Competition on the Amazon platform remains fierce!
As the leader in cross-border e-commerce platforms, Amazon is undoubtedly the preferred platform for entrepreneurs. At the beginning of 2024, a large number of people outside the circle have expressed their intention to join Amazon and are ready to do a big job. Among them are highly educated talents who graduated from prestigious universities such as Tsinghua University and Peking University.
Amazon has its own advantages, and many sellers have made a lot of money by relying on the big tree of Amazon. However, there are countless sellers who have poor performance, and many lose tens of thousands or even hundreds of thousands of yuan a month. The entry threshold of Amazon, a cross-border e-commerce platform, is getting higher year by year ...
Tear off the "loser" label! More and more highly educated talents are eyeing Amazon
The current Amazon platform is already very mature, and the market competition can almost be described as "close combat". Even so, in 2024, there are still a large number of outsiders who want to enter the market to share a piece of the pie:
Recently, many friends have consulted Amazon. A friend who returned from abroad is eager to work on Amazon . Many second-generation factories are also planning to develop this platform. …
According to feedback from many Amazon sellers, their relatives and friends are increasingly curious about Amazon and are asking about opening stores. In addition, many people outside the industry have prepared their startup funds and plan to start their business after the holidays, including some highly educated talents and wealthy people with abundant funds.
" I know a couple, one has a PhD in law from Harvard, and the other graduated from Tsinghua University with the top score in the college entrance examination. They are preparing to enter Amazon with huge capital. " According to feedback from industry insiders, more and more highly educated people have set their sights on Amazon in the past two years. Sellers with high education have obvious advantages, and they can build stores at a faster pace.
Once upon a time, Amazon was known as a "gathering place for losers". The entry threshold of the platform was very low at the beginning, and the operation process did not require too high technical content. Even people with only junior high school education and no English basics could easily make a lot of money on Amazon. With the update and iteration of the cross-border e-commerce industry, the days of "making money as long as the product is put on the shelf" are gone forever. The continuous influx of high-end talents, capital, and technology has continuously accelerated the elimination of Amazon sellers.
Seller layout: Amazon is the main one, and other platforms are supplementary!
Even so, Amazon remains the favorite e-commerce platform for cross-border sellers.
In recent years, the multi-platform layout model has become popular. Amazon sellers adhere to the principle of "not putting all eggs in one basket" and have invested in other e-commerce platforms such as TikTok and Temu. Overall, the sellers' strategic layout is mainly based on the Amazon platform, and other platforms are supplemented! Platforms other than Amazon are either used as a channel to clear inventory or as a low-cost channel for testing models.
1. In terms of product testing, there is a saying in the cross-border circle: all products in the world are copied, and the best-selling products on the Amazon platform are likely to remain best-selling products when moved to Temu, TikTok and other platforms. In other words, all the best-selling products on Amazon are worth re-making on other platforms, and vice versa. Therefore, many Amazon sellers have found new ideas for operation. When developing a new product, they first go to Temu and other platforms for a test. If the product has a considerable number of orders, it proves that there is consumer demand, and then they go to Amazon to sell it.
Industry insiders said, "Comparatively speaking, the cost of launching new products on Amazon is higher than on other platforms. By using platforms such as Temu to test products, we can use low-cost and cheap traffic to grasp the market demand potential, and even conduct AB testing. After iterative upgrades and setting up barriers such as patents and copyrights, we can accurately launch products on Amazon to create brand boutiques."
2. In terms of clearing inventory, many Amazon sellers have tried and found that Amazon is still the most friendly platform for sellers. The input-output ratio of many platforms, such as Temu, is not as high as Amazon. It is not recommended for cross-border sellers to spend a lot of effort on these platforms, but to use them as a channel to clear inventory and speed up capital turnover.
" When I was working on Amazon, I was thinking about how to make high-quality products every day. When I was working on Temu , I was thinking about how to reduce costs every day . " A cross-border seller compared the two platforms and found that Amazon was more attractive to him.
Data shows that in 2023 , Amazon surpassed a number of e-commerce platforms and successfully ranked first in the list of the world's best e-commerce websites. In addition , Amazon 's number of independent visitors ranked first in many countries, far ahead of the second place. On the PC side , Amazon ranked first among shopping websites in mature e-commerce markets such as the United States, Canada, the United Kingdom, Germany, France, Italy, Spain, and Japan; on the mobile side , Amazon's number of active users, usage penetration, and sales rankings all ranked first.
In summary, despite the constant challenges posed by new platforms, Amazon still holds the top spot in cross-border e-commerce platforms. Amazon's model is already very mature, and it has considerable weight in the minds of both buyers and sellers . This sense of trust is precious and will not be affected by the impact of one or two new platforms in a short period of time.
There are risks in doing business on Amazon, and there are many people who lose hundreds of thousands of dollars a month!
Amazon data shows that in the past year, the number of items sold by Chinese sellers to consumers and corporate customers through Amazon's global sites has increased by more than 20% year-on-year. In the past year, the number of Chinese sellers on Amazon with sales exceeding US$1 million has increased by more than 25% year-on-year; the number of Chinese sellers with sales exceeding US$10 million has increased by nearly 30% year-on-year. (Source: Amazon, the past year refers to October 1, 2022-September 30, 2023)
One phenomenon that cannot be ignored is that doing business on Amazon is indeed very profitable. Unfortunately, many people only see the glorious side of sellers and ignore the risks and costs behind making money. In fact, there are many people who lose money doing business on Amazon!
“ I’m not sure that you can easily earn tens or hundreds of thousands of yuan a month by selling on Amazon , but it is very possible to lose tens or hundreds of thousands of yuan a month . ” An Amazon seller said that now there are rumors that “Amazon is very profitable” and some bloggers like to show off their high performance reports in public. The stores are most likely “cannon fodder” that sell at a loss to achieve good results. On the surface, their sales seem to be considerable, but in fact their costs are higher than their profits. The purpose of doing this is just to attract novices to enter the market and earn training fees. The risks and costs of selling on Amazon are far beyond imagination. Even experienced sellers with several years of experience will continue to make mistakes and lose money, and they will repeatedly run into obstacles in product selection and other links, not to mention newcomers.
The ecosystem of Amazon's cross-border e-commerce is constantly being optimized. This platform, which is still profitable, is no longer suitable for unprepared newbies to enter.
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