Amazon seller strategy: How to choose factory-type and trade-type products

Generally speaking, there are two types of Amazon sellers in China: factory sellers and trade sellers. The difference between the two seller groups is very obvious. Factory-type sellers have their own factories and have the ability to manufacture and produce products; while trading-type sellers do not have factories and have no ability to produce products themselves. They mainly rely on finding suitable factories to cooperate with to produce products. .

Product selection strategy for factory sellers

The advantage of factory-type sellers lies in product cost. Since they have their own production lines, their product costs are usually the lowest in the industry and they can achieve true “ex-factory prices.” However, the limitation of this kind of seller is that the product selection range is small and they can usually only produce around one or two product lines. Therefore, for factory-type sellers, the significance of product selection is more to confirm whether the products produced by their own factories can be sold on the Amazon platform.

The specific operation process is as follows:

• The first step is to log in to your Amazon account, find the search box in the upper right corner of the main backend page, enter the keyword “restricted products” and search.
• The second step is to select the search result and enter.
• The third step is to view the list of restricted products on the Amazon platform. Even if a product is included on the restricted list, it does not mean that it cannot be sold, as long as it meets certain conditions (such as packaging requirements, certification requirements, etc.).
• The fourth step is to learn more about the relevant requirements and check whether there are any products that are explicitly prohibited from sale.
• Finally, it is recommended to read the relevant regulations of restricted products in detail before deciding to use the Amazon platform to ensure compliance.

How to choose products for trading sellers

Trading sellers are not limited to fixed production lines and have greater flexibility in product selection, and can adjust product types according to market demand. Trade sellers usually have two product selection models: “quality-oriented” and “distribution-oriented”.

Boutique-oriented

Boutique sellers focus on selecting a small number of SKUs and purchasing and promoting them in large quantities. This method not only conforms to the recommendation model of the Amazon platform, but is also one of the ways to maximize the use of platform resources. However, the risk of this model is that once product selection or operation errors occur, a large amount of inventory may be accumulated, causing serious losses. Therefore, product selection and operation skills in the boutique model are particularly important.

Distribution-oriented

Distribution-type sellers emphasize the quantity and sales rate of products. In order to increase sales, such sellers will upload as many products as possible and focus on broad coverage within a certain market segment. For example, after selecting a subcategory such as women’s swimwear, use the batch loading tool to display it from multiple angles to increase the exposure opportunities of individual products. This strategy is especially suitable for small-language markets in Europe because of their small market size and relatively little competition.

Although the operation methods of distribution-type sellers have certain practicality, from a long-term development perspective, it is recommended to pay more attention to high-quality operations to achieve more stable growth.