Minimum entry fee of 2 million? Individual sellers are losing competitiveness

But now, the cruel reality has long shattered people's dreams, and many people have given up struggling and are just thankful to be able to keep their current jobs.

Amazon may have entered the "enterprise-level" competition landscape

Recently, a seller shared in a forum that Amazon has entered the competition among enterprise-level hot-selling products, which means that the survival space for ordinary individual sellers may become smaller and smaller in the future.

This seller believes that the so-called enterprise-level competition has several main characteristics. First, most sellers on the platform will focus on hot-selling products and single products, rather than casting a wide net and relying on channel dividends to reap sales.

Secondly, if sellers do not become top sellers, it is difficult to make a profit because they cannot enjoy stable traffic. However, there are only a few top sellers in each category, and they are all big sellers with rich experience, strong strength, mature supply chain and sufficient funds. Therefore, it is difficult for ordinary small sellers to challenge them.

On the other hand, the speculative product selection that small and medium-sized sellers are good at is becoming increasingly difficult. Even if they occasionally select one or two products with high profits and low competition, they will be equalized by other competitors within a month and then fall into head-on competition. Moreover, products with too low barriers to entry have no long-term operating value.

In addition, it now takes longer to create a listing. This seller believes that it will take at least half a year, and two to three replenishment cycles, to have a chance to make a good listing. Therefore, even if the product is very good, it will take half a year to make money, and losses in the first three to four months are inevitable.

Overall, the seller believes that if you want to succeed in starting a business on Amazon, you first need to have many years of industry experience, and then sufficient funds and a complete supply chain. In terms of funds, the seller believes that the product investment alone requires at least 1 million, plus the working capital that can sustain the team for half a year, a total of at least 2 million.

In other words, if you can't come up with that much money, your entrepreneurial journey at Amazon may be doomed to failure.

Although there is still a lot of controversy about the number of 2 million, most sellers have surprisingly reached a consensus that it is indeed becoming increasingly difficult for individual sellers to be successful.

"It's very true. Funding and supply are becoming more and more important. Social platforms are full of individual cross-border e-commerce startups, with gross profits of 50,000 after half a year. What's outrageous is that there are still many 'leeks' who believe it."

"It's very hard to endure in the early stage, because you need a stable supply of goods and a continuous cash flow. If you lose money for a long time, you will feel very stressed. In general, starting your own business requires you to take into account all aspects, and there are many miscellaneous tasks, which requires a lot of energy."

“Working at Amazon is just like working in any other industry. Most people are just workers, so all they can do is choose a good company and then grow with it.”

Judging from the current environment, blindly starting a business is indeed not advisable. If you are not fully prepared, working honestly may be the safest option at the moment.

A newbie joins Amazon and pays 200,000 yuan

Although the current entrepreneurial environment is very difficult, there are still many "stubborn" people rushing in one after another. Most of them are inexperienced newbies. They just saw the so-called "get rich quick" cases and fantasized that they could also make a fortune. They didn't expect that they would be the targets of harvesting.

Xiao Zhang is 30 years old and has worked in a state-owned enterprise for 6 years. He has never been involved in cross-border e-commerce before. As his work entered a bottleneck period, Xiao Zhang felt that he was tired of the nine-to-six life and wanted to change the status quo and achieve financial freedom.

By chance, he saw an advertisement on a social platform: Newbies can easily learn how to work on Amazon, and earning a million dollars a month is no longer a dream.

Seeing this sentence, Xiao Zhang was moved and immediately contacted the other party through the homepage. After communication, he learned that the other party was a training institution specializing in cross-border e-commerce, and had helped many people achieve "wealth freedom" so far.

After some lobbying, Xiao Zhang began to imagine his life after becoming financially free. Without further ado, Xiao Zhang decisively paid 200,000 yuan in tuition fees, quit his job in a state-owned enterprise, and devoted himself to Amazon.

During the training period, Xiao Zhang only learned basic operations such as how to put products on shelves, how to advertise, and how to select products. However, he thought he had mastered the secret of success and couldn't wait to get started.

After the training, Xiao Zhang took out another 100,000 yuan from his savings as start-up capital and started his Amazon journey. He thought that the next stage was to just sit back and collect money, but he was soon slapped in the face by reality.

After Xiao Zhang's first batch of products was sent to the overseas warehouse, the imagined explosion of orders did not occur. Instead, the inventory continued to accumulate, and even a substantial price reduction promotion had little effect.

Looking at this scene, Xiao Zhang was as anxious as an ant on a hot pot. At this time, the training institution suggested that he could increase the investment in advertising so that more people could see his products. At this time, Xiao Zhang had no other choice but to try all kinds of methods, and the result was predictable.

After several months of struggle, Xiao Zhang, having almost exhausted all his savings, finally faced reality and decided to stop his Amazon business, and at the same time his own entrepreneurial dream.

Through this failed entrepreneurial experience, Xiao Zhang understood the profound meaning behind the words "starting a business is not easy". At the same time, he also realized that for an inexperienced layman, blindly entering a new industry is undoubtedly asking for trouble, and related training will actually not play much of a role.

In the battlefield of Amazon, people often only see the glory of the big sellers after their success, but ignore the countless failures. For outsiders, perhaps only by experiencing the hardships in person can they understand that Amazon is not a startup paradise where money can be picked up everywhere.

Amazon

Individual sellers

Entrepreneurship