Annual sales of over $1 million, never been to the United States...How many characteristics of Chinese sellers do you have?

This week, an article by a foreigner named He Wei attracted attention. In his article “The Rise of Made-in-China Diplomacy”, he mentioned some characteristics of Chinese Amazon sellers: never been to the US but closely following US news, annual sales of over 1 million US dollars, listing descriptions in Amazonglish, being able to judge that the US government is giving money from a sudden increase in sales, selling the same product under different brands to increase market share… Many sellers said “I am talking about them”. Let’s see how many of these characteristics you have.

1. Never been to the United States, but closely follow American news

Mr. Li is a shoe seller on Amazon with high sales. He has never been to the United States, but he speaks good English and studies the U.S. market through various channels while keeping a close eye on U.S. news.

Chinese sellers have direct feelings about American news. The snowstorm in the United States after the Chinese New Year caused the closure of more than 70 FBA warehouses and delayed logistics delivery; the stay-at-home order during the epidemic period polarized product sales: the sales of suitcases, swimming caps, goggles, etc. plummeted, but LED lights, home manicures, yoga mats, backyard inflatable pools, bicycles, etc. were hot sellers; the "Black Lives Matter" movement led to protests in many places, and the demand for related slogan T-shirts and other products soared. At the same time, the riots caused some sellers' packages to be robbed.

Through local news and social hot spots, sellers have the opportunity to discover potential products and learn about factors that may interfere with logistics in a timely manner.

2. Annual sales exceeded 1 million US dollars, and sales doubled due to the epidemic

Data from Marketplace Pulse shows that nearly half of Amazon's top sellers with annual sales of more than $1 million in the U.S. are in China. An Amazon spokesperson recently said the data was inaccurate, but did not disclose the specific number of Chinese sellers.

Domestic sellers also disagree with the term "top sellers with annual sales of one million", because the sales are too low. One seller said that sellers with annual sales of $1 million are already considered small companies in China, and there are many sellers with monthly sales of over one million. Another seller agreed: "$1 million is too little. My company makes $60 million a year on Amazon, which is just a mid-level seller. Big sellers make hundreds of millions of dollars (in sales), and many of the big sellers in China are very impressive."

Many people believe that 2020 is a good year. Vesync, a major seller of small appliances on Amazon, saw a sharp increase in performance last year, with net profit increasing by 6-9 times. One seller said that sales had tripled before October last year. Another seller also said that the company did not do much work in March and April last year, but it started to explode in the second half of the year, and its profits were better than the year before. Seller Mr. Li also said that his shoe brand had the best holiday sales ever, and its total annual revenue increased by about 15% compared to 2019.

Currently, among the top 100 sellers on Amazon in the United States , 17 are from China and 81 are from the United States, but many domestic sellers sell on Amazon as American companies.

3. The listing description is Amazonglish, “clumsy but basically understandable”

The language used in some Amazon listing descriptions is known as Amazonglish — clunky but basically understandable, redundant but easy to search. Often, the language in these product descriptions is accurate enough to pass a computer grammar check, such as “Your feet can breathe easy in the latest iteration of fabric upper.”

Nowadays, more and more Chinese sellers are advertising on Instagram, all in a simple and chic style, with a shopping website page (or directly Etsy), and nothing else can be seen, but details such as English expressions, customer service email addresses and delivery channels can easily determine that the merchant is from China. One seller joked: "Generally speaking, those with 'my friend' in English are basically from Yiwu."

When recruiting operators in China, the language requirement for English market operations is mostly "CET-4", so Amazonglish is very common. Sellers and operators will continue to optimize product images or listing descriptions. Although it is a bit clumsy, this language is conducive to search.

4. The surge in sales can be used to infer that the US government is giving out money

The volume of Amazon orders from Chinese sellers has almost become a sensor of the US stimulus plan.

Mr. Li said he saw an increase in sales the day after the U.S. government started distributing money. Sales of one of his brands nearly doubled two weeks after the stimulus plan was implemented. “As long as they have money, they will spend it,” he said.

The next day, the seller's order volume was surprisingly sensitive to the U.S. stimulus package. Some time after the first U.S. stimulus package, Mr. Li's shoe orders continued to increase, with 3,000 pairs shipped every day .

Economist Scott R. Baker believes it is not surprising that some sellers, including Mr. Li, can clearly see an increase in sales: "We found that most of the spending was spent in the first week or so after receiving the check. Although most Americans seem to have saved their stimulus checks, those with less money in their bank accounts are more likely to spend. These consumers tend to buy food, non-durable goods and other cheap items - which are often products produced by Chinese merchants."

Americans are also saving money because of the pandemic. "There's less spending on durable goods, people aren't buying new cars and refrigerators," Baker said. "It seems like most of the checks are being saved."

5. Apply for a large number of US trademarks and create your own brand names

When it comes to product promotion, American and Chinese sellers have completely different approaches.

An anonymous Amazon employee said she returned to China after living abroad and often had to explain the Chinese mindset to Amazon colleagues in Seattle. "American entrepreneurs are often obsessed with branding and want to convince customers with a great brand story. In China, it's the opposite. They sell things first and then think about the brand."

Zack Franklin, an American consultant who has worked with Amazon sellers in Shenzhen for many years, said that Chinese e-commerce sellers have found another way to expand their business - in addition to expanding product lines or exploring new markets, they will sell the same things in the same place but with different brands. This can maximize shelf share and make money from consumers' illusion of choice .

In order to enter the Brand Registry Center, sellers need to apply for trademarks, so Chinese applicants have flocked to the US Patent and Trademark Office, and the seller, Mr. Li, has registered about 70 brands.

A law firm that handles trademark applications said the brand names chosen by Chinese people are a bit strange because these applications tend to be approved more quickly, while a name that is too close to a well-known brand may be rejected. Therefore, many sellers will create their own words and use them as brand names.

(Multiple-choice question ) How many of the above situations apply to Chinese Amazon sellers?

(option)

1. Never been to the United States, but closely follow American news;

2. Annual sales exceeded 1 million US dollars, and sales doubled due to the epidemic;

3. The listing description is Amazonglish, “clumsy but basically understandable”;

4. The surge in sales can be used to infer that the US government is giving out money;

6. Apply for a large number of US trademarks and create your own brand names

Amazon, Chinese sellers