Recently, the seller Mars shared his faucet failure case in 2018. Xiao V reviewed it from it, summed up some ideas, and hoped to be a mentor for everyone.

Mars started Amazon in 2018 and went to Shenzhen to participate in training. The training teacher at the time suggested that he start with the resources around him and find a reliable supply chain to make products with less effort. Since Mars' hometown is Anxi, rattan and iron handicrafts and plumbing products are relatively mature, and there are also people in the family who are engaged in the sales of plumbing products, so the selection of kitchen faucets is selected . Under the debuffs that the product is not understood, the data analysis is not done well, the target of the bidding product is wrong, and the stocking estimate is wrong , it ends with a loss of 800,000.

From Mars's elaboration, Xiao V believes that the following points are pits that novices need to avoid when doing Amazon :

01 Do not understand the product, the procurement cost is too high

Mars actually doesn't understand the faucet market, and the data analysis is not in place. The material of the faucet is directly selected the most expensive, and the price of the supplier he found is also very high. The average price is about 220. For him, he does not even have 200,000. The small seller can only get the goods in small batches, and the cost of opening the mold alone makes him aching. Looking back now, in fact, I can choose the most expensive and best product without first coming up. Although the quality is good, but my financial resources are limited, you must know that if you want to make this faucet, you need at least 2 million investment.

02The operating experience is too shallow, and the profit calculation is not in place

Since he just started Amazon, Mars didn't know how to correctly calculate the net profit of the product, including deducting the return rate and the cost of advertising. He could only calculate the gross profit superficially. When the gross profit was only 20 US dollars, he did not do it well. Advertising budget, under the reality of high cost and low conversion rate, the marginal cost gradually increases and decreases, while the net profit gradually decreases.

03 Competitors make mistakes in the benchmarking, and directly look for the list one

Newborn calves are not afraid of tigers, and Mars' faucet products are directly sold to such big sellers as Biaobangyi and Moen. Looking back now, Mars laughed and said that he was "looking for death". The faucet of the same material is about 100 yuan cheaper than the faucet that sells.

And the cost limits the pricing. At this point, Mars, which is too expensive, can't beat these big sales. People can reduce the dimensionality of Mars' faucet products by reducing the price for a while.

04 High repurchase rate, misjudging consumer preferences

Due to the high quality of the product, Mars has a particularly high repurchase rate, and the new store has traffic benefits, so orders were issued very quickly during that time, which gave Mars an illusion that this is a fairy product. This led to his stocking up to 600,000 before the peak season, and it took him two years to clear this batch of goods, plus storage fees and labor, a total loss of 800,000.

Mars' experience tells us that when you are an Amazon, you should try your best to make products that match your strength and funds. Especially in the selection of competing products, small sellers should try their best to go for products with relatively low sales and relatively expensive prices, so that the profit margin is relatively high, and it is very difficult to differentiate when making plumbing products. All of its differentiation is a function Sexual differences, then to achieve this functional differentiation, it will cost a lot of money to open molds, which is a very test of the seller's own strength.