Let me talk about the positive aspects of being Amazon first. First, Amazon is still in a period of rapid development and still has great potential and profits. Second, there are certain thresholds for cross-border e-commerce, and there is a certain industry concentration. It takes a lot of energy and time to get started. Third, because cross-border e-commerce is a global business, practitioners are required to keep an open mind and keenly accept the latest industry information. In addition to basic operating methods, you must understand some politics and economics, and you must let yourself continue to learn and learn for life. If you ask me what is the most positive aspect of cross-border e-commerce, then my answer must be the ability to continue learning. It made me more disciplined and broadened my horizons.
After talking about the positive side, we also have to calmly face some negative aspects. Increased competition has shortened the life cycle of some products, reduced profits, and even unfair competition, which has led to an increase in operating costs. We will explain to you the problem of being an Amazon from two aspects: the controllable subjective aspect and the not necessarily controllable objective aspect.
Most of the controllable subjective aspects are in operation. The first is selection. For example, you have chosen a seasonal product, but you have not grasped the rhythm of operation, or your operation ability is relatively weak. As a result, the summer passed, and there was a backlog of products that were very popular in those years. After paying the long-term storage fee for more than half a year, they couldn't sell them, so they had to pay Amazon to destroy the products. Or you chose a product with more complex functions, but the buyer couldn't figure out how to use it, and left you with a lot of bad reviews.
In addition to product selection, there are also operational errors in the background about discounts. There are many operations on discounts in the background, including unlimited discount codes for coupons, superimposition of priority discount codes, and so on. Now saying these operations may give you a headache, but there are also many mistakes that novices can make. To give the simplest example, you want to give the product a 10% discount, but the result is set to 90% off, which is a 10% discount. If you also forget to set the maximum purchase amount at the same time, and you sell products with high traffic and high value, then this loss will be very painful.
In addition, in terms of advertising, if you set a high budget, the money will be spent in a traffic peak, and the effect of the budget may not be achieved. Be sure to analyze your own advertising data every day, actively adjust and learn different ways of playing with different budgets, so as to save a lot of money.
Look again at the objective aspects that are not necessarily controllable.
The first is the rules of the platform, which include not only product safety and infringement invoices and certification categories, audit performance indicators, but also policy changes. We all know that Amazon is a platform that emphasizes the buyer experience and neglects the seller. For example, if you are complained by your peers or customers because of inconsistent description or infringement, your listing will most likely be suspended. Although there is room for appeal in the later stage, this breaks an operating rhythm. To give another example, the huge Amazon is not so perfect. Sometimes it will make miscalculations, and sometimes it will change the policy. If you don’t review it yourself, then this part of the money will be contributed to the platform.
The second aspect is that suppliers can have high-quality supplier resources, which is a very important advantage. Suppliers who have not experienced running-in in the market may have the following problems. The first one is the quality problem. The quality of the sample and the bulk product may be different, and the quality problem is discovered only after it is sent to the customer. At this time, the negative review will come. Therefore, it is best to sample the quality inspection by yourself in the early stage of cooperation. The second is the price issue. Some suppliers will suddenly increase the price when they see that the products you sell are better. The third is the out-of-stock problem. If it is suddenly out of stock at a critical period, it will lead to a drop in ranking. The fourth is a question of professional ethics, if some unethical suppliers will transfer your information to competitors. In addition, there are some different batches of products that have color differences, or cannot be delivered on time.
The third aspect is the logistics provider. Some logistics providers are not very professional in their business. They don’t know which categories and which countries cannot go, which leads to a dilemma for you or the timeliness cannot be guaranteed. Another example is playing with text routines, which leads to delays in storage during peak seasons. In the past, there was very little logistics or even directly discarding your goods.
Fourth, let’s talk about IP,
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The fifth aspect is the current national policy issues. Everyone should pay attention to issues such as customs detention, patents, exchange rate fluctuations, and VAT.
The last aspect is the malicious operation of competitors. If you affect or threaten its sales and rank very high, he may spend all your advertising expenses, or leave a bad review for buying things.
If you don't achieve particularly good sales or rankings, you get a bad review. First, reflect on whether there is any problem with the quality of your products. Of course, if you can achieve a particularly good ranking, you will have the strength to deal with these malicious operations.
For these hidden risks, there may be some objective existence, and we cannot change them, but there are actually many things that can be done. On the one hand, prevention is strengthened to minimize known risks. For example, carefully study the background settings to avoid low-level erroneous operations, such as finding multiple partners so that they can replace them in time if there is a problem. On the other hand, whether it is a platform or an operation, one must settle down and learn.
Before making a relatively large decision, you must accumulate enough industry information, and then think repeatedly based on your own situation to draw a conclusion. After making a decision, there is still a psychological preparation, that is, there is still a long way to proceed.