Christmas sweaters are priced under $10? In addition to Temu, another platform is also selling them!

Preface:

11.29 After seeing the news that Xiyin was launched in the United States, I went to Xiyin’s official website and found that the price of Xiyin was also very competitive.

Take Christmas sweaters as an example. The cost price is about 30-50CNY, and most front-end sales are below 10 USD. During Amazon Black Friday, most similar FBA products are in the range of 20-25 USD, and the FBM sales are also between 12-18 USD. In addition, Shein offers free shipping for orders over 29 USD, and Amazon offers free shipping for orders over 35 USD, so it is not entirely Duoduo’s fault that Amazon is not selling well.
 
The extreme price is a high degree of exploitation of the domestic links, and a dimensionality reduction attack on small and medium-sized sellers. Then I remembered what Mr. Huang said: "J people, J yourself, J industry"

"Wonderful reply"

Small Coke

Agree with: NachoWu, please call me Xiu, weixin65047, Li Mosquito Repellent, liminiscan more »

Amazon's model is completely different from shein and temu. Shein and temu launched a full-hosting model, which saves merchants a lot of operating energy and operating costs in the middle links. Therefore, the platform can take advantage of the low price advantage of this full-hosting model to compete with the big platform Amazon.

But what about Amazon? With a 15% commission, more than 20% FBA delivery fee, a high advertising rate (10-30%) and various fees, sellers can’t lower their prices. As a result, if consumers are a little more diligent in shopping around, they will lose a lot of customers.

If Amazon sticks to its current operating model without making any adjustments, the market share will be even more fiercely divided in the long run. I hope the platform can open its eyes and make clear adjustments.

Nightmare at dawn. • Shenzhen • 2023-12-01 16:32

Without mentioning anything else, just talking about this 15%, domestic platforms can beat Amazon's prices to the point where it can't stand it. It depends on whether there will be anti-dumping. If nothing is done for a long time, with Pinduoduo's high-speed development model, Amazon will indeed lose many customers.

Prais eU • Shenzhen • 2023-12-06 17:30

This is also the fundamental problem. Everyone's business model is different. Pinduoduo and TEMU have been able to stand out precisely because of this difference. The possibility of Taobao and Amazon making big changes is almost zero.

Yue B Xiao Li Fei Mai • Argentina • 4 days ago

When TEMU becomes big enough, Amazon will be powerless to stop it. People will become accustomed to it and will become reliant on it. If Amazon messes with it, it will cause resistance from them.

Anonymous Sellers

Agree from: Youzaizaiupup, yingjia1, GW17816116490, Xinyue

I've been using SHEIN for the first time for less than a month. I feel the same as what everyone says. The buyers may not be professional enough. Some of them cut the price to less than half of your cost, while others are just OK.

Its product page only has a title and specifications, but no detailed description, so it is difficult to judge a product based on this information alone.

The same picture, the product may actually be Liu Yifei and Feng Jie.

More importantly, the normal price only has a 10%-20%-30% profit, but once there is an event, you will be asked to take a 30%-40% discount. If you don’t participate, there will be no traffic. It’s not right to participate or not to participate…

The benefits of full trusteeship are also obvious. If there is an order, we will pack the goods. If there is no order, we will control the inventory. Everything will be fine!

lovelyerica

Amazon has already made adjustments to its future commissions. I wonder if it is to allow small businesses to make more profits? After all, the price is not enough for TEMU SHEIN. The same model sells for 11.99 in SHEIN, but 29.99 on Amazon. And it is a clothing product, which is a major product of TEMU SHEIN.

Effective Date:
January 15, 2024 (US time)

Amazon will reduce sales commissions for the following products:
For apparel items priced below $15, the sales commission will be reduced from 17% to 5%.
For clothing items priced between $15 and $20, the sales commission will be reduced from 17% to 10%.
Sales commission for other products remains unchanged.

With this change, new sellers in the apparel category with sales priced below $20 will actually pay very low commissions, or may even pay no commissions at all, by taking advantage of reduced fees and the new seller onboarding package (5% off the first $1 million in sales)!

Yuntao Dream Pen • Wuxi • 2023-12-06 18:02

Only the commission for clothing was reduced, and the delivery fee and warehousing fee increased. It seems to be to fight against TEMU. I don't think it makes much sense.

KokoroHaru

Agree from: liangloveq , GW17816116490

Have you all forgotten how Taobao competed with eBay when it first started?
Have you forgotten how Amazon China suspended its services?
So Taobao and Jingdong actually died from their own advantages in the past (bushi)

However, domestic advantages and national conditions cannot be directly applied to foreign countries.
Most people's thoughts can be divided into two categories:
1. Sooner or later, sanctions will be imposed
2. Eat P and reduce inflation.

But putting aside other things, can a company of Amazon's size just sit there and watch you eat up all its market share? If so, invite me to join you when you burn incense.

Anonymous user

Agree from: cheese yogurt, Baiyun.com, Quan Zhilong, weixin45946, finally found the avatar more »

At the national level, the success or failure of Amazon sellers may not really be that important. What the country needs is to export production capacity to feed factories and workers, especially at a time when domestic demand has been falling again and again and has not shown any signs of improvement, while foreign demand has also begun to decline in the face of inflation. The country will support whoever can sell products, maintain the industry, and feed the vast majority of people.

Snake Skin Pig • Shenzhen • 2023-12-05 17:59

Yes, overproduction is not a one- or two-day thing. If it cannot be consumed internally, it can only be exported. It just so happens that temu and shein are such large quantities that can satisfy your hunger.

Anyone

Agree from: GW17816116490

The official attitude towards SHEIN and TEMU is positive. In this situation, we can only try our best to survive.

(Photo from China Newsweek)

Mini sells hard - five years of operation, working alone, welcome to communicate

Agree from: Hahaha 100 times, rainco, Yi Xiaoyang, NachoWu, Yingying Yingying Yinyin More»

Damn it, if we continue like this, the platform will make all the money, so what can we earn? It was said that Duoduo was in this spiral, but the price didn't go back up afterwards. I'm afraid the platform will become more and more aggressive in squeezing sellers and supply chains.

asb kkt • Shenzhen • 2023-11-30 17:24

It’s still early, at least in the 3-5 year dimension.

Port hos • Guangzhou • 2023-12-01 11:31

When most of the small and medium-sized sellers can no longer continue to operate, the big sellers can raise prices. After all, it is the investors' money, otherwise why would they go public?

Alic e11223 • Shenzhen • 2023-12-02 15:43

After this Black Friday and Cyber ​​Monday, I feel like I can’t go on any longer. These platforms are not good enough.

JDLLW 129 • Shenzhen • 2023-12-06 13:50

The platform uses economies of scale to grab the market at low prices. The platform is also spending money and being ruthless to sellers. Only by optimizing costs and efficiency can the bankrupt sellers provide users with the ultimate cost-effectiveness. This is a bit similar to live streaming. The top anchors are also constantly squeezing the profits of the supply chain. From the perspective of individual profits, it is indeed less, but full hosting is based on economies of scale. Only when the economies of scale work can we make money.

Just so boring

Agree with: Kind99, Yi Xiaoyang, ZGYjuaner123, Xingshimingyuezuiqingfeng, NachoWu more »

Therefore, low prices are the basis for these platforms to compete with Amazon. Otherwise, what can they use to compete with Amazon? If it weren’t for the low prices, I guess foreigners wouldn’t even look at them.

Port hos • Guangzhou • 2023-12-01 11:30

There are people who seek bargains in every country, so price wars are really useful. It is enough for Amazon to earn commissions and advertising fees, and it does not need to worry about the buyers' profits at all.

Yuntao Dream Pen • Wuxi • 2023-12-03 17:22

Different standpoints lead to different views on things. The country has currently expressed its support for the platform. It is necessary to reduce inventory and enter the US market. Once they develop, they will gradually increase profits. Let's wait and see.

JDLL W129 • Shenzhen • 2023-12-06 13:00

The same model is hard to surpass, others have already achieved the extreme, change the model, it will be more interesting to play