From Taobao to Tmall, for cross-border retail exports, Chinese suppliers must have a brand concept. Some sellers are annoyed by being “sold to you”. Many traditional foreign trade companies, factories, and domestic e-commerce companies have poured into cross-border e-commerce. They simply opened a store on the platform, but found that there were too many sellers and a red sea of large-category products. .
As the competition among platform entities intensifies, more new platforms emerge, causing traffic costs to rise and the living environment to deteriorate. From three-no products to cost-effective brand products, the rules of the platform will also change in the future. As regulations become more stringent, extensive growth will turn into refined management.
Either obtain authorization and goods from brands, manufacturers, etc., and sell them on the platform as a self-operated seller, that is, authorized distribution; or create a private label (PrivateLabel) to obtain higher profits.
Among Amazon’s million-level sellers, 90% have more than two sales channels, and 56% of sellers have their own brands, of which selling private brands accounts for less than 30% of their overall sales. The largest number of sellers, reaching 27%; in addition, the sellers whose private brands account for 30%~70% and 70%~100% of the overall sales are 9% and 10% respectively; while the sellers whose sales are all from their own brands are Accounted for 9%. Familiar cases include the listing of Anker power supply, which started cross-border, and SheIn financing, which is known as China’s largest cross-border fast fashion. The process of establishing a brand does not happen overnight. It relies more on the accumulation of user reputation and ultimately relies on the brand to win.
However, this is an era of excess brands. In the face of strong European and American similar brands, the road to brand creation for China’s cross-border e-commerce will be extremely difficult, and most brand activities are just to supplement the product range.
At least, being prepared for trademark registration, building a brand (even a fake brand) and counter-selling, and protecting your own brand are the most official defensive measures on the Amazon platform to avoid being complained about infringement or selling fake products. goods to reduce the risk of others following suit and avoid being drawn into price wars. After Amazon brand registration, you will get the brand GCID code, which can be used to replace the UPC universal product code and EAN international item code.
The brand has obvious advantages in terms of price premium, repurchase rate, and sustainable operation. When selecting branded products, to create main product lines and popular products, sellers should use whatever resources they currently have on hand as their main product line and focus on building it, rather than just one shot and another location. By analyzing the product composition of gross profit and studying which products account for 80% of the total gross profit, then these products are the hot hits you need to create.
No matter the cost, create a hit product, especially on Amazon. In addition to relying on the brand’s own appeal, such products can be non-standardized and subjective products, and they are niche market products with high gross profit and relatively few competitors, and develop in the market gaps of specific user groups.
After choosing a popular product, you should go all out to promote it, analyze the profitability, click-through rate and conversion ability of the product, and the customer value of the single product, and finally bring continuous profits to the store through the popular product ability. Those with the resources and capabilities should also take the design quality route and go deep into the front end of the supply chain.
For example, we are also selling clothes. Due to the increase in obesity, the demand for plus sizes in Europe and the United States continues to increase, and styles and designs are in short supply (not simple large-size jeans, let alone selling sacks). In the eastern United States, More concentrated. Therefore, product selection, pricing, marketing, distribution and other aspects are related. When doing business in a diverse world, all factors such as region, culture, season, race, customs and so on must be understood.
Nowadays, clothing products are on the rise, and 3C products have been reduced to high-volume products, and profits have been lost; e-cigarettes and wigs once made huge profits, and a large number of sellers flocked to them, but now they are no longer prosperous. ;Home products will become the next Red Ocean.
Compared with 2012, the number of categories sold by Chinese sellers increased 87 times in 2015, and the best-selling Chinese products overseas are also constantly changing. Currently, many best-selling items are concentrated in tablets, smartphones, High-end, high-quality products with more technological content such as sweeping robots, Bluetooth headsets, and drones. Forerunners in the industry have proven that to do well in cross-border e-commerce, you must first make good products. Platform is not the only thing, but brand can make a career last.