It has been the end of 2024, whether the factory can do Amazon cross-border e-commerce
Some sellers think it is incredible to transform the factory into cross-border e-commerce, but in fact, the factory has the strength and potential to enter cross-border e-commerce!
According to Amazon's real data, factory sellers have much higher product quality indicators than other types of sellers. On Amazon, factory sellers produce eight times as many new ASIN sales as non-factory sellers. It can be seen that the transformation of factories into cross-border e-commerce is promising!
For factories, it is important to choose the right operating model first. There are four common types of operations: supplying to other online sellers, operating on behalf of others, joint operations, and independent operations.
Among them, the most suitable for factory sellers is the autonomous operation mode. Through autonomous operation, the whole process of the factory is controllable, which not only ensures the strategic goal of long-term development, but also has the possibility of achieving higher profits.
Next, I will take you to in-depth analysis of the core elements of independent operation, and share the specific methods of factory sellers in actual operation!
First: Build a professional cross-border operation team according to the scale of the business
Factory sellers fall into three broad categories:
Leading enterprises: large enterprises/listed companies in the traditional sense or the top ten companies in the industry/annual revenue of more than 600 million yuan
Medium-sized enterprises: 300 employees or more, and the operating income of 30 million yuan or more
Small factory: 20 employees or more, and the operating income of 3 million yuan or more
Generally speaking,
· Leading enterprises are suitable to fully develop cross-border e-commerce
· Medium-sized enterprises are suitable for steady investment
· Small factories are suitable for testing cross-border sea
Regardless of the type of plant, a professional cross-border operation team is essential. Because cross-border e-commerce is mainly for C-end consumers, the operation idea is not the same as traditional foreign trade, professional team can make the factory less detours, from 0-1 quickly through the early stage of transformation.
Team staffing usually includes: account operation personnel, graphic design, after-sales, internal cooperation personnel, team leaders, supply chain coordination personnel, etc. Among them, account operation, after-sales and internal cooperation personnel are important and necessary for all kinds of factories.
Factories of different sizes can adjust their team structure appropriately according to the size of the business.
The second is the selection of products: master the selection of ideas, select potential explosive products
After the team is set up, the factory seller can choose the product. You can master the selection thinking from the three dimensions of market, product and pricing.
From the market dimension: insight into market demand and competition
Understand the online growth potential and competition of product categories in destination countries based on your own supply chain. For example, the market capacity, annual growth rate, penetration of third-party sellers in recent years, whether it has seasonal characteristics, etc., so as to determine the potential subcategories and find the opportunity to access the field.
From product dimension: looking for differences, mining product opportunities
After understanding the market demand, sellers need to make differences in product development and expand opportunities.
From the pricing dimension: scientific pricing, reasonable setting of sales targets
Pricing can refer to the category price distribution range, combined with brand and product positioning, reasonable and scientific setting of price and sales targets. In this process, sellers can use the seller platform revenue calculator to assess costs, select distribution channels, and reasonably estimate sales through the selection compass and set sales targets to determine the quantity of stock.
Amazon provides two free selection tools to help sellers tap potential good products and insight into subdivided track business opportunities!
· Opportunity Detector: a creative product selection tool to discover the real demand of overseas consumers for new products.
· Selection compass: a practical tool to provide data indicators of target categories and consumer purchase preferences.
Where to go: Go to the Amazon seller platform and click on "Growth > Lead Detector" to further explore the use of the tool and grasp the first-hand consumer demand.
Third, to create a flexible supply chain, reduce costs and increase efficiency, enhance competitiveness
After determining the selection, the next step is product production! Different from the traditional mass-production model, e-commerce emphasizes flexible supply chains. Through more extreme costs, more reasonable inventory, more efficient timeliness, and relatively good quality, factory sellers can obtain more profit opportunities throughout the product life cycle.
Next, let's take a look at how factory sellers can build flexible supply chains from the above four aspects:
· Reduce production costs: Adjust production volume and raw material procurement to meet the needs of cross-border e-commerce in small batches and multiple frequency, and control production costs.
· Ensure inventory efficiency: Use sales data to predict production, cooperate with Amazon tools to optimize inventory, and balance out of stock risks and storage costs.
· Improve end-to-end timeliness: Adapt to small-batch multi-frequency production mode, adopt efficient logistics to improve end-to-end timeliness and cope with order fluctuations.
Ensure product quality: get feedback directly from end consumers to facilitate product iteration. Sellers need to pay attention to quality control to avoid bad reviews affecting sales.
Fourth: targeted selection of logistics solutions, maintenance of inventory
Logistics and inventory management is also a crucial part of the factory transformation! At present, Amazon has three main cross-border logistics methods:
FBA model: After the product is shipped to an Amazon warehouse, Amazon takes over delivery, warehousing, returns and refurbishment services. High efficiency, low cost, save worry and effort, suitable for most goods.
FBA+ Overseas warehouse mode: Combining the advantages of FBA with the rapid replenishment of overseas warehouses, suitable for seasonal products. For example, down jackets in winter and swimsuits in summer.
MFN+ Overseas warehouse: Self-delivery combined with overseas warehouse, suitable for oversized/dangerous goods or goods requiring special storage. For example, furniture, energy storage, electric bicycles.
Sellers can choose logistics plans according to actual factors, and don't forget to pay attention to several key indicators to maintain inventory health. For example,
Inventory Performance Indicator (IPI) : An IPI score determines inventory capacity limits.
Overage inventory: If the inventory is more than 180 days old, Amazon will charge an "overage inventory surcharge".
Sales Weeks (WOC) : It directly affects ASIN's sales performance, and it is recommended to maintain 4 to 8 weeks of sales inventory so that customers can receive your products as soon as possible.
Fifth: operation and brand building strategy; Continue to optimize Listing, obtain multi-channel traffic, and adhere to long-term principles
In the process of transformation, effective operational methods can help increase sales, and brand building gives products and sellers a deeper level of market recognition. The two complement each other and jointly promote the long-term success of factory sellers! Among them, Listing optimization, traffic acquisition, and brand building are worthy of attention.
Fully understand consumers, competitive products and their own advantages, continue to optimize Listing (product details page)
Correct and complete Listing can attract certain traffic and promote conversion, and its traffic and order volume will be 22% and 9.8% higher than incomplete Listing, and it can also improve consumers' shopping experience. To judge whether Listing is good enough, Amazon has a set of scoring criteria, that is, Listing scoring table. The higher the score, the more complete the Listing is and the more it meets the needs of consumers.
Factory sellers can improve their Listing score by optimizing their listing in the following three ways:
· In-depth understanding of local consumer needs.
· Understand competitors' products.
· Integrate selling points into Listing by taking advantage of their own products.
Obtain traffic through multiple channels, improve exposure, and promote transformation
Now that you know how to optimize listings, it's time to get more traffic! Traffic can be divided into two categories: in-station traffic and out-station traffic.
· In-site traffic refers to traffic from within the Amazon site, which mainly consists of natural traffic, paid traffic and promotional traffic;
Off-site traffic comes from other non-Amazon channels.
To capture in-site traffic, sellers can:
· Increase natural traffic by carefully selecting products, optimizing product information, and using appropriate keywords and categories.
· Get paid traffic through advertising,
Attract promotional traffic by participating in Amazon's various promotions, such as Prime Day, Fall Promotions, and Black Friday.
To get off-site traffic, sellers can:
· Obtained through search engine optimization and social media marketing.
· Through Amazon DSP project, sellers can accurately advertise to target users, forming a traffic closed loop.
Finally, it is to open the brand idea and layout for long-term development.
In addition, sellers can expand their cross-border business through Amazon Enterprise Purchase, reaching Amazon's more than 6 million high-quality corporate and institutional buyers around the world. Amazon enterprise purchase provides a wealth of B-side operation tools (such as Amazon bulk sales service, inquiry quotation, enterprise commodity price/quantity discount, etc.), helping factory sellers to expand B2B business, gold diggers to develop a new blue ocean!
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