Don’t divert traffic from TikTok! Shenzhen billion-level brands sell well and reveal new product strategies

This year, many sellers are complaining that it is becoming increasingly difficult to promote new products. A big reason for this is that Amazon has tightened its policies, and the original method of fake orders to promote new products suddenly does not work, so sellers have turned their attention to advertising. But they soon found that there are too many sellers and too little porridge. Not only did the advertising costs increase sharply, but the conversion rate was not ideal.

Under the new policy, how to use advertising to promote new products has become a problem that troubles many sellers. To this end, Ennet interviewed Da Bing, the head of Shenzhen billion-level brand seller with 8 years of experience in Amazon overseas sales, and told us about the new product advertising promotion strategy under the new policy.

Fake orders are being suppressed, and advertising has become a lifeline for sellers to promote new products

A person who has been working in Amazon operations for two years asked a question on Zhihu, "Before, new products were promoted by false orders with auxiliary advertising. Now Amazon is strictly cracking down on false orders. The new company I joined told me that I cannot fake orders. I was confused. Does anyone know how to promote new products without fake orders?"

As Amazon cracks down on fake orders, I believe many people will have the above questions. And the answer to this question undoubtedly points to two words: "advertising".

“Previously, when sellers were caught with fake orders, their accounts were blocked by the platforms, but the brands were fine, and the potential energy accumulated from the listings and fake orders was still there, so the impact was not that big. But this year, Amazon cracked down on fake orders, and advertising, which was previously only an auxiliary means, has been pushed to an important position.” said Da Bing.

However, when everyone focused on advertising as a new product promotion channel, they found that its cost increased dramatically. When analyzing the reasons, Da Bing said there were two main reasons:

1. When people find that the cost and loss of fake orders are much higher than the advertising investment, they will desperately buy advertisements when launching new products. This is one of the reasons why the prices of advertising are rising.

Second, double inventory swept the industry. First, last year's market made many people have high expectations for this year. Many people even planned to double their sales this year. However, the performance was not as good as expected. Therefore, the goods ordered last year were unsalable and formed inventory. To clear the inventory, advertising was needed. Secondly, the inventory of the sellers whose accounts were blocked also had to be cleared.

“When everyone is clearing out their inventory, you find that it is not an easy thing to do. So in order to clear out the inventory faster, you need to buy advertisements, even if you are clearing out the inventory at a low price.” Da Bing told Yien.com that the skyrocketing advertising fees this year and the fact that everyone pays more attention to advertising than in any previous year are all caused by these factors.

With advertising costs skyrocketing, product differentiation is the way to increase conversion rates

Affected by the above factors, advertising costs remain high, but the conversion rate is pitifully low, so much so that many people complain that it is extremely difficult to promote new products this year. Faced with such a situation, how should sellers deal with it?

Da Bing said frankly that product differentiation is the most fundamental solution to improve advertising conversion rate. "This is the 'Tao', and small tricks such as optimizing pictures and other advertising adjustments are the 'techniques'. There are more than a dozen factors (techniques) that affect product conversion rate, and you can't optimize every one of them to the extreme. Occasionally increasing the conversion rate by a point cannot fundamentally solve the problem."

He further explained that everyone is spending money on advertising. When consumers are faced with two products at the same time, because the others are old products with a high accumulation of data, the most direct is the accumulation of reviews, then the customer's trust will be different. In addition, since the prices are similar, they will of course choose the mature listing. But on the other hand, although the two products belong to the same type of products, if the new product you launch solves certain needs of consumers, the chances will be greatly increased, and the conversion rate will naturally increase.

This is even more important for new sellers. "The platform will not favor you in terms of traffic just because you are a new seller. If your product is the same as others or even worse, you will definitely lose in the competition." Da Bing said frankly that when promoting new products, new sellers must remember that if they want to win, they must make a fuss about the product, sell products that are in line with the interests of the platform and can bring buyers a better customer experience.

However, this is not absolute. If the seller cannot differentiate and provides homogeneous products, there is another way, that is to spend money to compete. " In the end, the biggest skill in advertising is often 'money', because the core of advertising is words. Now, with the various software, everyone has a high level of grasp of words and will not deviate. The quality of the listing itself is also very good. Which type of advertisement, which advertisement word position, and how many orders can be obtained from where can be basically estimated. At this time, the competition is 'money'."

Da Bing emphasized that the type of products a seller can provide to buyers determines the path he takes. If you provide ordinary, undifferentiated products, prepare money, and go all out, and want to spend less money and see quick results, then you must work hard on product quality and differentiation.

New product advertising should avoid diverting traffic from TikTok

When talking about new product advertising promotion suggestions for other sellers, Da Bing pointed out three points:

1. Don’t attract traffic from TikTok. First of all, off-site traffic is expensive. Secondly, the foundations of new products are not solid. Sellers attract traffic, but when customers click on the listing, there may be dozens of competing products below, which may be a wedding dress for others.

Da Bing said that doing Amazon is just to take advantage of its cheap traffic, and diverting traffic from TikTok is like throwing away the watermelon to pick up sesame seeds. Don't blindly believe in the "traffic diversification" promoted by some training institutions.

"Those who use TikTok to create a discount code are just attracting orders, not normal traffic." Dabing said that this promotional method is a serious low-price spiral and is Wu Sangui's core strategy.

Second, don’t make some basic mistakes. You need to work hard on listing skills, keyword research, product quality control, etc. Traffic is very expensive now. If you make mistakes in these areas, the money you invested will be like falling into the water without making a sound.

3. Work hard on product selection to reduce the pressure of advertising. Although Amazon has fierce competition, it is only in some categories. There are still many categories on the platform where competition is still small.

"When selecting products, look for categories that others don't pay attention to, or that receive relatively little attention, and then think of ways to differentiate the products." Da Bing believes that by using large sites with small categories or small sites with large categories, sellers can avoid fierce advertising competition.

He said that for small categories, the ranking of products can be improved by a relatively Buddhist approach, such as by increasing sales. "Because the competition in the entire category is low, at this time we can improve as long as we are willing to increase sales."

He further said: "The top 20 on Amazon can account for 60% of the traffic in the entire category. So when launching new products, for categories with relatively less competition, we fully seek product differentiation. Then, when we see that the competition in the entire category is not very strong, we increase investment and quickly occupy the top position."

On December 13, at the 2021 First China Central Cross-border E-commerce Seller Brand Overseas Summit hosted by Ennet, Da Bing will share some new product advertising promotion strategies under Amazon's heavy-handed rectification based on his many years of experience, with the theme of "New Product Advertising Promotion Strategies under the New Policy". You can click "Read Original" or scan the QR code below to register for this conference and listen to Da Bing's sharing on the spot.

Amazon's new product strategy