Annual sales of 500 million, making huge profits by selling niche products!

Small tools bring endless business opportunities.

As the saying goes, if you want to do a good job, you must first sharpen your tools. Tools may seem insignificant, but in Europe and the United States, they not only play a big role, but also have a large market. Due to the high labor costs, local consumers will do many things by themselves, including home appliance repairs, house repairs, garden maintenance, etc.

Over time, this trend has also brought prosperity to the power tool industry. Many Chinese companies have successfully advanced to become top sellers in specific categories by relying on their unique product selection strategies and operational methods, such as YesWelder and Saker mentioned in the article.

From OEM to cross-border, sellers rely on niche products to become the top sellers on Amazon

When it comes to welding tools, it is hard for anyone to combine brand, family, 2C and other elements together. But it is precisely in this track that someone has made the brand the top of Amazon and become a new force in the C-end of the North American welding industry.

YesWelder, a brand focusing on welding products such as welding and welding caps, was born in Wenzhou in 2018. Before the brand was born, the company mainly exported its products overseas through OEM, but it often encountered difficulties in grabbing orders and low profits.

At that time, most domestic large factories made their living by OEM for overseas markets and had no awareness of building brands. Foreign traditional welding brands such as Lincoln, Miller and ESAB focused on professional tracks and were expensive.

While the founder of YesWelder saw business opportunities abroad, he also realized that foreign trade OEM was not a long-term solution. Only by establishing a brand could he break out of his comfort zone and achieve further improvement. So he founded the brand YesWelder in 2019.

In April of the same year , YesWelder entered Amazon and sold its products at a price only 20% of that of traditional big brands, achieving good sales and accumulating a group of early seed users.

Currently on Amazon, the price of YesWelder welding machines ranges from US$100 to US$1,000. Some accessories, such as gloves, helmets, welding wires, welding rods, etc., are priced as low as US$29 to US$89, and most of them are listed on Amazon's BSR.

Specifically in the company's main welding machine category, YesWelder often occupies half of the top ten seats and ranks first in the category.

Take the welding machine below as an example. The price is between $138 and $504, and it ranks first on the BSR. The sales in the past month are over 3K, with 3554 ratings. Consumers say it is "not only small and light, but also very easy to weld thin metals."

In order to eliminate the risks brought by a single income channel and build brand influence, YesWelder also built its own independent website.

According to Similarweb data , in August this year , YesWelder.com ranked 19th among similar websites in the United States, with monthly visits exceeding 200,000. Among them, more than 40% of the traffic came from direct traffic, and nearly 40% came from search traffic. Obviously, YesWelder's brand building has achieved considerable results.

With annual sales exceeding 500 million, it has established a firm foothold overseas

After establishing its brand and finding the right direction, YesWelder has also entered a period of rapid development overseas.

In 2021, its GMV reached 300 million yuan; in 2022, YesWelder's annual revenue almost doubled to over 500 million yuan. On Black Friday this year, the single-day sales of its independent website even exceeded that of Amazon and other platforms.

It is not difficult to see that YesWelder's advancement is not as legendary as the industry's big sellers, but is more in line with the reality of the modern chemical industry.

After working in the welding industry for more than ten years, YesWelder chose to be its own boss and conquer the North American market due to the low profits and difficulty in getting orders . However, it is not easy for outsiders to gain a foothold in a market dominated by local established companies.

To this end, YesWelder has made efforts in many aspects.

Not only is the price only one-fifth of that of established companies, but it also avoids the professional track that they focus on, and makes entry-level welding tools for novices and families. In order to help novices get started with the product more quickly, YesWelder has also improved the product by automating the parameters and operation steps of important functions.

In order to bring welding tools to every household, YesWelder has personalized the product design. Tattoo artists design decals and attach them to welding helmets, making the tool products "trendy and playful". It is precisely this unusual idea that makes this series of products a hit as soon as they are launched.

In terms of brand promotion, YesWelder mainly focuses on the layout of platforms such as Instagram, YouTube, TikTok, and Facebook.

Different from previous advertisements, YesWelder advertisements embody more pragmatism, mainly sharing photos that match the product tone of welding machines, videos of skills that welders need to have, displays of welding process works, and technical issues that welding enthusiasts are interested in.

After all this, YesWelder has accumulated 100,000 followers through multiple social media platforms, even surpassing many traditional American brands.

Ranked among the most influential cross-border brands in China, tool brands are making a fortune overseas

Speaking of power tools, I believe everyone is familiar with it. In the "Kantar BrandZ China Top 50 Global Brands" and "China Cross-border E-commerce Brand Influence List" and other lists, we have seen a brand many times, that is Worx.

A high-end power tool brand from the Bosch Group, mainly engaged in power tools, gardening tools, etc. In less than two years after entering AliExpress, it won the title of "AliExpress Top Ten New Brands".

Specifically for products, Worx smart lawn mowing robots rank first in global omni-channel market share, and products in many subcategories rank among the top in categories such as electric shears, workbenches , car vacuum cleaners, and screwdrivers .

Saker is also one of the best-selling domestic power tools exported overseas. Insighting into the needs of overseas women for power tools, Saker abandoned products traditionally used by men and focused on making lightweight, mini but powerful products.

In addition, Saker priced its products at around US$100. With its extremely competitive price and focus on women, Saker quickly stood out from a number of traditional tool brands.

Statistics show that Saker’s total sales on Amazon have exceeded RMB 200 million, with its star products generating monthly sales exceeding USD 1 million, and ranking No. 1 in the category sales list.

It is not difficult to see from the above cases that Chinese power tool companies are becoming hot-selling products overseas with their excellent quality, high cost performance and continuous innovation and upgrading. On the other hand, it also reflects the potential of power tools in the current overseas market.

Data shows that in 2022 , the global power tool market sales volume was US$48.45 billion , and it is expected that by 2025, the market size will reach US$56.1 billion, with an annual compound growth rate of approximately 6.7%.

As a key market, North America has a vast territory and a sparse population, so the demand for tools is naturally high, and it is expected to obtain more than 31% of the global share in 2025. According to Amazon data, power /hand tools, auto maintenance tools, home appliance tools and other products on the platform are more popular.

In the future, as demand in the European and American markets continues to grow, I believe that more tool companies will seize the dividends of the times and go abroad to gain more overseas market share.

Power Tools

YesWelder

North America