What we can see recently is a drop in the number of new registered sellers from China due to various reasons such as COVID-19 lockdowns, supply chain issues, business disruptions for sellers and Amazon FBA inventory restrictions.

But a decrease in the number does not mean a decrease in the proportion. As of March 22, 2022, Amazon's newly added Chinese registered sellers accounted for 75% of all new sellers, basically the same as the data in 2021.

Obviously, for Amazon's "cultivation", Chinese sellers are still "leading the way".

Can Amazon still do it in 2022?

First of all, in terms of the overall environment, in the next few years, the general trend of shifting from offline to online will not change. Opening an Amazon store can be regarded as an “asset-light” investment compared to launching offline stores that cost hundreds of thousands of dollars .

Based on years of experience in e-commerce, Amazon has a relatively complete e-commerce system, such as the FBA logistics model, and its own ability to resist risks is also relatively strong.

Secondly, from the perspective of Amazon's own business structure, since its listing in 1997, Amazon's amazing revenue growth is obvious to all.

According to Bloomberg’s consensus recently, as Amazon’s main front, the North American e-commerce penetration rate will increase by 1 percentage point in 2022, driving the overall market to grow by about 15%. During the same period, the continuous growth of overseas markets, where revenue is only 30% of North American revenue, will also positively support Amazon's own performance.

"In recent years, Amazon's investment promotion in China has been very active." Many industry insiders said, "Amazon holds 1,000 investment promotion meetings in China every year, an average of three a day, and every weekend."

In the face of the Chinese market after the title crisis, Amazon is also trying to give Chinese sellers on the global supply side "regain confidence" through greater policy preferences.

As recently as March, Amazon announced incentives worth up to $50,000 for new sellers selling on Amazon-designated sites (the U.S., five European countries, and Japan).

The specific offers are as follows:

(Picture /Amazon New Seller Starter Pack, Source: Amazon Global Store)

This policy involves a wide range of projects, and also allows qualified sellers to see new development opportunities.

Pain points and difficulties

Amazon has always paid attention to a "survival of the fittest" rule. Although there is an opportunity, it does not mean that the opportunity will be equally spread to every seller.

With the increasing number of sellers entering the market, higher requirements are also put forward for new entrepreneurs.

A seller told Hugo Cross-border, "In the early stage of the business, due to financial embarrassment, there were too few people and more tasks, ranging from image processing, copywriting generation, packaging and posting, to logistics and payment."

"Especially in 2021, in the environment where raw materials and logistics are flying together, just one logistics will make a mess, not to mention that in the price war of life and death, the store can still make a profit."

And for domestic sellers, multi-account operation is the norm, and multi-account can diversify risks and coordinate team management. However, in order to prevent sellers from repeatedly distributing and selling the same products, Amazon officials will use severe penalties to stabilize buyers’ spending power, that is, to determine associations. Therefore, how to find an effective method to prevent association has also become a difficult problem for sellers.

There are also violations that are of great concern to sellers. Amazon prohibits manipulating keywords to improve search rankings or incentivize customer searches to appear as natural behaviors to influence search results. Therefore, if the title or details of products listed on the shelves contain illegal words, they will also receive severe penalties.

In Shenzhen, where cross-border sellers gather, Amazon’s operating salaries generally reach the salary level of /13 or 15. Although it is not a sky-high price, it is not realistic for small and micro sellers who are cash-strapped to try to improve their operational capabilities by recruiting professional operation teams.

At the moment when the competition is getting more and more fierce, if the extensive operation is adopted, it is tantamount to giving up. Compared with mature sellers with professional operation teams, novice sellers often prefer to use intelligent management tools to solve problems related to store operations.

Seller practical experience

"As a small and micro seller with insufficient funds, the team has a total of 2-3 people. Due to its small size, it is not a brand seller, so I can only put products on the shelves by moving products from domestic supply platforms. There are many and miscellaneous products, and a single product Image processing, listing translation, product pricing and other preliminary preparations have encountered major problems, not to mention post-order processing and consideration of input-output ratios and other issues.”

In this case, you can choose from many Amazon ERP products on the market, and choose an intelligent management system that suits you based on your actual situation.

The benefits are of course many.

In terms of multi-platform and multi-method collection, it can connect to many mainstream supply networks, which can help itself to realize one-click product handling and upload to Amazon.

Secondly, for online product management, it is possible to change the price, inventory, etc. of online products in the store in batches, and realize the batch removal of unqualified products after testing, which can improve the health of the store.

A variety of operational tools are provided, which greatly improves human efficiency:

1. Unlimited free UPC (Uniform Commodity Code) generation, reducing input costs;

2. Free beauty image processing, which can realize one-click white background pictures and one-click translation of pictures and texts, saving a lot of time and art costs;

3. Automatic picture generation, video generation can be achieved without professional video editors, which can be used for video uploading in stores and video files on A+ pages.

Newbie sellers who are in a hurry, you can try a small knife first.

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