Annual sales of 8 billion! Chinese sellers make a fortune overseas with unpopular products | Cross-border headlines of the week

Annual sales of 8 billion,

Unpopular products are doing big business overseas

In the tide of globalization, more and more Chinese brands are shining in overseas markets with excellent products and precise market positioning. Even in the field of tool exports with a relatively small market space, there are Chinese brands writing their own sales myths.

This brand is VEVOR, a domestic tool brand that sells well around the world. According to FastMoss statistics, in the past 7 days, VEVOR has sold a total of 68,000 units in TikTok's US store, with sales exceeding US$3 million. Since it was launched in September 2023, the brand has generated sales of more than US$50 million.

Among them, VEVOR's star product, the retractable garden watering hose, performed particularly well and can be said to be an important revenue pillar of VEVOR. Data shows that the total sales volume of this product is nearly 40,000 units, with a total GMV of over US$2.7 million.

VEVOR's success is multifaceted. So far, VEVOR's products have served more than 10 million customers in more than 190 countries. On Amazon, many of VEVOR's products frequently appear on the category BS list, and one of its pneumatic tool hose reels is always ranked first on the BS list. In terms of financial data, VEVOR has been making great strides. In 2022 alone, its annual revenue soared by 4 billion yuan, and its global sales are estimated to exceed 8 billion yuan.

A mop makes the seller earn a fortune.

30 days to earn tens of millions of revenue

According to Kalodata, Schenley's steam mop is very popular, with a total sales of more than 3.15 million in the past 30 days. This is not its most impressive performance. In 2024, Schenley's steam mop also created a sales myth of more than 10 million in a single month, and won the top spot in TikTok's home appliance category rankings.

According to reports, this steam mop is a product carefully developed by Schenley for household cleaning needs. It is multifunctional and can meet all cleaning needs, whether it is a bathroom bathtub, stove, kitchen countertop or window, by simply replacing different accessories. Its powerful cleaning ability and convenient operation method quickly won the favor of consumers.

However, good products also need good marketing strategies to promote them. Schenley chose TikTok, a popular overseas social media platform, and worked with a number of mid- and low-end influencers to leverage the power of short videos and live broadcasts to promote the brand. This two-pronged strategy of "short videos + live broadcasts" has made Schenley's products known and loved by more overseas consumers.

13,000 hot-selling products were urgently recalled.

Big sales and heavy losses

Recently, the U.S. Consumer Product Safety Commission (CPSC) announced the recall of a shoe and boot dryer sold by OdorStop because the product has a fire hazard. In detail, the recalled products involve OdorStop shoe and boot dryers and deodorizers with model numbers OSOBSDD2 and OSOBSDD, which are equipped with high-power fans and 3-hour timers.

CPSC pointed out that the switch of the product's heating or ozone function is defective and may short-circuit, thus posing a fire hazard. In particular, since most of these products are used indoors, if left unattended, the fire may spread rapidly, increasing the risk.

For this product, CPSC recommends that consumers stop using it immediately and contact OdorStop for free repairs. OdorStop also proposes that OdorStop install new in-line fuses in the recalled devices to mitigate the fire hazard and will cover the shipping costs for the repairs.

It is understood that the product was sold on multiple platforms between December 2018 and October 2023, with a total of approximately 13,000 units sold at prices ranging from US$100 to US$130.

Amazon adjusts storage fees

Costs rise for MFN sellers

Recently, Amazon announced that it will adjust the existing warehouse and distribution service (AWD) rates, increase the basic rate, and launch two new discount rates. For sellers who ship their own goods, the overall change is an increase in costs, while for sellers using Amazon services, the overall cost has decreased.

Specifically, the new warehouse and distribution service rates will take effect from April 1, 2025. At that time, the storage fee of AWD's basic rate will remain unchanged at $0.48 per cubic foot per month; the handling fee will be split into two parts: the inbound handling fee and the outbound handling fee, both at $1.35 per box; and the transportation fee will increase to $1.15 per cubic foot.

The original integrated rate discount will be cancelled and replaced with two new preferential rate plans, aimed at encouraging sellers to use Amazon's official logistics services.

Amazon accused of copyright infringement

A $39 million fine

Recently, it was reported that the Delhi High Court imposed a fine on Amazon because Amazon India sold clothing of the same brand as the "Beverly Hills Polo Club" trademark, constituting trademark infringement. According to the judgment, Amazon needs to pay $39 million (about 3.4 billion Indian rupees) in compensation.

It is understood that the cause of the incident was that Lifestyle Equities CV filed a trademark infringement lawsuit against Amazon Technologies, Cloudtail India and other companies in 2020. The brand claimed that some clothing products sold by Amazon on the platform "use deceptively similar trademarks, infringing its registered BEVERLY HILLS POLO CLUB logo/device trademark."

At the time, the Indian High Court issued a temporary injunction prohibiting Amazon and other companies from using infringing logos and requiring them to remove infringing products. Later in 2023, the temporary injunction was confirmed and became an absolute injunction. Since then, Cloudtail India has failed to mediate with the brand and was ordered to compensate 20% of its revenue from infringing products, or 478,000 rupees. Amazon also complied with the court's injunction and agreed to remove any infringing product listings in the future.

*The above information is compiled from online resources