Victims of the myth of Shenzhen Bay No.1: Tmall sellers earn 10 million yuan annually, and Amazon loses 2 million yuan

2022-11-21
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Author:Blue Ocean Yiguan
Source: egainnews

In recent years, Taobao sellers and JD sellers have been pouring into Amazon.
Attracted by the circle of friends, Tiktok's training advertisement of "Cross border E-commerce Becomes Rich", especially the myth of "Amazon sellers have bought a large number of No.1 luxury houses in Shenzhen Bay", engineers, vegetable sellers and Shenzhen financial practitioners have entered the arena.

Victims of the myth of Cross border Information Shenzhen Bay No.1: Tmall sellers earn 10 million yuan annually, and Amazon loses 2 million yuan

The victim of b2b Shenzhen Bay No.1 myth: Tmall sellers earn ten million yuan annually, and Amazon loses two million yuan
A group of old sellers of Tmall and JD have launched into the market under the call of "One Billion Level Mansion in Shenzhen Bay", all of whom want to swim in the sea of Amazon.
Victims of the myth of cross-border shipping to Shenzhen Bay No. 1: Tmall sellers earn 10 million a year, and Amazon loses 2 million
Feng Wuxian, an old seller of Tmall, is one of them.
Feng Wuxian has been a Tmall for several years,The company's annual profit is stable at around 10 million yuan.From the beginning of 2021, we will start to build domestic Tmall stores and Amazon at the same time.
However, Feng Wuxian, who was full of hope and energy at the beginning of the year, was frustrated by the reality at the end of the year.
Recently, he disclosed to the "domain news" of the Blue Ocean Yiguan website that he had decided to give up Amazon and planned to sell the registered American trademark.
"After nearly a year's back and forth, I made profits and losses,We lost more than 200000 yuan.Although we don't lose much money, if we continue to do so, we can't afford to spend time. If we want to make money, we can rely on domestic stores. "
The main reason why Feng Wuxian gave up Amazon was that it was difficult to make a big store.
He said: "Losing this amount of money is a small problem, but the biggest problem is that Amazon does not violate the rules at all, and it is difficult to make it bigger. When I realized this reality, I decided to discard the goods in the warehouse with one click, because I couldn't afford to hurt the time. "
Feng Wuxian, as a seller of Taobao series, is used to the "maintenance comment area": customers place orders, guide positive comments, lead to negative comments, and guide the deletion of negative comments. "This is not a brush in China," he said.
Amazon strictly prohibited and cracked down on this operation, leaving Feng Wuxian at a loss.
In China, it is not only a routine operation for sellers to maintain comments, but also a large number of sellers directly swipe sales, although swiping is explicitly prohibited.
A Shenzhen seller who made watches in Jingdong said that he had started to brush since he opened the store, and brushed all the way to the five-star store. The seller believes that almost all brands will brush, and those KA head sellers will brush harder, and the non brushing ranking and traffic will fall off immediately.
A Guangzhou seller who made clothes in 1688 was also used to "brushing". He has three stores. He borrows his friend's phone card and Alipay Bora to swipe orders. Each store swipes at least 300000 yuan every day, so as to ensure an endless stream of orders.
These operations, which are common in China, become extremely dangerous once they arrive at Amazon, which also makes the domestic sellers represented by Feng Wuxian who are going overseas very uncomfortable.
What Feng Wuxian couldn't bear most was the mechanism of Amazon to settle accounts after autumn.
Some operations may accidentally step on the thunder, but Amazon will not punish them immediately. It may take a long time to settle the accounts. At this time, a lot of manpower and material resources have been invested in the shop, which is hard to bear.
Feng Wuxian was shocked by the sweeping of his account since May this year. The hundred million level stores of big sellers such as Patoson, Tongtuo and Weiya were closed one after another.
A series of troubles finally led Feng Wuxian, a seller who made tens of millions in Tmall, to give up Amazon.
Feng Wuxian's frustration is not an example. Many sellers who have just transformed from domestic e-commerce to Amazon have encountered similar problems.However, some people still persist after stepping on several big pits.
Cong Yufeng, the seller, has many years of experience on Taobao and is also a ten million level seller.
In 2020, when Tiktok and the circle of friends were screened by "cross-border e-commerce", Cong Yufeng felt that this was a big windfall. By virtue of his e-commerce experience and supply chain resources, he should be able to "connect one method with ten thousand methods".
Cong Yufeng, who made up his mind, immediately allocated 3 million yuan from working capital as the starting fund for Amazon, and immediately started to recruit relevant personnel.
In less than half a month, Cong Yufeng has established an operation team of 8 people.
For the sake of "training people", Cong Yufeng asked eight operators to operate their own "blind selection" products and put them on the shelves of Amazon for sale.
As a result, the emerging team was hit from the very beginning. First, the wrong label was posted in the warehouse, which led to the product being returned, wasting both time and logistics costs.
Then, in the process of operation, some ineffective operation means also wasted a lot of money, such as invalid swiping.
Finally, the root cause of Cong Yufeng's blood loss was the products selected blindly.
Cong Yufeng had to remove one of the products from the shelves due to infringement, and paid a high settlement fee for it.
Under a series of blows, Cong Yufeng lost nearly 2 million yuan.
However, it is different from Feng Wuxian who gave up Amazon directly. After a period of "baptism of blood and fire", Cong Yufeng's team still withstood the pressure, and finally achieved the first profit in the following time after a big loss.
Cong Yufeng said, "The transition from Taobao to Amazon is a process of exploration. During this process, I found that my previous e-commerce experience was useless, and I was overconfident."
Cong Yufeng believes that Taobao and Amazon are two completely different ecosystems,Although they are all e-commerce companies, there are huge differences in their operation concepts. The consumers are also different.
Therefore, it is not easy to think that if you can do a good job in domestic e-commerce, you must do a good job in cross-border e-commerce. We should learn modestly to avoid more pitfalls.
Ma Linjie, the seller, has been working on Taobao for more than ten years. Tmall stores also have rich operating experience and their own factories.
In 2020, under the influence of the epidemic and the decline of the factory's foreign trade orders, Ma Linjie began to transform into Amazon and had a profound understanding of the situation between the two.
"As a seller of Taobao, I was not used to the rhythm of Amazon at the beginning."
Ma Linjie introduced that he wanted to operate a blockbuster on Taobao. First, he would spiral for seven days, and then he would be able to quickly start measuring after a routine operation.But on Amazon, the first popular model created by Ma Linjie took half a year.
Even if you are familiar with Amazon's playing style now, it will take at least one month for new products to hit the market.
"This is because the national conditions are different. Foreigners live a leisurely life, have patience, advocate the 'craftsmanship', and Chinese people pay more attention to efficiency. There is no better one, but each has its own advantages and disadvantages."
Ma Linjie has a good e-commerce operation thinking. This year, the revenue of Amazon alone has exceeded the traditional B2B foreign trade orders of the factory by more than two times. The road of transformation is still successful.
"Thinking change is a very important thing."
Ma Linjie introduced that at present, the biggest obstacle for Taobao sellers to transform into Amazon is that they cannot get rid of the inherent thinking of Taobao operations.For example, excessive pursuit of "volume".
The reason is that, in Taobao's operation, if we can quickly increase the volume, we can find the factory to get the goods, even if it is 1 yuan cheaper, which can squeeze out a lot of profits.
"For example, if you can sell 10000 orders every day after a quick start, even if it is only 1 yuan cheaper, you can earn 10000 yuan more every day."
The volume of new products is not difficult to achieve in Taobao.
On the one hand, China has a large population dividend and a large number of Internet users. It is relatively easy to achieve 10000 daily receipts. The population of the United States is only 1/4 of that of China. Even if the number of sellers in the U.S. market shrinks in the same proportion, the number of sellers in the U.S. market is only about 2500.
However, 2500 Sunrise orders have been sold on Amazon.
When it comes to cost, the original savings of 1 yuan is 10000 yuan in China, but only 2500 yuan in Amazon. The speed of snowballing has decreased significantly.
On the other hand, Amazon is obviously different from Taobao in algorithm. Taobao focuses on stores and Amazon focuses on links (products).
On Taobao, the seller can quickly make up for the loss through a loss making money explosion, bringing the store red, and the profits of other products.
However, on Amazon, a money loss explosion brings only the traffic of the product. If you want to make a profit, you can only work hard on the product and increase the price. The result of the price increase is that the traffic drops and falls into an endless loop.
It is obviously more difficult for Amazon to drive profits through single product volume.
In addition, domestic e-commerce does not have the trouble of overseas transportation. The logistics is more efficient and the turnover of funds in the seller's account is faster. Amazon, on the other hand, is facing a serious shortage of goods and logistics congestion, which is a huge challenge for fast volume sellers.
As a result, many Taobao sellers have suffered huge losses in their transformation to Amazon.
The failure to start the volume also led to the seller's anxiety, and then presented the second state: smashing the advertisement.
According to Ma Linjie, when he first worked as an Amazon, there was a time when his single product advertising ACOS was as high as 60%. He hoped that a large number of advertisements could quickly bring up the order volume.
There are still some effects, but the consequences also follow. Orders made through advertising are generally at a loss, while the profits from natural orders are just barely balanced.
However, the consequences of over reliance on advertising orders are still worsening.
In order to bring the product profit back, Ma Linjie tried to reduce the advertising expenditure. However, as soon as it is lowered, orders will fall precipitously.
Finally, Ma Linjie was forced to sell a product with a daily sales of 3000 dollarsAfter losing 300,000 yuan,Had to give up.
"It's not that I didn't get any results. In the future, when I made Amazon products, I paid more attention to profits and didn't focus on volume anymore. I won't promote them violently."
Another seller, Yu Chun, also has 10 years of experience in the domestic e-commerce industry. Started to contact Amazon in 2018.
Yu Chun introduced that Tmall flagship stores and Taobao stores have more "patterns" than Amazon, and their operation methods are also more abundant.But Amazon is more rustic,Pay more attention to the quality of products. Many effective means for Taobao have no effect on Amazon.
"The simplest is that on Taobao, the product image can be PS to distortion, as long as it is attractive. Most consumers are also used to this effect. But on Amazon, as long as the product is slightly different from the image, they will be complained."
Yu Chun said that it took him nearly half a year to improve the product drawing. On the one hand, it is to change ideas, on the other hand, it is to adapt to the aesthetic thinking of Europeans and Americans.
Even so, many sellers have been successful in the first world war when they were transforming from domestic sellers to foreign sellers.
Li Yunxi moved from Taobao to Amazon in 2018,The profit of the year exceeded 2 million yuan.According to Li Yunxi, she spent more time and energy on optimizing the pictures of Amazon products.
"This is my result after comparing the difference between Taobao sellers and Amazon sellers."
Li Yunxi believes that Amazon pictures are still mainly displayed, and the main picture is white background.
However, the pictures of Taobao stores generally have a progressive process in design, analyzing why to buy this product layer by layer. Although the pictures are colorful, they do not meet the foreigners' aesthetic standards,However, this "hook down" concept can be used for reference.
The white background of the main picture mainly shows the appearance of the product, and the following pictures show the functions and features one by one.
"E-Commerce shopping is a process of visual shopping, and it's certainly good to be a seller of A+pages. If you can't be a seller of A+pages, you should pay more attention to pictures."
Li Yunxi believed that the pictures should not only be a visual display,They should also have the ability to "communicate" with buyers.
According to her observation, some big sellers have shown their advantages in pictures. For example, the product drawings of Anke and Aoji are very exquisite.
Taoxi and JD sellers have great potential to do cross-border e-commerce, which is supported by Aoji
For the advantages of Taoxi and domestic e-commerce sellers, some cross-border e-commerce big sellers have also paid attention, such as Aoji.
Recently, Aoji Technology, a big seller of cross-border e-commerce, established an ecological chain incubation center,Start the entrepreneurship support project.
As the investor of the project, Aoji will invest in proportion with the recipient investor to establish a new company to operate the Amazon project.
The investment is based on the proportion of 30% for Aoji and 70% for the seller, and the shop enjoys the same treatment as Aoji's own shop in the early stage. After the store is stable and mature, Aoji will withdraw from the decision-making level and leave it to the seller to operate.
Equivalent to the contribution of Aoji,Support new sellers, do not seek control, and do not interfere in the sellers' decisions.For small and medium-sized sellers, this is really a good plan.
However, for the project of Aoji, it is preferred to cooperate with sellers with domestic e-commerce experience or suppliers with supply advantages.The first batch of project partners do not consider sellers with Amazon operation experience.
In response to this phenomenon, the relevant person in charge of Aoji told the Blue Ocean Yiguan website domain news that there are many excellent products and designs in China, and there is no suitable overseas sales channel. Aoji's original intention is to serve as a "guide" for these excellent product providers.
At the same time, Aoji is more optimistic about the supply chain capabilities and resources of domestic e-commerce sellers. It is believed that domestic e-commerce sellers have more advantages in this regard.
The victim of the myth of Shenzhen Bay No. 1 of CMIT: Tmall sellers earn ten million yuan a year, and Amazon loses two million yuan
It can be inferred that Aoji also believes that domestic e-commerce sellers still have considerable potential.
However, whether the transformation can succeed in the end still needs the baptism of actual combat.
A successful seller from domestic e-commerce to Amazon summarized his own transformation experience:
● Change of concept
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