The number of Amazon sellers has soared to 9.8 million, but only 20% can make money within 3 months?

2014 was the first year of cross-border e-commerce, and seven years later, the first year of Amazon suddenly arrived. This year, from traditional foreign trade to cross-industry companies, from coastal to inland cities, people on the streets are asking or discussing "how to do Amazon", but how many people can make money on Amazon, do you know?

There are 9.8 million sellers on Amazon , but only 20% of them can make a profit within 3 months

Amazon is becoming increasingly popular. According to the latest data from Marketplace Pulse, Amazon has 9.8 million sellers worldwide, with 304,000 new sellers added this year alone, which means that on average, more than 3,700 new sellers enter the market every day. Among all the sellers, 45.9% are from China, and 44% of the top sellers are also in China.

Nowadays, the trend of Amazon is fierce. A seller sighed: "I heard that Amazon is very profitable, so many new sellers came here. However, they don't know how to register an account in the first step, and they have to pay 1,500 yuan for tuition. The subsequent account operation and trademark registration all require money. Sellers who come in with small capital are only more 'tough'. If they don't handle risk control and details well, they will be taught a lesson in minutes. But for traditional foreign trade companies with experienced operations and supply chain resources, doing business on Amazon is just two words - 'really good'."

How do new sellers earn? According to a survey report by an industry organization, only 20% of the new sellers surveyed made a profit within the first three months of sales; 40% of sellers need three months to a year to achieve profitability. According to annual sales statistics, most sellers have a profit margin between 10% and 50%; looking at monthly sales alone, 6% of sellers have a monthly income of more than $250,000, while 17% of sellers have an income of less than $500.

So how to improve profit margins? Among all the precautions, many big sellers emphasize the same point - give up unsalable goods.

Big seller advice: decisively abandon slow-selling products

Product development and operation are not easy, which makes operators cherish every product in their hands, and it is difficult to give up even if the product performs poorly. A seller said: "Many operators are reluctant to give up those products that have shown a 'slow-selling' state, and are unwilling to clear them out, and want to operate them to increase the volume. In fact, this is not worth it, because these listings will consume a lot of energy and time." The seller further explained that to determine whether a product is slow-selling, factors such as order rate and inventory age can be seen.

This resonated with many sellers - unsaleable goods must be cleared out quickly, otherwise it will be difficult to clear them out once they become really unsaleable.

One of the sellers agreed very much: "My requirement is that there must be no unsaleable goods in the store, and all SKUs must be moved. If unsaleable goods are found, we will find a way to deal with them as soon as possible, either by selling them out immediately or destroying them. Unsaleable goods will reduce the overall conversion rate and sales rate of the store." After all, once a product is unsaleable, not only will the IPI score be affected, but the capital utilization rate and profit margin will also inevitably be lowered.

After listening to the advice of the big seller, many sellers said, "I will arrange to deal with the unsold goods today." In fact, the big sellers save money by not only clearing the unsold goods, but also using low-fee payment tools. Wanlihui has attracted many sellers with its ultra-low fee capped at 0.3%. Now Wanlihui customers can save more!

The editor learned that from March 11 to April 30, sellers who sign up for Wanlihui's "Cross-border Leader Program" can receive a spot in Chaos University's online boutique course + 7-day training camp. During the event, new users who complete their first Amazon payment with Wanlihui can receive a 200-yuan Tmall shopping card ; if they bind 2 or more Amazon stores and the cumulative payment exceeds $200, they can enjoy a 50% discount on withdrawal fees (capped at 0.15%) in May and June; old users who bind new stores can also enjoy the same discount.

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