The product is sold out and joins the ranks of high-quality products, striving to generate 6 billion in revenue by 2022

Amazon's revenue was 3.47 billion, up 30% from 2020.

Looking back at Yibai Network’s performance last year, the annual revenue was about 4.7 billion yuan, the net profit was 216 million yuan, and the gross profit margin was close to 40%. The net profit was higher than the agreed 204 million yuan, and Yibai Network successfully completed the third year of the performance bet.

Among them, sales revenue from cross-border export e-commerce business through Amazon reached 3.47 billion yuan, an increase of 32.8% over 2020. Except for Amazon, sales revenue achieved through other third-party platforms accounted for no more than 10% of operating income in 2021.

Speaking of Yibai Network, it is a typical large-scale seller. The categories it sells mainly include home gardening, industrial and commercial supplies, automobile and motorcycle accessories, health and beauty, etc.; of course, there are also 3C electronic products, but their proportion is not high.

Since 2020, Yibai Network's product development direction has been mainly based on the four factors of slow iteration, large market, low competition, and high gross profit . Due to the fierce competition in clothing and 3C products, Yibai Network chose to focus on the "blue ocean" products mentioned above in order to form differentiated competition with other cross-border export e-commerce companies and gradually establish a competitive advantage.

While the products are diverse, there are also many channels. Yibai Network's sales channels include third-party platforms such as Amazon, eBay, AliExpress, Cdiscount, and Wish. Among them, Amazon is the main battlefield. In 2021, the number of online stores that Yibai Network achieved sales on Amazon was 678, with 202 new stores and 22 closed during the period.

In order to manage a large number of stores and SKUs and ensure the speed of new product development, Yibai Network has forced itself to become a "technical person". In addition to basic business system modules such as product system, procurement system, and logistics system, Yibai Network has also developed intelligent application systems.

For example, in terms of price adjustment, most cross-border e-commerce sellers will manually adjust the price of listings through the store background , while Yibai Network has developed a fully automatic data sorting and price adjustment management system. The system will calculate the optimal selling price for a large number of product sales pages across platforms and stores based on dimensions such as inventory, inventory age, and daily average weighted sales, supported by big data algorithms, and realize batch and rapid price adjustment.

In addition, Yibai Network also has its own intelligent publishing system. The system can generate hundreds of differentiated title copywriting and picture combinations for each SKU in batches, automatically and quickly translate them into multiple languages, automatically match the platform subcategories after checking the infringement and corresponding platform prohibited databases, quickly publish to multiple sites across platforms, and automatically select the best keywords based on sales data, and batch optimize and adjust other listings of the same product.

In terms of smart advertising, Yibai Network also has an advertising delivery system that sets differentiated delivery strategies for advertising needs in different business scenarios and time periods, and tracks advertising data.

In terms of stocking, Yibai Network's intelligent stocking system can start calculating at early morning every day, and complete the full data calculation of tens of millions of product information on different platforms, millions of FBA links and inventory, and more than 200,000 to 400,000 SKUs within 5-6 hours. It also generates 20,000 to 100,000 SKU procurement and stocking instructions and 50,000 to 100,000 FBA warehouse and overseas warehouse shipping instructions before 10 o'clock every day, and outputs them to the procurement, logistics, and sales departments for execution.

In fact, there are quite a few sellers like Yibai Network that have a complete intelligent system, such as Hour Loop, which was successfully listed on the Nasdaq in January this year. According to Marketplace Pulse data, Hour Loop is one of the top 100 third-party sellers on Amazon in the United States. Hour Loop said that among the 9.7 million sellers on Amazon, it has two main competitive advantages: a strong operation and sales team; and a proprietary software system.

In addition, Boulevard, a wholesale seller on Amazon UK that recently received nearly 20 million yuan in financing, said that its independently developed supply chain system played a big role in gaining the favor of investors.

Distribution + quality products + service provider, Yibai Network is aiming for 6 billion

Regarding the goal for 2022, Huakai Creative stated in its annual report that it hopes the revenue of its cross-border export e-commerce business segment can reach 5 to 6 billion yuan.

As for the next business plan, the company said it will continue to implement a refined operation strategy, continue to increase investment in information systems, rely on digital means to solve business needs, continuously optimize business operation efficiency and supply chain response speed, and use digitalization to reduce promotion costs, channel costs, supply chain costs, labor costs and management costs.

In terms of market development, the company will increase the promotion of emerging sites on the platform, such as Brazil, the Netherlands, Sweden, etc. At the same time, it will continue to deepen the market of developed countries in Europe and the United States; in addition, it will actively develop sales in Southeast Asia and South America. The company believes that in regions like Southeast Asia, with the continuous improvement of cross-border e-commerce supporting service facilities and systems such as cross-border logistics, third-party payment, and foreign currency settlement, its market potential is becoming increasingly prominent.

While reducing costs and increasing efficiency, the company also decided to create a quality brand and increase investment in boutique business. In 2021, the company was optimistic about the future development space and potential of boutique business, formed a boutique team, and gave priority to product areas with relatively high customer unit prices and low competition, including kitchen appliances, smart home products, pet products , etc. In 2022, the company will further improve the construction of the product quality standard system, standardize and supervise all aspects of the product, such as product design, research and development, and sales, and will further expand the boutique sales channels, gradually extending from the United States to Europe and Japan, and launching differentiated products.

In addition to being a seller itself, the company also provides data services related to online sales to other sellers. With more than ten years of industry experience, in 2021, Yibai Network created a one-stop cross-border e-commerce comprehensive service platform , aiming to provide sellers with a full range of cross-border business solutions, including long-chain supply chain services, global logistics services, full-process data-based operation management, one-stop cross-border service training, etc.

From the above actions, it is not difficult to see that Yibai Network is not only strengthening its distribution model (multi-product + pan-platform), but is also expanding towards the boutique model and cross-border service provider. Since the Amazon account ban last year, many sellers have been looking for various ways to diversify their risks. At the same time, if the business is done properly, sellers will also increase their profit points to achieve a win-win situation.

Data from the first quarter of 2022 showed that Yibai Network's operating income was about 930 million yuan and its net profit was about 45 to 47 million yuan. Judging from the performance in the first quarter, it may be a bit difficult for Yibai Network to achieve the 6 billion target and the net profit to reach the 251 million yuan promised in the fourth year. However, it is too early to say. In the next peak sales season, we can wait and see whether Yibai Network's "three horses" can play a greater role.

Distribution

Boutique