Big sellers will earn 1.5 billion this year! Amazon small sellers no longer want to have huge orders

Just when many sellers were worried about a sharp drop in orders, Amazon's sales increased again in the first quarter. This increase can be traced in leading sellers such as Anker Innovations and Huakai Yibai.

As cross-border e-commerce has developed, more orders and sales data are increasingly concentrated in the top sellers, leaving fewer opportunities for small and medium-sized sellers. More sellers are no longer order-oriented and blindly pursue explosive orders, but focus on real conversion and profit. Only by understanding the core of Amazon can you stay at the table and become the king.

Institutional estimates: Anker's net profit in 2023 will be as high as 1.531 billion

Consumption in Europe and the United States has rebounded, and a new wave of growth is coming. YipitData's analysis of millions of American consumers shows that Amazon's first-quarter North American net sales will exceed market expectations.

Analysts estimate that Amazon's North American net sales will increase 8.5% year-on-year to $75.2 billion in the first quarter . North American net sales account for more than half of Amazon's total revenue, and the revenue from this market accounts for a significant proportion of the company's overall sales .

Amazon's overall sales growth is reflected among domestic sellers.

Recently, Anker Innovations has added one more institution to predict that CITIC Securities expects its net profit in 2023 to be 1.328 billion yuan. In terms of institutional attention, a total of 20 institutions have released research reports on Anker Innovations in the past six months, predicting that the highest net profit in 2023 will be 1.531 billion yuan , the lowest will be 1.189 billion yuan, and the average will be 1.362 billion yuan, a year-on-year increase of 19.20%.

In 2022, Anker Innovations' revenue was 14.251 billion yuan, an increase of 13.33% compared with the same period last year; the net profit attributable to shareholders of the listed company was 1.143 billion yuan, an increase of 16.43% year-on-year.

Anker Innovations' success lies in its brand and products. The branding strategy runs through all stages of the company's development, while continuing to deepen its main categories. In 2022, the company's R&D investment was 1.08 billion yuan, a year-on-year increase of 38.80%, accounting for 7.58% of its revenue, ranking among the top in the industry. Continuous investment in R&D is also a guarantee for its long-term stable profitability.

Anker Innovations will still be very profitable in 2023. Another big seller that can make money is Huakai Yibai.

Huakai Yibai's newly added Guotai Junan has made a forecast for its 2023 annual performance, with an expected net profit of 315 million yuan. In the past six months, a total of 9 institutions have released research reports on Huakai Yibai, predicting that the highest net profit in 2023 will be 409 million yuan, the lowest will be 275 million yuan, and the average will be 336 million yuan, a year-on-year increase of 55.26%.

Huakai Yibai's revenue in 2022 was 4.417 billion yuan, a year-on-year increase of 112.88%; net profit was 216 million yuan. Among them, its subsidiary Yibai Network achieved revenue of 4.384 billion yuan and net profit of 288 million yuan. In the first quarter of this year, the company achieved a net profit of 76.11 million yuan, a year-on-year increase of 119.2%.

Seller "Amazon Wuye" said that the secret of Huakai Yibai's success is to launch 300,000 new SKUs every year. If there are 300 working days a year, 1,000 SKUs need to be developed and launched every day . The key to launching 300,000 SKUs is to have a suitable and comprehensive ERP system and a comprehensive docking process. Huakai Yibai has developed its own intelligent IT system, using robots to replace employees in product selection, editing, listing, advertising, shipping, outbound delivery, and inventory management, all of which are automated and batch processed.

In the industry, Anker Innovations is a benchmark seller represented by high-quality products, while Huakai Yibai is considered to be a mass-market seller. Regardless of the model, the sellers are all experiencing positive growth.

However, many small and medium-sized sellers are not having such a good time.

Don’t be guided by the number of orders, but focus on conversion and profit

From the first quarter of this year to now, the most talked about topic among small and medium-sized sellers on Amazon is the sharp decline in orders and profits, which is in sharp contrast to the development momentum of large sellers.

One seller said that Amazon's sales have been sluggish this year, which is very disappointing. His peers have stopped spending a lot of money on advertising because they see no hope. Many of his peers joked: "Orders have been declining, and when I opened the backend, I thought my account was down."

An old seller pointed out the current situation of himself and many of his peers: orders continue to decline, old products have no profit and they dare not spend money on advertising, without spending money on advertising there will be no traffic and orders; new products are not selling well, and there is no desire to develop them. There is no end to clearing inventory and collecting payments. I once dreamed of a hit product overnight, but I was trapped by the inventory capacity. I can't imagine how long it will last in the long run!

As one of my peers lamented: " I have recently come into contact with many sellers who have been at the top of their categories for a long time. Through communication, I found that these sellers are becoming more and more professional, with close supply chain coordination and competitive costs. There is not much time left for ordinary sellers ! "

In the future, the days when big sellers eat meat and small and medium-sized sellers drink soup may not last long. More small and medium-sized sellers who do not pay attention to products and operations will be directly kicked out of the table.

According to Jason Cross-border, an industry insider , doing business on Amazon is actually the simplest way. If you understand the core architecture of Amazon, your operations will be much easier. The biggest cost for many sellers is to complicate simple things.

The core mechanism of Amazon's A9 algorithm is to accurately match products for consumers, giving buyers the best shopping experience; at the same time, the platform maximizes profits and pockets the money of both buyers and sellers , so that shareholders will love to read its financial reports .

As an Amazon seller , you should be conversion-oriented, not order-oriented . There are three specific reasons for this:

First, there are now abundant products on the Amazon platform, and most categories are mature. Ordinary sellers will certainly not be able to compete with top sellers .

Second, sacrificing profits to pursue order volume and ranking is meaningless . The core of Amazon sellers is to make money.

Third, products on Amazon have corresponding consumer groups in each price range and they will not compete with each other.

The weight on Amazon = advertising platform income + organic platform income . No matter how good the seller's advertising is , if the conversion rate is not high , the weight will be low. The correct way to operate on the site is to start with your own listing, work on every detail, and improve the conversion rate.

If the conversion rate is good , it means that the platform will give priority to high-quality traffic when running ads ; if the conversion rate is poor , Amazon's highly paid programmers will not eat for free, which will make your ads tasteless and a pity to abandon. The platform takes both ends, which is in line with the maximum benefit.

Let me give you an example that sellers can understand: Amazon will give you orders, but it won’t let you make money. For example, if the ACOS is above 100%, sellers will lose money if they run ads. If they don’t run ads, they will have to pay storage fees if their products are unsalable . This is because the platform does not provide high-quality traffic.

Taking the final step, if the seller no longer does business with Amazon , the platform can still make money even if the goods are discarded or destroyed .

As a data company, Amazon has a data framework for the age range , income , gender , spending power , place of residence, shopping preferences , etc. of users who enter its website IP . As an Amazon seller, you must not ignore the data capabilities of a top company. Do not engage in illegal small actions such as fake orders and fake reviews, because the platform can easily catch you . The long-term solution is to operate in accordance with the rules .

The era of making money by selling on Amazon has long passed, and the sellers who will remain in the future must be long-term sellers. Which Amazon seller has not been on the road of growth for many years?

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