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I have shared a post before, which talked about my experience of transitioning from a large company in Beijing to working for Amazon. My experience in Amazon has been from entering the industry, to the peak, and then to the trough. It made me realize that the direction of the Amazon industry is constantly changing. If you stick to the original success and stay the same, you will eventually fail.
Xiaoman life, waiting for flowers to bloom: In 2019, my lover and I had a baby and bought a house. Having a baby is a good thing, and buying a house is also a good thing, but at that time we bought a house from Evergrande...
So, we are looking for change.
We decided to achieve transformation in 2024. When we started the transformation, we directly adopted the FBM model, distributed a large number of products, and then found hot products through the audition model! But the original model is getting harder and harder to do. The risk of infringement is bound to be high when distributing a large number of products. We closed several key stores due to infringement, and our performance plummeted. We clearly realized that the distribution model is not in line with Amazon's new model. So we must transform, otherwise our Amazon business will come to an end in a short time.
There are several problems with transformation:
1. Which site should I choose when switching to FBA?
Last month, I registered a new store and applied for a new trademark. When I registered the trademark, it said that North America has the most registrations, followed by Japan. This means that North America and Japan are now the sites where Amazon merchants are pouring in. The competition pressure from these sites will be very high. If we enter, will we have room to survive?
As for the European site, judging from the trademark registration data, the competition pressure in the European site is not very great, but the compliance requirements in Europe are very high, with VAT and packaging laws. The operating costs are indeed higher than those in North America and Japan, and the trademarks in the European Union are indeed expensive. How should we choose the market when we first start FBA?
2. Confusion in product selection.
Before, we selected products by directly distributing them and selecting hot products based on the market's reaction to the products. If we do FBA, how should we select products? Select products through product selection software and big data? I don't have enough experience in product selection. Sometimes I get confused while selecting, and I still can't make a choice after half a day or a day.
Now if the US site has links, if it is not FBA warehoused and put on the shelves, the exposure rate and visits of the self-delivered links are pitifully low. It is really difficult to send FBA after self-delivery. I hope that experienced experts can give us some advice on how to break through in product selection?
2023 is a dark year, I can't make any money! I bought some funds before, but now the stock market and fund market are still in a downturn. This economic downturn is really painful.
Will the economy improve in 2024? I feel that the current economic market has reached a bottleneck. It is no longer the era of flourishing industries. Now the industries have reached a point where it is difficult to develop and have begun to involute.
The boss said that this year is the most difficult year in the past, but it will be the best year in the future! I don’t want what the boss said to come true!
"Wonderful Reply" BYZGR Agree from: Xiaoman Life Which site should I choose when switching to FBA?
If you entered Amazon in 2019 and can achieve a monthly profit of 60,000+, it means that you have some hot products in some categories on Amazon. I think you should start with the sites and categories you are familiar with, which is your accumulated advantage. After all, the competition is completely different for different sites and different products. Compared with completely new categories, your success rate will be higher if you do categories you have been exposed to before. Of course, this is not absolute. Don't let this limit your thinking, because hot products on Amazon require a certain fate. For some categories, you can sell them as soon as you discover them early, and you don't need any ability.
Regarding the competition issue you are worried about, I think you don’t need to worry about it. Because if you have a product that cannot be made and encounter a declining market, even if you go back to 2019, you will still feel that the competition is fierce (think about it carefully, are all markets in 2019 incremental markets? Are there only stock markets in 2023?). Similarly, if your product becomes popular as soon as it is launched this year, you may feel that Amazon is still easy to do business now. So I think you should not worry about this kind of macro-environmental problem. It seems to be related to you, but it actually has nothing to do with you. Since you have chosen to transform into FBA, you should not still think about this problem. You should focus your thoughts and energy on product development and operation (actually making money), actively use all your brains and energy, and earn this money on Amazon in a down-to-earth manner.
This year I have been working on the stationery category of the US site for half a year. Before that I was working on the European site (I also started in 2019). Let me briefly talk about my situation here (it’s just the category I’m working on, it’s not representative at all). The original poster can refer to it: the profit of the European site is indeed getting thinner and thinner, and the traffic is also declining year by year. Originally, the top 3 or 4 links could make some money, but this year, most of our company’s products can only make money if they reach 1~2, and the links in other positions can only break even. There are even cases where 6,000 pieces of goods are sold to make a profit of 5k+. I’m ashamed, hahahahaha. This is just the situation of the German site. The UK site was abandoned last year because the costs in all aspects have increased just from Brexit, and the traffic of the category I’m working on has dropped drastically, and its profit point can no longer meet my requirements, so I didn’t do it this year.
The US site took advantage of the Christmas season at the end of the year, and the product was sold out as soon as it was launched, which made me feel okay. However, compared with our initial product selection, the profit has also dropped by 10 percentage points. Because the US site has a large market, it is generally good (advertising is really expensive, like a bottomless pit). Now the number of orders has returned to 20, and it is just for sale, and I don’t care about this product anymore.
To sum up: European site (Germany is the main force): the market is very small compared to the United States, and the current profit is also thin. Advantages: the means of competition are relatively simple. American site: the market is very large, and the profit is also quite thin. Advantages: large volume, many new things emerge every year, and the activity is better than the European site.
Confusion in product selection Selecting products is one way, and it is relatively safe. After all, there is real market data. But in my opinion, it will take a long time.
Product selection using big data (using software to select products) can only be based on third-party software + your own judgment. The risk is relatively high, but the cycle from decision to delivery and listing will be relatively short.
Next is my idea of product selection: I use software to select products and do market research. If I think a product is worth making, I will order a batch of goods. The quantity will not be large, but it will not be small. As for the issue of risk, I will not launch many new products at the same time, and no more than three at most (it is a small company and there is not much money to lose). In this way, even if I make a mistake in judgment, it will not hurt too much. Then I will constantly summarize my experience and pay more attention to the market. Believe in the process, and one day you will step on the dog shit.
Finally, I think the most important thing for starting your own business is the ability to get up again after falling down. Don’t be afraid of failure. Every time you fail, don’t let yourself gain nothing. At least remember this lesson and don’t let yourself fall into the vortex of self-doubt. I’ve been fascinated by Fanhua recently. To borrow a sentence from it: forget everything here and take the lesson away. Xiaoman Life • Shijiazhuang • 2024-01-26 10:39 There are risks in doing business. If you accept risks, accept failures, learn lessons, and keep growing within your ability, the future will be better and better. Only by improving yourself first can your life get better. I have read your analysis carefully and gained a lot. Thank you for sharing your experience!
Lulu Agree with: Come from the sea, Ruanxd 1. Which site should I choose when switching to FBA? Of course, it is recommended to start with North America, because your needs determine your direction: North America is the site with the lowest threshold for transformation or entry. Europe has high costs and strict compliance requirements. Japan's shipping costs are relatively high. Some normal products in North America are sensitive products in Japan and it is difficult to find a freight forwarder. North America has a low threshold and the largest volume, so the trial and error cost is lower for small and medium-sized sellers. 2. Confusion in product selection. How should we select products if we do FBA? Here you need to change your mindset. It is not because your product is shipped by yourself that the link exposure rate and visit volume are pitifully low. It is because the product itself is not good. So the key is actually product selection. If your product is good, you can get a lot of orders every day even if you ship by yourself. After all, you have been doing product distribution for so many years, and you should have accumulated some product intuition about the popularity of products in the entire market. This is very important. Data selection is to assist your judgment.
As long as you can learn how to use product selection software, you can use it, and you can understand the data analysis. However, not every product selected by software data will sell well, so it is important to develop your own product intuition, which comes from years of deep cultivation of categories and supply chains. If you are worried about the goods not being sold out, you can increase your sense of security by sending small batches and replenishing them in batches with a small number of test models.
When I wake up, the moon is bright and the breeze is intoxicating - the roses in the Windy City will never wither Agree with: Xiaoman's Life, Before I Met the Gods, fineyishun, 吙灬喍, I am Xinyue More » 1. Which site should I choose when switching to FBA?
North America is better, the market is large and stable, Japan has higher requirements for product quality, Europe has many and complex requirements, and the preparation work is long. Relatively speaking, North America is more suitable. Of course, if other sites have guides, it is another matter.
2. Confusion in product selection. How should we select products if we do FBA?
A small suggestion. We have done it before (first test the model by air shipping in small quantities) to make sure there is a relatively stable market order link before air or sea shipping for large-scale replenishment. Don't be too superstitious about big data selection. Now most data is transparent, and the software used by everyone is similar. If you can see it, in fact, everyone can see it. Don't blindly select products. It is the right way to go to market testing. Start with familiar categories, roughly calculate the profit margin, and start. Big data, without a keen sense of smell, the more data, the more confused you will be. Xiaoman Life • Shijiazhuang • 2024-01-17 10:03 What you said makes sense. The market is the one that tests real demand.
Fat_cr ab • Meizhou • 2024-02-23 18:01 It is safest to start with familiar products, at least you will have a good idea. If you are not sure about the selected products, you can put them on the shelves in FBM stores for testing first, and wait for data feedback before deciding whether to do FBA. For familiar products, it is recommended to make some differentiated designs. The low-cost one is to change the packaging, and the higher-cost one is to open a mold. You can decide whether to open a mold based on the profit margin. If you are not sure, send a batch of regular models to test first. If you can get stable orders, you can design new styles. At that time, you can consider the strategy of bringing in the old and the new according to the situation.
jinqukk Agree with: black2020, 未见神明时, Shary95, fineyishun, sayhitoS More » With a foundation and funds, it is not as difficult to transform as you think. As long as you abandon the idea of freeloading, it will be relatively fast. If you do not abandon the idea of freeloading and are stingy in making high-quality products, you will still fail.
As for product selection, you have been doing this for so many years, even if it is for distributing goods, there should be categories that you are relatively familiar with. Just focus on the categories you are familiar with. It is best not to cross categories. If you cross categories, you will have to pay a lot of tuition fees in the early stage.
If you want to make high-quality products, you need to open up your mind. Opening up your mind does not necessarily lead to success, but not opening up your mind will definitely lead to failure. Xiaoman Life • Shijiazhuang • 2024-01-16 13:52 Thanks for the suggestions. I feel that the transformation should still be done by combining FBM and FBA, otherwise you will lose more money if you switch to FBA.
jinqu kk • Guangzhou • 2024-02-23 10:25 @Xiao Man Life : Just based on what you said, you'd better not transform.
The mindset of wanting something for free and having everything can never be changed.
If you can’t open up the structure, there’s no point in talking about quality products.
It is certain that you will lose money in the early stages of FBA, even if you sell well.
You want to start making money with nothing but a blank link? Are you kidding?
gd mmcdh2022 • Taiwan • 2024-02-23 10:34 @jinqukk : After reading your reply, I suddenly thought of my own experience. In the second half of 2024, I suddenly had a brainwave and went back to my hometown to seek investment and start my own business. When I discussed the plan with those bosses, I said that I would spend money on advertising and giving away tests (referring to Vine) in the early stage to increase the weight first, and then make a profit after losing money for a few months. As a result, I was laughed at and asked why I would invest in you if you lose money at the beginning, and spend money to give away products for free? I was speechless instantly.
It has to be you kk • Wuxi • 2024-05-24 11:34 @Xiao Man Life : From all aspects of your personality, you are really not suitable for Amazon. You always want to get something for free, you are not open-minded, you are timid, and you always complain that it is difficult to do business and you can't make money. Since you know that your model is not working, you are unwilling to transform openly, you are thinking about this and that, and you are afraid of tigers in front and wolves behind. You are not suitable for starting a business. You will probably not be able to make it big and make a lot of money. It sounds bad but it is the truth. Think about it carefully, change your thinking, and open up your mind.
ze her • Changsha • 2024-05-28 11:36 @简单Michael : Most bosses have this kind of mentality. My husband works in Amazon operations. This year, he joined a company in Changsha that sells low-priced accessories. The accessories on the US site are booming. They lost a little in the early stage. The boss told him every day that they were losing money, and then he was fired.
There will always be bread - free time and good health Agree with: Fyyyyyyy , 踏海来 , Ruanxd , 空城已去 , tomsencen More » Product selection. I believe everyone knows some product selection dimensions, such as sales, competition, popularity trends, price, differentiation advantages, reviews, etc. But it is still not easy to select successful products. Asking various product selection ideas and development tools, in fact, what we most want in our hearts is for others to tell us which product to sell.
But that is impossible, it is equivalent to asking someone to give you their bank card and password. I have a trick, which may not be very ethical, but it is very useful. I have a friend who joined 6 companies in a short period of time, watched what they bought and how they promoted, remembered the stores and resigned. Then he started to monitor their stores every day, picked a company with the best product selection success rate, conducted a second survey of the market, and imitated their products. To be honest, he really made money.
Plant a tree - Plant a tree now Agree with: Guanshan Nanyue, Xiaoman's Life, Lisa123, RaymondLuke, weixi7940 more » Brother, don't think it's that difficult. The failure of an individual to succeed has nothing to do with the overall environment and economic situation. Every year, some Amazon companies are doing better and better, and many categories have new products.
At present, you should cultivate your inner strength, change your thinking, stop internal consumption, keep an empty cup mentality and continue to learn and output! The past is just a period of torment! fine yishun • Shenzhen • 2024-01-18 14:18 Yes!!! Optimism!!! Musk once said that he prefers optimists, pessimism is useless!!!
Wear two necklaces • Dongguan • 2024-02-24 16:30 Yes, even if the economy is bad, it does not affect the order placement. The more direct impact on the order placement is the micro-level things.
This handsome guy is so melancholy Agree with: rainco, 未见神明时, fineyishun, Kowloon City, passion makes a difference Some friends have been doing distribution. They will also send FBA to operate FBM for stable size orders, and then continue to distribute goods and do FBM. Start with the categories you are familiar with, and don't infringe on any category. Xiaoman Life • Shijiazhuang • 2024-01-16 13:55 Yes, if we distribute the products, we really need to avoid copyright infringement. If it weren’t for copyright infringement, we wouldn’t be in this situation!
Amazon is just a sideline - going further and further on the road of advertising research Agree from: Xiaoman Life, weixin65047 You can test the resources you have through FBM, and if feasible, send them to FBA. The financial pressure during the product selection and testing period will not be so great. Deise Ruomeng • China • 2024-01-17 18:09 I have been working on European sites for several years. Competition in Europe is indeed less, but now various certifications are required, and the initial investment is really large, especially in Germany and the UK, where competition is no less than that in the United States. It depends on yourself. Now I have also started working on the United States in my new company. I feel that the United States is still okay. It is easy to achieve a few dozen orders. Europe is a little more difficult, but it depends on your own products.
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