I have been doing cross-border e-commerce for ten years. From traditional B2B to current B2C, I have experienced each of the pain points of small cross-border sellers. Are you on the road to cross-border e-commerce also feel the same?
There are rules in the cross-border e-commerce market. We can't expect the rules to take care of ourselves, expect pie in the sky, or feel lucky and rewarding. Fantasy is a disease that can be cured.
To do Amazon cross-border e-commerce, we must uphold a correct mentality. It is a kind of entrepreneurship, and entrepreneurship will have risks. We must avoid risks as much as possible. Within the scope that we can bear, try and error with the least cost to get the greatest return.
Let me talk about the pain points of Amazon's small sellers, welcome to add.
The first is difficult selection
When Amazon’s small sellers started, they were not familiar with the rules of the platform, and they had no idea about the categories and products they wanted to do. They were also entangled in whether to do FBM or FBA, and they didn’t know much about effective product selection methods. .
The real situation of many small sellers is that after the Amazon store is opened, the monthly rent of the store is normally withheld, but the selection of products has not progressed, and the store level is downgraded from the professional sales plan to the personal sales plan.
The confusion in product selection stems from the lack of product development capabilities. What we lack most at Amazon is the artisan spirit of product development. Sometimes looking at this product is OK, that product is OK, and the reverse is also applicable, neither of this nor that. Tangled, repeatedly entangled, struggling.
The first step to be an Amazon is to learn the thinking mode of product development. As a product development manager, you must learn to use data to analyze products, do competitive environment analysis, and do product life cycle research. After making up for the shortcomings of our selection, our Amazon road may go smoother.
The second is the lack of operating methods
Although Amazon's cross-border e-commerce is not as complicated as domestic e-commerce and the competition is so fierce, Amazon's operating threshold is still quite high.
I have contacted a lot of cross-border e-commerce bosses. I don’t know much about Amazon’s operations. I only know that the industry is very popular and I don’t know the logic behind it. Blindly expanding, forming a team, and operating improperly, it will be too much to bear for a few months.
The scientific selection of products is to test our operational capabilities. New product promotion methods and rhythms, on-site marketing tools and CPC advertisements, etc., all require us to continue to learn and optimize.
The third hidden cost is high
The cost of being an Amazon is actually quite high, and you may not notice some hidden costs. Asset-light entrepreneurship is something I highly respect. Amazon is not actually an asset-light entrepreneurship. It requires a lot of time, capital, and resources.
At this time, as small sellers, we must weigh our own advantages and invest our limited resources on the most profitable products and categories, instead of constantly trial and error.
Amazon's cross-border e-commerce industry has barriers to entry, and you can't just enter it casually. Reduce the time cost of learning, master the Amazon FBA practical operation process as quickly as possible, and avoid stepping on unnecessary pits as much as possible.
To open a store on Amazon, it is necessary to register a business license, annual agency billing fees, various operating expenses of the company, expenses for forming a team, monthly rent for opening a store on Amazon, warehousing fees, first-haul logistics fees, marketing and promotion fees, trademarks Registration fees, etc., these are things we need to consider and face.
The fourth lack of funds
Many small sellers have a low starting point, shortage of funds, and sufficient cash flow, to a large extent determine whether our Amazon road can go further.
It is undeniable that some sellers are slowly making up with an initial capital of 10,000 to 20,000, and slowly expanding, but the current competitive environment has changed, and sufficient funds are also a very critical factor for success.
The shortage of funds will affect the breadth and depth of our selection. If you don't have enough budget to see a good product, you will stop. The intensity of marketing and promotion cannot keep up, the inventory cannot be replenished in time, and the stock is out of stock frequently, which will cause great harm to the product listing. The return of funds is slow, the turnover pressure is high, and the advertising expenditure accounts for too much of the sales, and the return is not even visible. I worked so hard to get hundreds of orders and found that it is very common to owe Amazon several hundred dollars. Some friends even rely on borrowing to do Amazon. When the monthly repayment day comes, they are desperate and can only use the loan to support the loan.
Fifth poor return on investment
What I am talking about is that this poor return on investment is suitable for many novice sellers, because at the beginning they did not find the products and methods that are suitable for them to continue to make profits at this stage, and it is inevitable to lose money. Amazon’s entrepreneurial success also follows the 28 principles. Whether you succeed or fail is the result of comprehensive factors. We must learn to seek development within our control.
I made ten products, none of them were successful, and I spent a lot of time and money on trial and error, and I fell into an endless loop. At this time, my mentality might collapse. If our self-confidence is hit, our enthusiasm for doing things will be seriously damaged, and the results will not be satisfactory.
The above mentioned the pain points of so many small sellers doing Amazon, not that we have to give up if we have difficulties. Any industry has its own threshold. We can't blame ourselves because we have difficulties, or give up food because of choking. What we have to do is to clearly understand our own strengths and weaknesses, check for omissions, make up for our shortcomings, and make our Amazon cross-border e-commerce smooth!
Learning to bear pain is sometimes a kind of growth!