In fact, whether it is too late to enter a certain industry is a common problem. Before entering a new industry, everyone will think about it, and Amazon, which has experienced explosive growth, is no exception. The question on Google about whether it is too late to be Amazon is asked every year. Below I collected some related issues to discuss.
The first one is that the competition for Amazon is too fierce now. The second is that I heard that five or six years ago, as long as you uploaded products casually, you could lie down and make money. Now there is no such good thing. Can this thing still be done? The third is, can small sellers issue orders without relying on swiping orders? The fourth is that I have been waiting and watching for too long, and now it is getting more and more difficult for me to do it, and I feel that I have missed the opportunity. The fifth is that I heard that the rules of the platform are getting stricter and the number of loopholes is decreasing day by day. I am worried that it is easier to die accounts. The sixth is whether the threshold for individuals to be an Amazon is higher now? Too much money is too risky.I think there is still a chance to do Amazon now. We will analyze it from two aspects: objective market data and subjective personal situation.
First, start with objective industry data. The first is the growing proportion of online shopping. In 2018, U.S. online spending was $517.36 billion, a 15% increase from $449.88 billion in the same period last year. E-commerce took a growing share of the retail market in 2018, accounting for 14.3 percent of total retail sales last year, up from 12.9 percent in 2017 and 11.6 percent in 2016. What's more, e-commerce sales accounted for more than half of all retail sales growth, or 51.9%, the largest share of growth in online shopping purchases since 2008.
The second is Amazon's dominance of online shopping. Among the top ten companies with a share of online retail in the United States in 2019, Amazon ranked first with 47%. The second-ranked eBay only has 6.1%, and the third-ranked Wal-Mart has 4.6%. The famous Apple only ranked fourth with 3.8%. In 2019, Amazon's e-commerce business will grow by 20.4% to $282.52 billion. Amazon now captures 5.1% of the entire U.S. retail market.
The third is Amazon's brand value. Among the top ten most valuable brands in the world in 2019, Amazon ranked first with a brand value of 315.5 billion US dollars. Ranked second and third are Apple and Google, with US$309.5 billion and US$309 billion, respectively. What needs to be mentioned here is that in 2018, Amazon's ranking was only 52, but in 2019 it has jumped to the first position.
The fourth is the rapidly growing number of Amazon buyers. In 2017, there were 300 million active buyer accounts across the Amazon platform. By 2019, there will be more than 100 million Prime members on the Amazon US site alone, and this number is still increasing every day. Prime members are premium customers who are willing to pay an extra $119 per year to shop repeatedly on Amazon. The average spend per prime member is around $1,200, twice the purchasing power of an unsubscribed prime member.
The fifth is the soaring market sales. From 2016 to 2019, Amazon’s U.S. marketplace sales grew from $91.55 billion to $229.96 billion. In 2017, Amazon's third-party market sales reached 129.45 billion US dollars, and the market sales have surpassed the company's direct sales business. The sixth item is the FBA business that still has development potential.
Although the Amazon FBA business has been in development for a few years, it still has a lot of potential to grow. As of December 2018, usage data for the FBA business among top-selling sellers on the Amazon marketplace shows that 73% of sellers in the US were found to use FBA in the most recent reporting period, and in Australia FBA was only launched at the end of February 2018 , by the end of the year, it had reached a 33% adoption rate among top sellers.
Next, let's talk about the subjective aspect. On the one hand, it really takes a lot of luck to be able to enter a particularly profitable industry at the very beginning. On the other hand, because the competition has gradually become fierce when I entered the industry, I was forced to study hard and continue to explore, but the road became wider and wider.
So what kind of person is too late to be an Amazon Seller?The first type is people who want to make quick money. Now it is difficult to make quick money on Amazon. I see a lot of people who sell ERP and let everyone do the distribution model. This is about the same probability as buying a lottery ticket.
The second is someone who already has a full-time job and just wants to use Amazon as a part-time job. Personally speaking, it is still possible to devote yourself to it at this stage, but it still requires a lot of energy, and there is too much industry knowledge to learn. You have to look at the products in the store you already have, and choose New products, just to do a part-time job, the energy is very limited.
The third type is people who just want to rely on black technology to do Amazon. Amazon's annual investment in it technology research and development is about 13.6 billion US dollars, which is also the first in the world. Now that we have passed the rapid development stage of turning a blind eye and turning a blind eye, I have seen too much of the tragic end of black technology. In fact, Amazon has too many legal means of operation.
The fourth type is people who don't like to study and don't take things seriously. One of the reasons why the cross-border e-commerce industry is exciting is that if you invest in it and study diligently, you will find that there are so many things to play in an industry, and you will continue to improve, see new results, and feel a sense of accomplishment On the contrary, everything has an opposing force. Even if you don't suddenly degenerate and stand still, you will continue to regress. This kind of similar quality is the foundation of doing a good job in every industry, so I won't expand it here.
Okay, now we understand the industry data and what kind of people it is really late to be Amazon. Next, let's answer the six common questions mentioned at the beginning.The first one is that the competition on Amazon is too fierce now, because the number of sellers on Amazon has increased sharply in recent years, but through the data in the first section, we also know that a piece of cake is still enough. In addition, survival of the fittest is the law of survival. If you clearly know what you should do, you still have a great chance.
In fact, both entities and e-commerce platforms are very competitive. Malicious competition about peers will indeed appear. For example, you grabbed someone else's best seller ranking and rushed to the top 3 or top 5 in the category. If you are still a novice on the rise, spend more time and energy on your own product quality and operation work, and don't push the responsibility to the competition as soon as you encounter a bad review. When you really reach this ranking, you will have the strength and ability to deal with this problem.
The second question is can this thing still be done? Every industry has an initial period, but you may not be able to see this industry at that time.The third question is, doesn’t Amazon rely on black technology to make orders? Now that the platform policy is so strict, can we small sellers still issue orders without the conditions to engage in black technology? Here you can refer to the above. Let me add a few more words, in fact, the platform's control over black technology is good for small and medium-sized sellers. Why? Because there are many factory-type sellers who have financial strength, supply advantages, and black technology advantages over us. On the contrary, everyone is equal now, and the shops that have been brushed up have been closed. Platform rules are opportunities for small and medium-sized sellers with refined operations.
The fourth problem is that we wait and see for too long, and feel that we have missed the golden period. Don’t always hold on to sunk costs. You can also understand the situation of the industry in the past few years, and then combine your own actual situation. If you want to do it or not, you should make an early decision to avoid internal friction of hesitation and anxiety.
The fifth question is that I heard that the rules of the platform are getting stricter and the number of loopholes is decreasing day by day. I am worried that it is more likely to cause dead accounts. In fact, formal operations are not so easy to kill accounts. One thing I want to say is that it is very important to choose a long-term and stable overseas proxy IP. I choose
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The sixth question is whether the threshold for personal Amazon is higher now? If there are too many funds and too many risks, I worry that I will not be able to bear them. The most obvious part of the threshold increase is that the degree of competition has increased, which has made product selection more difficult, and operating costs and logistics costs have also increased. You can refer to our previous content, how much start-up capital is needed for an individual to do Amazon, find out the cost, and see if it is affordable for you.