Is it better to do business on Amazon with a boutique model or a boutique model? [In-depth analysis]

There is a chain of contempt in the Amazon industry, that is, sellers who do boutique model despise sellers who do boutique model despise sellers who do wholesale model ; I used to think that sellers who do boutique model or brand model are more noble! But now I don’t think so, because business is about profitability, making money is enough, heroes don’t ask where they come from, and being able to make money from any insignificant thing is a success .

Whether you are a new seller or an old seller who wants to change your operating model , as long as you are still struggling with which Amazon operating model is suitable for you ; you might as well take a look at the topic that Maomao shared with you: "Is it better to do Amazon boutique model or boutique store model?"

A few days ago, a friend who is an Amazon seller shared with me the profitability of a company that not only operates in the boutique model, but also in the boutique model. That company has two departments, which are:

• Little Bee Precision Shop Department Situation:

The Little Bee Premium Shop department is a premium shop model under a secondary category (the market capacity is not very large).

The company's boutique store does not list all products , but also selects them, takes samples and tests them, and edits listings and finds designers to make pictures. The difference between it and Cheetah's boutique department is that it is not too obsessed with having obvious selling points in development, and does not pursue hits in operation. It operates in a Buddhist way.

The Little Bee Precision Store Department started in 2017 , and has a gross profit of RMB XXX million every month . Sales have been very stable.

The characteristic of the products of the Little Bee Jingpu department is that there are many of them. One account has about 20-30 products, and there may be 50-60 SKUs. There are no big hot-selling products, probably between a few and 50 orders; the advertising is relatively Buddhist, accounting for about 6-7%.

• Cheetah Boutique Department Situation:

Cheetah's boutique department focuses on a tertiary category, but the capacity of a single product is large and the unit price is also high, so it naturally adopts a boutique model; one account has less than 7 products , and some have only 2-3 products, so it adopts a blockbuster model.

During the peak season, the sales of Cheetah Boutique Department will exceed that of Little Bee Boutique Department, but the profit margin is much lower than that of Little Bee Boutique Department. The sales and profits of several products account for a large proportion. During the peak season, 100-200 orders can be placed in a day, and more than 1,000 orders can be placed in a day during the peak period.

But when the off-season came, the entire market fell severely, and the best products did not exceed 40 orders per day.

Therefore, the situation of Cheetah's boutique department is like riding a roller coaster . The peak season is over, and the ensuing returns, sales decline, advertising surge, profit decline and other problems are quite troublesome. The performance of Cheetah's boutique department is highly dependent on a single product and requires relatively high operational skills.

I wonder what you feel after reading the real case above?

Based on these real cases, Zhaodanmao provides the following analysis and conclusions for your reference:

① You must focus and specialize in one sub-category (it is best if the products are interrelated, which will be helpful in operation and promotion and save advertising costs). This can be done through long-term accumulation, and it is easier to create advantages and stable profits.

② Fine-tuning is prone to encounter infringement or monopoly or competition with the same style. Fine-tuning will definitely have a difficult future. The representative of deep-dive is fine-tuning, which is to concentrate on major tasks and invest a lot of energy. For example, innovative research can basically widen the gap between each other or distinguish everyone's styles.

③ Although the boutique model is the future trend of cross-border e-commerce, if the company does not have sufficient funds, Zhaodanmao suggests taking both paths at the same time. There are many operations in the industry that have not received any commission for several months, half a year or even longer; because boutique is really not as easy to promote as imagined, boutique has very high requirements for product and operation skills, and it is also possible to be ruthlessly eliminated by the market. For companies that do not have much accumulation, the risks are indeed unknown ; on the other hand, the elimination rate of Jingpu may be higher, but the requirements for product and operation skills are not that high. The important thing is to pass the market test more quickly, know whether it works or not, and make quick adjustments; those that stay and make stable profits can consider making them into boutiques.

④ When entering a new category, it is difficult to gain an advantage at the beginning. Your familiarity with the industry and the quality of supplier resources will reduce the competitiveness of your products. At this time, you need to have more choices, that is, more products to participate in the testing and market selection, and finally settle on some stable and profitable products.

In summary, Zhaodanmao believes that refined shopping and boutique products are not two mutually exclusive choices , but two different development stages of a company. At the beginning, you can choose the refined shopping model to quickly accumulate some stable and profitable products, and then increase sales volume and rankings through the promotion of boutique products. Subsequent products can also be continuously iterated and optimized on the basis of profitability to create more advantageous products and gradually build their own moat.