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Since 2022, in an environment where the global market demand has shrunk due to the intensified inflation crisis and the deteriorating economic situation, various data have shown that the consumption desire and consumption capacity of global consumers have been declining. At the same time, the wheel of industry development is still rolling forward. In the context of global consumption downgrade, some people are actively exploring breakthroughs, some have successfully broken through and achieved new growth, but some are complacent and are ruthlessly eliminated by the market. Amazon's home appliance brand files for bankruptcy
It is learned that according to foreign media reports, Amazon's well-known home appliance brand Instant Brands recently filed for bankruptcy protection with the Houston court. According to its bankruptcy filing, Instant Brands will be allowed to continue operating as it sheds debt and other unaffordable costs, giving it "time and flexibility to continue ongoing discussions with all financial stakeholders in an effort to reach a consensus that will improve the company's financial condition." ▲ The picture comes from the official website of Instant Brands Currently, Instant Brands will continue to operate as usual during the bankruptcy process, thanks to $132.5 million in financing. But it is worth noting that the company's financial situation is still facing a major crisis. It is learned that Instant Brands was founded in 2009. To date, its brand sales network has covered 23 countries and regions. Its classic product, Instant Pot , was widely praised when it was launched, and even set an amazing sales record of 300,000 pots sold out during Amazon Prime Day . It was also observed that to this day, a product of Instant Pot still ranks high on the Best Seller list of Amazon's home appliance category, with 162,300 reviews, most of which are positive. ▲ The picture comes from Amazon US
In the filing for bankruptcy protection, Instant Brands attributed the bankruptcy to tightening credit conditions and rising interest rates , but multiple sources indicate that in addition to this, the continued decline in sales of Instant Brands products in recent years is also one of the main reasons. According to foreign media reports, Instant Brands' sales have been declining since 2020, plummeting from US$758 million to US$344 million in 2022. S&P Global data also shows that Instant Brands' sales fell by about 22% year-on-year in the first quarter of 2023. And S&P also mentioned in its recent credit rating report that this is the seventh consecutive quarter that Instant Brands' sales have declined. It is understood that Instant Brands' total debt has exceeded US$500 million . Some industry insiders analyzed that as a technology brand, Instant Brands has been focusing on the development of a single product area (Instant Pot), which has made it a leader in this product area, but it has also led to Instant Brands' slow growth, reduced profits, and is very susceptible to market fluctuations . Overall, from its amazing sales record on Amazon in the past to its current bankruptcy filing, the decline of Instant Brands is still regrettable. However, under the fatal impact of weak global demand, Instant Brands' sales decline is not an isolated case.
According to a survey, as of June 2023, compared with the same period in 2022, the proportion of sellers who saw a decrease in order volume was as high as nearly 70%, among which 26.7% of sellers even saw a 30%-50% decrease in order volume. In addition, survey data also showed that as of June 2023, only 16.8% of revenue and profits reached the expected targets, 23% of sellers’ profits were lower than expected, and 60% of sellers failed to achieve both targets.
In the seller communication group, some Amazon sellers often discuss the reasons for the slump in order volume this year . On the one hand, affected by the continued high inflation and weak economic trend, consumer shopping expenditures have become conservative and the sales of e-commerce products have slowed down. On the other hand, with the increase in cross-border entrants, competition has become increasingly fierce, and traffic grabbing and product promotion are difficult. In addition to peer competition on the seller's platform, in recent years, the emergence of Temu, SHEIN and other platforms has also had a certain impact on the traffic growth of mainstream platforms such as Amazon. However, it is worth noting that some sellers have pointed out that Prime Day is approaching, and the current decline in sales may be due to consumers being in a "consumption cooling-off period" before the big promotion. When the big promotion arrives, sellers on the Amazon platform may usher in a "feast of explosive orders." It is also learned that according to a survey by Skai, an omnichannel marketing platform, inflation has not curbed the enthusiasm of American shoppers for Prime Day. Among the 1,000 consumers surveyed by Skai, 95% of respondents plan to browse or purchase goods during Prime Day this year. Due to inflation, although 14% of the respondents said that their spending on Prime Day this year will be less than last year, 27% of the respondents plan to spend more on Prime Day this year. For this reason, there is no doubt that for most sellers, the top priority is still to prepare for the upcoming Prime Day. In the previous article "2023 Prime Day is coming! Do these things and easily make a big splash!", some additional measures that sellers can take are listed for reference: 1. Understand the warehousing deadline and available inventory; Note: US FBA sellers must deliver their product inventory to the US FBA logistics center before June 15 . 2. Start Prime Day marketing two weeks in advance. 3. Review customer reviews and product listings in advance. How are all sellers preparing for Prime Day at this stage? Welcome to scan the QR code below and reply with the keyword [Prime Day] to join the 2023 Prime Day Sprint & Order Sharing Group and have a pleasant exchange with more peers.
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