promotions/Festivals:

• Higher ROI: 54%
• Higher profit/profit margin: 43%
• Higher sales: 82%
• Better inventory clearance effects: 54%

Of course, the effectiveness of local promotional activities can vary based on consumer characteristics and cultural differences across different websites. According to seller feedback, Halloween is considered the most effective local promotion in North America and Japan. Christmas and End-of-Summer Sales show strong promotional performance in Europe. For emerging markets, Clearance Sales are the most effective local promotion.

Local Promotion Activity Seller Participation Ratio & Effectiveness Analysis:

• North America: Halloween, Christmas, Back to School/Season.
• Europe: Christmas, Spring Promotion, End-of-Summer Sale.
• Japan: Halloween, Christmas, Hot Selling Festival.
• Emerging Markets: Halloween & Day of the Dead, Clearance Sale, Christmas.

Comparison of Promotion Types:

Which has a lower return rate?

• Category-themed promotions: 45%
• All-category major promotions: 55%

Which has a higher repurchase rate?

• Category-themed promotions: 62%
• All-category major promotions: 38%

Which has a lower promotion cost?

• Category-themed promotions: 61%
• All-category major promotions: 39%

Quote: "The performance of individual websites is related to consumer habits. For example, based on past experience, the focus of annual planning is in the second half of the year. However, our category's peak season in Japan is the first half of the year, with sales in March-April being much higher than in October and July promotions. The office season in Japan in the first half of the year is quite good for promotions." - Du Jing, Head of Amazon Department at Wuhan Jingchen Smart Logo Technology Co., Ltd.

Full-Scale Promotion, Precision Optimization: Mastering Traffic with Multi-dimensional Promotion Combinations

Based on the analysis above, different promotional activities exhibit distinct characteristics:

• ONE: Global Promotions: Sellers can achieve wide reach and high conversion rates, leading to high sales and inventory clearance.
• TWO: Local Promotions: Focus on meeting specific local consumer needs, achieving sales growth with higher ROI, and strengthening seller competitiveness in specific regions.
• THREE: Category-Specific Promotions: Target specific product categories to precisely attract audiences, leading to higher repurchase rates, lower return rates, and lower promotion costs.

04 Amazon Seller Promotion Experience Sharing

Having explored the importance of refined promotional activities, the impact of pricing strategies on consumer purchasing intent, and the necessity of flexible promotion rhythms and combinations, we now turn to practical application, exploring the specific experiences and strategies of Amazon sellers. This chapter will summarize the global cross-border e-commerce promotion trends mentioned earlier and, by combining the actual cases of two sellers, delve into their successful approaches in promotional activities.

Case Study 1: Vital Salveo

• Seller Type: Manufacturer transitioning to cross-border e-commerce.
• Speaker: Lin Jien-kai, General Manager of Vital Salveo.
• Main Product Category: Medical braces.
• Key Achievement: Achieved NT$300,000 in sales for a knee brace within four hours during a 'Lighting Deal' promotion.
• Brand Overview: Vital Salveo is a brand focused on the research, development, and sales of medical braces, utilizing germanium and far-infrared technology to help consumers recover from injuries and enhance athletic performance. The brand's products feature a unique three-dimensional weaving technique that provides comfort and prevents slippage even during prolonged wear. Vital Salveo initially focused on the Taiwanese market but faced pricing pressure from trading companies demanding significant price reductions, even threatening to shift orders. Facing this challenge, they decided to explore new operational methods and the potential of cross-border e-commerce. After years of promotion, they have successfully entered markets in the United States, Canada, Europe, Japan, and Australia.
• Key to Success: Leveraging 'Lighting Deal' to Drive Sales Growth

During Vital Salveo's expansion into the Amazon US marketplace, they identified a key success factor: participating in Amazon's 'Lighting Deal' promotions. The timing of their participation was very advantageous. As it was an early and free opportunity, their products received significant concentrated exposure in a short period.

The stringent review mechanism of 'Lighting Deal' ensures that only approved products can participate, further enhancing their exposure. Lin Jien-kai, General Manager of Vital Salveo, recalled an event where a knee brace product generated NT$300,000 in sales within four hours, providing a significant boost to their performance. This successful experience made them deeply realize that seizing the right opportunities and effectively utilizing Amazon's promotional tools are key to achieving success in cross-border e-commerce.

Case Study 2: Lady N

• Seller Type: Taiwanese brand owner expanding to cross-border e-commerce.
• Speaker: Sun Zongde, Founder of Shepherd Group.
• Main Product Category: Safe cat litter certified by the International Safe Fragrance Association.
• Key Achievements: Achieved 10x sales growth during 2024 Prime Day. Sold 70 boxes of cat litter in 24 hours during the September Labor Day (Labor Day) official Amazon promotion.
• Brand Overview: The name 'Lady N' originates from the concept of 'transcending the individual and uniting love,' embodying their hope that every cat can have a warm and comfortable home. To achieve this goal, the brand focuses on developing high-quality natural tofu cat litter. They have innovated by being the first to use safe fragrances certified by the International Safe Fragrance Association, making the cat litter not only natural and healthy but also emitting a pleasant aroma, breaking the stereotype of scented cat litter. The team observed that the pet market in the United States lags behind Taiwan by 5 to 10 years, with many high-quality products yet to be recognized by American pet owners. To benefit more cats, they decided to enter the US market.
• Leveraging Official Holiday Promotions to Build Brand Reputation:

Lady N's initial entry into the US market was not smooth sailing. In the first three months after opening, they experienced very little traffic and single-digit orders, facing significant inventory pressure. The team realized the need to deeply understand American consumer shopping habits. They discovered that US shopping festivals are concentrated in the latter half of the year. Therefore, they decided to participate in the September Labor Day official Amazon promotion, offering a 'buy two, get a discount' deal. Simultaneously, a satisfied customer shared her shopping experience on social media. This post quickly resonated, leading to the sale of 70 boxes of cat litter in just 24 hours! This success not only boosted sales but also generated valuable brand reputation.

Having learned the importance of seasonal promotions, the team continued to participate in official Amazon events and enhance their social media operations. They utilized Amazon's tools to analyze market trends and found that the peak sales period for cat litter was during Prime Day, not Black Friday. Consequently, they adjusted their strategy and achieved a 10x sales increase during this year's Prime Day.

Using Opportunity Discovery Tools to Precisely Grasp Category Sales Trends:

Lady N faced not only product promotion challenges in the North American market but also unfamiliarity with local consumer habits and festival cultures. They discovered that shopping festivals in North America differ significantly from those in Asia, leading to initial blind spots in planning promotional activities. Through the Opportunity Discovery Tool, they gained a deeper understanding of sales trends across different categories. Notably, after using this tool, the team found that the peak consumption period for consumables like cat litter was not concentrated on Black Friday as they initially expected, but rather on promotions like Prime Day. Therefore, they conducted thorough preparations for Prime Day, including pre-event buzz on social media and enhanced SMS and email marketing campaigns. Sales on Prime Day achieved a 10x increase compared to normal days, far exceeding the team's expectations.

Conclusion

As global e-commerce continues to develop, cross-border e-commerce has become an important bridge connecting different regions and consumers. The 'Cross-border E-commerce Promotion Trend White Paper' aims to provide sellers with an in-depth guide to understanding promotion trends, pricing strategies, and promotional flexibility for sales and brand growth in the competitive global landscape. Through analysis of promotion trends, seller surveys, and sharing of successful case studies, this white paper elaborates on the importance of refined promotional activities, the impact of pricing strategies, and the flexibility of promotion rhythms and combinations. It is hoped that this white paper will serve as a valuable reference for cross-border e-commerce sellers when formulating and executing their promotional activities.

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