12,000 orders per month! Net profit of 1.3 billion in one year! Another Amazon hit takes off...

Everyone says that 2020 is difficult, but cross-border e-commerce sales have made a lot of money.

On the evening of January 25 , Giant Star Technology released its 2020 annual performance forecast. During the reporting period, the net profit attributable to shareholders of the listed company was as high as 1.253 billion to 1.343 billion , an increase of 40% to 50% over the same period last year.

Public information shows that Hangzhou Giant Technology Co., Ltd. (Greater Star Technology) is one of the leading companies in the domestic tool and hardware industry with the largest scale, most advanced technology and strongest channel advantages . It is also the largest hand tool company in Asia and ranks among the top six in the world .

Since 2015, Giant Star Technology has started the cross-border e-commerce journey through Amazon's " Global Store " , hoping to leverage Amazon's advantages, market resources and good reputation to build cross-border e-commerce into a new business growth point for the company. As a traditional star enterprise, Giant Star has no shortage of products .

On Amazon, Giantstar Technology's own brands include Wordpro , Everbrite , Pony and other hand tool brands, with many best-selling items. The main products include hand tools, laser measuring instruments, and industrial storage cabinets , which are mainly used in home maintenance, construction engineering, vehicle maintenance, robotics and automation, personal protection and other fields.

Its hand tool and power tool brand Wordpro ​​is comparable in quality to similar products from large building material supermarket brands such as Walmart, Home Depot , and Lowe 's , but the price is half of that . It has received five stars from customers on the Amazon platform , and its garden tools and woodworking tools sales on the Amazon platform have increased by more than 150% .

In 2020, while some small and medium-sized tool companies in the world were liquidated due to cash flow problems, Giant Star was able to make a net profit of 1.3 billion yuan against the trend. The main reasons are as follows:

A traditional foreign trade company is actively entering Amazon and keeping up with the hot-selling products (epidemic prevention materials), which is worth learning from for many people.

Coincidentally, these cross-border e-commerce sales have also taken off.

Recently, Ecovacs , a company specializing in home service robots, released an announcement of its expected increase in annual performance in 2020. The data is not much, but it is enough to make sellers envious.

Judging from the data given by Ecovacs in the above figure, it is expected that the net profit attributable to shareholders of the listed company will reach RMB 590 million to RMB 630 million in 2020. Compared with over RMB 120 million in the same period last year, it has increased by about RMB 470 million to RMB 510 million. In other words, Ecovacs' net profit in 2020 has increased by about 4 times !

Not only does Ecovacs earn a lot , it also receives strong support from the government. From 2020 to date, it has received nearly 65.48 million yuan in subsidies alone.

It is understood that Ecovacs only entered the Amazon US site in 2016 , which is relatively late. Why is Ecovacs still making so much money ?

The fundamental reason is that the product selection is good . According to data monitored by a certain elf, the Ecovacs brand has a total of 21 ASINs on Amazon US in the past 30 days. Among them, the best-selling product is a sweeping robot , which sold 2,099 sets in the past month and had sales of US$ 387,500 (approximately RMB 2.5 million) .

The most prominent product of the Tineco brand is the cleaning robot . In the past month, the ASIN with the highest sales volume had 12,288 orders , with a total amount of US$ 4.0689 million (approximately RMB 26 million) .

I don't need to say much about how popular sweeping robots are. It is said that big sellers such as Aoji and Wantuo are also planning to launch them. So, when it comes to Amazon, products are still king .

Lejia Holdings , which was once famous for the "fighting" between its chairman and fund manager, also released its 2020 report card. Last year, the company's net profit attributable to its parent company will reach 210 million yuan to 230 million yuan, a year-on-year increase of 233.44%-265.19% .

Regarding the reasons for the performance growth, Leggett pointed out that it was mainly due to the continuous increase in the company's linear drive product market share and independent brand business last year, and the company's health consumer product penetration rate continued to rise.

According to reports, last year's cross-border e-commerce sales reached 1.03 billion yuan, a year-on-year increase of 197% ; independent site sales accounted for 27% of cross-border e-commerce sales. In addition, the company's strategy of using 2B customers in the commercial market and its own brand in the home retail market has achieved results in brand promotion, and orders for ergonomic products have continued to increase.

In fact, not only Juxing and Ecovacs, but also the entire home furnishing industry experienced a big boom last year when the COVID-19 pandemic swept the world. For example, the American outdoor home furnishing brand Outer received tens of millions of dollars in Series A financing , and its sales increased more than 10 times in 2020 .

In addition, Xiamen's cross-border e-commerce giant Jihong Technology also achieved an annual profit of 320 million yuan , with a net profit growth of more than 150% , thanks to the outbreak of epidemic prevention materials and the "stay-at-home economy."

Although the experience of successful sales may not be replicated, it is definitely worth learning from for all sellers. I wish you all huge profits in 2021.