Conversion rate increased tenfold! 10-year Amazon sellers began to seek change

At this critical time when the industry is undergoing tremendous changes, some sellers are unwilling to give up their years of accumulated experience and would rather stick to one path. However, many sellers are willing to accept changes and begin to embrace new models and platforms wholeheartedly.

The single product has over 60,000 reviews . They have grown from a small factory to a top seller in the category.

The protagonist of today's article is Guangzhou's Chaoyang Technology, which was founded in 2014 by brothers Xu Tailong and Xu Taiquan from Chaoshan.

Initially, the two brothers ran a small factory, mainly producing underwear. Later, after coming into contact with e-commerce platforms such as Taobao, they gradually shifted their focus from offline to online.

In 2014, they accidentally discovered that they could sell products directly to overseas consumers through cross-border e-commerce platforms, which was much more convenient than the traditional foreign trade model. So they established Chaoyang Technology . The two words Chao and Yang represent their hometown and their vision for the future.

The next three years were a period of wild development for the cross-border e-commerce industry. At that time, the operation model of the sellers who entered the market basically relied on distribution. As long as they uploaded the products to the platform, they could get orders. Many people made their first pot of gold, and Chaoyang Technology was no exception.

However, after entering 2018, the Amazon market gradually approached saturation, and profits remained stagnant and even began to decline despite continuing to distribute products in large quantities. At this time, Chaoyang Technology decisively chose to transform and began to focus on vertical categories, cutting off all low-profit and money-losing product lines, and began to focus on differentiated research and development to make its products more refined.

At that time, Chaoyang Technology chose to focus on functional clothing on Amazon, such as body shapers, because there was no well-known brand monopolizing the market in the body shapers category at that time, but consumer demand for such products had been rising. In addition, Shantou also has advantages in the supply chain, so it was a good choice to choose this track.

Of course, choosing the right track is only the first step. If you want to achieve long-term development, constantly polishing your products is the key, and Chaoyang Technology clearly has such determination and perseverance.

As we all know, among all major categories, clothing has always been known for its high return rate, but Chaoyang Technology has been able to maintain a relatively low return rate. The secret lies in its product development principle centered on user experience.

It is understood that Chaoyang Technology attaches great importance to user feedback and will create differentiated new products based on user needs. Its founder once said in an interview that Chaoyang Technology had also encountered difficulties in the process of product development.

At that time, Chaoyang Technology had a body shaping garment, but it received negative reviews from overweight users because the zipper had insufficient bite force and could not be pulled up or fixed.

In order to meet the needs of such users, Chaoyang Technology upgraded and improved the YKK zipper technology and specially replaced the zipper with better quality but twice the cost to improve the tightness and stability of the body shaping garment. It even threw away millions of dollars worth of FBA inventory just to let users enjoy the best products.

In addition, Chaoyang Technology also continuously collects buyer comments and body proportion data of users from various countries, establishes a database and continuously updates it, so as to meet the needs of users of different body shapes as much as possible, continuously launches more product lines, and makes new products based on new needs, thereby reducing the return rate.

It is this serious attitude towards product development that has allowed Chaoyang Technology to quickly gain a large number of fans and successfully become one of the top sellers in the category. Its best-selling products have accumulated more than 60,000 reviews on Amazon .

With TikTok fully closed, Chaoyang Technology welcomes its second growth curve

As the industry continues to develop, many myths of wealth creation in the cross-border e-commerce industry have attracted a large number of Chinese sellers to enter the market, which has further increased the competitive pressure among sellers, and the living space of many sellers has been severely squeezed. At this critical moment, Chaoyang Technology once again chose to transform: it started to build a brand.

At the same time, Chaoyang Technology has increased its investment in social media, especially TikTok, and has found many Internet celebrities to promote its own products and brands.

At the beginning, a TikTok celebrity’s video promoting products went viral, with over 20 million views. This wave directly brought more than 20,000 orders to Chaoyang Technology’s Amazon store .

But there was a problem at the time. After doing marketing and shooting videos on TikTok, one still had to jump to Amazon to complete the transaction. This step would cause the customer retention rate to drop significantly.

It was not until July this year that TikTok Shop’s US site was officially opened for entry. Chaoyang Technology immediately submitted its application materials and became one of the first sellers to join.

With the establishment of the store, users have realized a full-link closed loop from watching videos to entering the store to place orders, and the conversion rate has been greatly improved. It is understood that before, it was necessary to jump from TikTok to Amazon, and the conversion rate was only about one thousandth, but now with a full closed loop, the conversion rate can be increased tenfold.

Unlike Amazon, which takes time to accumulate, TikTok can bring explosive growth in traffic. As long as a video goes viral, it can generate tens of thousands of orders. Xu Tailong believes that it took them 10 years to reach the current scale at Amazon , but it may take less than 10 months to reach a similar scale at TikTok.

This statement is of course exaggerated, but it is enough to show his appreciation for TikTok's potential. At present, Chaoyang Technology's mainstream sales channel on TikTok is still short videos, but the company believes that live streaming will be the next trend and has been trying to open up the process of live streaming sales.

Chaoyang Technology believes that in order to do well in TikTok, it needs to turn the product into high-quality content, fun and interesting short video content that can touch the hearts of consumers. It will not work according to the previous logic of e-commerce.

Currently, Chaoyang Technology has more than 30 employees specializing in TikTok, all of whom were recruited in the second half of last year, and the department is still expanding.

For companies, TikTok is not only an e-commerce sales channel, but also a high-profile marketing platform. On TikTok, a video can easily have hundreds of thousands or millions of impressions. If the number of views on TikTok reaches several billion in a year, simply letting consumers see their own brand logo is a good business.

Moreover, once a product becomes a phenomenal spread on TikTok, it will further boost Amazon's sales, and its ranking will naturally rise. It can be said that traffic utilization is maximized.

The success story of Chaoyang Technology will surely touch the hearts of many sellers. The reasons behind it, of course, cannot be avoided from the correct decisions it made time and time again at critical moments. These major decisions require the helmsman to have a deep understanding of the current environment, which is worthy of learning and reference for small and medium-sized sellers.

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