Amazon, do you still dare to expand into new categories at this time?

In the process of operating on Amazon, sellers often face various choices, among which whether to expand into new categories is a highly concerned issue.

1. Enlightenment of reverse thinking

Investment guru Warren Buffett's famous saying "Be fearful when others are greedy, and be greedy when others are fearful" is not only applicable to the stock market, but also has guiding significance in the field of cross-border e-commerce. At present, many sellers are taking a wait-and-see attitude towards expanding new categories, fearing that the market will be sluggish. However, this may be a good opportunity to "overtake on a curve".

2. Reasons why this is a good time to expand new categories

1. Reduced competition

As many sellers have withdrawn due to concerns about risks, the competitive pressure in some categories may be greatly reduced, which provides a broader development space for sellers who dare to try.

2. Lower entry costs

Although Amazon's costs are rising, the time and efficiency of launching new products will increase due to the reduction in the number of competitors. Sometimes, time is the biggest cost, and expanding new categories may have more advantages in terms of time cost.

3. Differentiation opportunities

When most sellers are repeating the same business model, sellers who dare to try new things are more likely to stand out and achieve differentiated competition by expanding into new categories.

3. Methods for expanding new categories

1. Considering time and financial costs

1. A well-funded team

• Give priority to time cost, choose new categories and products with profit margins, and consider entering with high average order value.

2. Teams with limited funds

• Give priority to reducing the cost of trial and error, start with low average order value, and use time costs in exchange for the accumulation of capital costs.

(II) Practical case - kitchen supplies category

Taking the kitchen supplies category as an example, if funds are limited, you can choose to enter the market with a low average order value (US$10-15), use a distribution model to test the product, place an initial order of 100-200 units, and keep the purchase cost within RMB 15.

4. Proceed with caution

Although opportunities may be hidden when others are fearful, there are still risks in expanding new categories. Sellers need to stay sober and do sufficient market research and risk assessment. Only in this way can they find their own "blue ocean market" in seemingly difficult times.

In short, in Amazon operations, expanding new categories is a double-edged sword. Sellers need to comprehensively consider their own situation and market environment and make prudent decisions in order to gain an advantage in the competition.

Today I will share with you the most comprehensive independent station product selection tutorial in history - 25 product selection methods