Net profit of 200 per order! A group of sellers began to focus on profits

"No more rolling, making money is more important!"

While many people are still frantically increasing prices and sales, a group of sellers have chosen to turn in another direction.

Selling at a loss is a thing of the past, profit is king now

A few years ago, when Amazon’s internal circulation was at its worst, a considerable number of sellers were selling at a loss.

Take the fascia gun as an example. In the early days, this type of product attracted a large number of sellers because of its high profits and great demand, causing the relevant market to quickly become a red ocean. Sellers who entered the market later could only drive up prices if they wanted to get a piece of the pie.

The result is that some sellers may seem to have good sales, but after deducting various fees such as Amazon category commission, first-leg freight, FBA last-leg fees, and advertising fees, they find that they have lost a lot of money.

Some sellers used to think that they could increase sales by offering low prices first, and then change prices once they were ranked high. However, in practice, they found that this was not the case at all, because there will always be someone competing with a lower price, and there will be no chance for you to raise prices.

Now, sellers have also recognized this reality. Every sale is a loss, and the days when sellers lost money to gain publicity may be gone forever.

Previously, Yien.com came into contact with a group of relatively low-key Amazon sellers who might only sell a few orders a day but lived a very comfortable life. The secret lay in the profits behind the products.

According to one of the sellers, he only sells 5 orders a day on average, but the net profit of each order can be as high as 30 US dollars, which is equivalent to more than 200 yuan in RMB. In total, he can earn more than 1,000 yuan a day.

The net profit of 200 yuan per order is indeed a bit exaggerated in the eyes of most sellers, and many people even question its authenticity. Faced with doubts, the seller calmly said that he was selling high-priced products with a certain threshold, and he also invested a lot of money in the early stage of product development.

When asked about the specific category he was in, the seller remained silent. It was obvious that he did not want to reveal what he made a living from.

In addition to this seller who can earn 200 yuan per order , there are many other sellers who are also madly pursuing profits.

"On average, there are about 6 orders a day, and I make about 20,000 yuan a month."

"There are only 500-600 orders a month, and the average profit per order is about 70."

"I don't have high requirements. I just want to have more than ten orders a day. I'm happy with that."

Judging from the descriptions of these sellers, it seems that making money is not a difficult task, and selling at a high unit price is even easier, but what is the real situation?

High-priced products are not easy to sell

Among Amazon sellers, many entrants will choose to sell low-priced products first. After all, low-priced products require a smaller initial investment and are more friendly to small and medium-sized sellers.

However, sellers who only sell low-priced products will also encounter many problems: first, the profit margin of low-priced products is very small, and there is little room for price adjustment when competition is fierce. Secondly, low-priced products usually can only be sold at low prices and in large quantities, which means that sellers need to bear greater logistics pressure. Most importantly, low-priced products usually have no threshold, so they can easily be copied by other sellers, resulting in a sharp drop in sales.

Compared with low-priced products, high-priced products do have many advantages, such as relatively high profits and less intense competition. However, high-priced products are not so easy to make.

For ordinary small and medium-sized sellers, the initial capital investment alone is too much to bear, not to mention the various subsequent costs.

After deciding to sell on Amazon, seller Nick decided to sell high-priced products, thinking that this was the only way to make money. After some research, Nick chose a 3D printer and started his own sales journey.

But soon, the first bucket of cold water was poured on him. Since he had to prepare the goods in the overseas warehouse in advance, Nick found that it would cost a lot of money just to prepare the goods. Finally, Nick decided to send a small amount in the first batch to test the waters.

Subsequent problems followed one after another. Since the products were not cheap, buyers would be more cautious when purchasing. New links like Nick's were unlikely to convince buyers to place orders.

After not receiving any orders for a while, Nick panicked and had to lower his prices and increase his advertising efforts. Eventually, he received an order, but Nick’s happiness did not last long.

The buyer's return request was the last straw that broke the camel's back, and along with it, Nick's entrepreneurial dream. In the end, Nick came to the conclusion that small sellers were not suitable for products with high average order value, and could not afford the risk.

Indeed, the cost of returns is a "hidden cost" that many sellers tend to ignore . Some sellers may be very confident in the quality of their products, but they obviously underestimate the picky nature of overseas consumers. After all, they spend hundreds of dollars to buy the products, and buyers will apply for a refund if they are not satisfied.

Whether to sell high-priced or low-priced products, sellers still need to consider carefully according to their own situation. However, Amazon has obviously put more effort into low-priced products recently.

Amazon to launch low-price mall

Under the impact of Temu, Amazon also gave up its "high-end" image.

In June of this year , news came out at Amazon's closed-door meeting that Amazon would launch a new low-price shopping mall, which sparked considerable discussion in the industry.

It is understood that the low-price mall specializes in providing buyers with white-label low-priced goods. It is positioned as a store within the main site and shares the backend with the main site.

Sellers have the right to select products, set prices and participate in activities, but the product price cannot exceed 20 US dollars. Similar to Temu's full hosting, Amazon's low-price mall orders are fulfilled and delivered by Amazon's warehouses in China, and the delivery time is about 9-11 days.

As to why Amazon launched the low-price mall, industry insiders almost unanimously believed that it was "stimulated" by Temu.

A few days ago, a piece of data attracted the attention of sellers. The data showed that in August this year, the number of Temu's APP users reached 91% of Amazon's users, and it is expected to surpass Amazon within the year.

This is indeed a bit scary. You know, it’s only been two years since Temu was launched, and it wants to shake up Amazon, which has a 30-year foundation. It’s no wonder that Amazon wants to launch a low-price mall to get back in the game.

However, due to the recent tightening of T86 customs clearance policies, Amazon's low-price mall may be delayed for a while.

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