Some people say that this year's Amazon sellers seem to have returned to rationality.
Last year, I still earned life and death, all kinds of floor spirals, this year I drew my sword and looked around, only to find that I was the only one left in the whole category. Many sellers lamented that compared to last year, the competition on Amazon is less intense this year. They said that after withdrawing from the involution, they also had more time to think about the future development direction, as well as polishing products and researching the market.
At any time, for sellers, products are the core competitiveness. Opportunities are reserved for those who are prepared. During this period, it is particularly important for sellers to find products that are suitable for them, and that are competitive and have market potential. At the same time, you can have more advantages and initiative in the next time when the swords face each other by holding the advantageous products.
Now in Europe and the United States, the market for shoes, apparel and accessories is growing rapidly under the stimulus of the epidemic, and in the United States, these three types of products will still be the three carriages driving the development of the cross-border e-commerce industry in the next five years, so there will be some product opportunities. . In the short term, relevant data shows that with the relaxation of epidemic restrictions in Europe and the United States, there will be a wave of travel fever in summer, and sellers of outdoor or travel products can prepare for it.
Draw your sword and look around without any competition, this year is not so much
It is said that laymen watch the fun, and experts watch the doorway. Many people who want to step into the door of cross-border e-commerce simply see that this is an online business of selling goods, and it is not difficult to operate. Coupled with the propaganda of some leek-cutting agencies, they all believe that you can earn US dollars when you get started, and you will reach the peak of life from then on. Without real thinking, maybe what you see is what others want you to see, or maybe the survivors are biased.
This scramble to intrude peaked early last year. From bank executives, 985 top students, returnees, to aunties selling fans downstairs, they are all scrambling to get on this highland.
But before they could gain a firm footing, the overhaul of the platform came suddenly, and many sellers suffered losses. In addition, it is inevitable that more people will intensify the competition, so the surviving sellers are caught in a crazy involution, and everyone has a low price spiral.
However, everything has two sides. On the other hand, after last year’s turmoil, as some sellers were struck out, the fierce competition on the platform has slowed down, and the competition has returned to rationality.
Not long ago, more than one seller reported that this year is not so introverted, and the rationality of running away is returning. As some people leave the market in awe, the market environment has been purified, and there are many fewer limit spirals at every turn, or one cabinet brush, one The "Wu three cabinets" operation is the "Wu three cabinets" operation , such as the delivery of the cabinet and the instant kill of one cabinet .
And sellers who have survived that difficult period have also received a surprise: many competitors have been boiled away. A seller who is still on the field even said that he is the only one left in the entire similar product, and according to the previous fierce competition, he suddenly felt a sense of daze.
Natural competition is not completely absent, but according to feedback from other sellers, it is generally much better than last year. In the process, some sellers have given up low-price competition and made profits by raising prices.
People in the industry know that in addition to the low price of the floor, the soaring advertising costs also hit sellers last year. However, some sellers recently said that the bidding for advertising words has also dropped. In addition, the activity of users closely related to single volume is also picking up.
Therefore, judging from the current attitude of sellers, many people also expressed that they are more confident this year than last year.
Of course, the phenomenon of gradually returning to rationality and weakening involution does not exist in all categories. As far as I know, this phenomenon is more concentrated in the categories of 3C, household and office supplies, which is basically consistent with the categories impacted by the title wave. In other categories, there is feedback from sellers, and now there are many people who are 90% off. But even then, competition in these categories isn't as intense as it was last year.
All of the above are undoubtedly providing a signal to sellers: the opportunity is here, hurry up and take this opportunity to polish yourself and occupy the market. If you want to take an advantage and a favorable position in the market, and understand people's consumption habits and market trends, it is an essential homework for sellers.
Shoes and accessories will rule the online market in the United States for the next 5 years
Judging from the current trend, the import policies of overseas countries will continue to be tightened, and the platform will gradually move closer to standardization. Now that cross-border e-commerce has passed the period of huge profits, it is inevitable that the competition between sellers will increase in the future.
Fortunately, the purchase of offline physical stores has shifted to online, the online shopping group has expanded, and the cake has become larger.
According to a report , under the influence of the new crown epidemic, the e-commerce sales revenue of top European online retailers increased by nearly 40% year-on-year in 2020, of which the United Kingdom maintained its leading position in the entire European e-commerce market, with a year-on-year increase of more than 30%. Its B2C e-commerce market share will reach nearly one-third of retail sales by 2021, and sales are expected to rank third globally after China and the United States.
After the outbreak, consumer behavior has changed rapidly, and consumers from different countries have different purchasing preferences. However, an in-depth study cited by a survey report found that in most European markets, clothing, shoes and accessories, and electronics were generally the top categories for online shopping in 2020. In the UK, for example, in 2020, on average, more than half of respondents bought clothing, shoes and accessories online.
This feature is also reflected in the US market. According to Technavio's latest market analysis report, from 2021 to 2026, the online retail market share in the United States is expected to grow by $460.13 billion , and the market's growth momentum will accelerate at a compound annual growth rate of 11.64%. Among them, growing seasonal and holiday sales are one of the key drivers for the growth of its online retail market. Notably, apparel, footwear and accessories, consumer electronics, computer hardware and toys were the product categories that saw the biggest growth during the holiday season.
When it comes to the cross-border e-commerce clothing industry, the first thing that comes to mind is SHEIN. In fact, not only SHEIN, PatPat, full volume and full speed, these brands out of the circle in recent years are basically concentrated in the field of clothing. Some of them cut into the clothing market from different categories such as fast fashion and women's clothing, while others cut into the clothing market from different categories such as children's clothing and sports outdoor.
Their achievements are also obvious to all. For example, SHEIN, the pride of China's cross-border e- commerce, Reuters once said that in 2021, SHEIN's sales will reach 15.7 billion US dollars. These dark horses that suddenly rushed out even shook the status of European and American fashion giants such as ZARA and H&M.
In addition, the shoe and apparel seller is silent, with revenue of 2.3 billion yuan last year , and launched the listing plan in June of the same year. If the listing is successful, it will become the first cross-border shoe and apparel stock. In terms of GMV generated in North America in 2020, Zibuyu ranked first among all platform sellers in China's cross-border B2C e-commerce apparel and footwear market, accounting for 0.5% of the overall market (232.4 billion).
In fact, clothing, footwear and accessories have low product value and low delivery and return risks, so they have historically been the category that many sellers choose to sell. In particular, clothing is the leader in cross-border e-commerce retail. Today, clothing is one of the best categories on some platforms. For example, in October last year , an Amazon seller revealed that clothing has taken over home furnishing and become Amazon's largest category.
In this case, many sellers will think that these three categories have become a red ocean, and the competition is fierce, and entering the market is tantamount to suicide.
In fact, footwear and accessories is a big market and it's growing all the time. As far as the United States is concerned, in 2019, the e-commerce GMV of the footwear and accessories industry alone exceeded 100 billion US dollars, and this number is expected to double by 2024. From a global market perspective, this figure is expected to reach $756 billion by 2022. Looking at clothing alone, in 2021, Kantar Consulting stated that the global clothing market will grow at an annual rate of 3.9%, and the market value will increase by 64 billion US dollars in five years.
Moreover, the epidemic has increased the penetration rate of e-commerce in the international market, so there are still significant opportunities for footwear and accessories in the future, and sellers can seize business opportunities from the apparel, footwear and accessories segments. However, the category of clothing is not so standard, and it is not easy to make. If the seller has just laid out, he can choose a style that is relatively standard to test the water, such as shirts, T-shirts, etc. And footwear can pay attention to the direction of sports trends. Today, thin and simple sports shoes are very popular among consumers. The competition of accessories is much fiercer than the first two categories, but in many markets it is the fastest growing among the three. For example, in the United States, from 2016 to 2020, the compound annual growth rate of accessories exceeded 21%, but only 15~17% for shoes and clothing.
The clothing market has a tradition of selling spring clothes in winter and summer clothes in spring. While it's still spring in the northern hemisphere, Google Trends data shows that summer clothing is on the rise.
The popularity of summer supplies is on the rise, and the demand for travel products is strong
In fact, not only clothing, according to seller feedback, the popularity of other summer products is also on the rise.
When it comes to summer, portable swimming pools and fans are the evergreens of summer supplies over the years, but this summer travel supplies will have even more surprising performances.
As we all know, Europeans and Americans like to travel and bask in the sun. After experiencing the long-term restrictions of the new crown virus, summer is coming again, and their hearts that yearn for freedom can't be trapped.
Late last year, Jungle Scout data showed that 46 percent of Americans said travel would be a top priority in 2022, and many had already made travel plans.
Recently, U.S. booking sites including Vrbo, Hopper and KAYAK have reported that demand for leisure travel in spring and summer has risen as restrictions on the new crown pneumonia epidemic are eased.
Earlier this month, Vrbo said in a statement: “In 2022, the rush to book summer homes has accelerated further.” The vacation rental booking platform reported that demand for properties had already surpassed 15% last summer.
AirDNA, which analyzes the short-term rental market, is tracking the performance of tens of thousands of properties a day from vacation rental companies Airbnb and Vrbo. "We're seeing very strong bookings for spring break and a very strong start to the summer," said Jamie Lane, its vice president.
We know that the Russian-Ukrainian conflict has caused global oil prices to skyrocket, and airlines have passed this cost on to customers, but from the current feedback, people seem to be completely ignoring travel costs. U.S. airlines including Delta Air Lines, United Airlines Holdings Inc and American Airlines this week reported a strong rebound in travel demand after brief swings caused by a variant of the coronavirus in Omikjon.
It can be seen that for Europeans and Americans, the desire to flee is stronger than concerns about rising costs and a surge in new coronavirus cases. In fact, a Google Trends search for "travel" in the U.S. shows that it has been at a high level for the past 12 months. This also proves that during the epidemic, they always wanted to go out and have a look. In related topics, searches related to travel bans in India and the United States rose by 4,850%, indicating that they are very sensitive to news related to hindering travel.
However, it is worth noting that compared with previous years, there have been some changes in the travel destinations of Americans this year. The flow of people to European countries has declined, and more people have turned to Mexico, Central America and the Caribbean.
Now, destinations long closed to most travelers, including Australia, the Philippines and Bali, have begun to reopen. And airlines have been gradually adding old routes and expanding new ones. It is foreseeable that more people will travel this year. Passenger numbers this year are expected to be 150 percent of last year's, according to official data from IATA (International Air Transport Association), a group of nearly 300 airlines.
Of course, in order to avoid the congested air routes, some people also choose to travel by car, or take a short trip in an RV.
This travel craze is sure to drive some product sales up. The first is packing. No matter where you go, you need to pack some necessities. At this time, you need to use luggage, wash bags, and cosmetic bags. The second is electronic appliances, including hair dryers, power banks, electric razors, international travel adapters, and luggage scales. The third is RV and camping, including tarps, RV shower heads, sleeping bags, folding chairs, tents, outdoor dining tables, beach chairs, etc. The fifth is automotive supplies, including car mobile phone chargers, car mobile phone holders, and first aid kits including flashlights, signal guns and other tools. Six is other, including passport protectors, towels, luggage tags, etc. Of course, you must dress delicately when you go out for a trip, and good-looking and handsome summer clothes are essential.
Google Trends data shows that the search popularity of "Beach chair", which has been silent for nearly 4 months since the end of October last year, has gradually increased in the United States since mid-February this year. At the same time, searches related to the topic "beach chair rental" rose by 4,300%.
With social media as the entrance, sales are gradually rising, and the popular manufacturing machine TiTok cannot be ignored
According to data released by eMarketer, in the US e-commerce market in 2021, sales through social media are expected to increase by 35.8% to $36.62 billion.
Today, the pattern of independent stations, platforms, and social media has basically taken shape, and TiTok, which has emerged as a new force, is destined to be the leader. Google Trends data shows that since 2019, the global search popularity of "TiTok" has risen rapidly, and related topics are also soaring.
If when it was first launched, sellers simply regarded it as an ordinary social media, then after several products exploded on it one after another, they should realize that it should not be underestimated.
TiTok short video planting has developed very rapidly. It is not difficult to observe that there are two hashtags on TiTok that have been viewed at a high level and are still rapidly accumulating. One is #amazonfinds ( found on Amazon ) and the other is #tiktokmademebuyit (I bought it because of TikTok). Pre-press queries show that the two tags have generated 17.8 billion and 10 billion pageviews, respectively.
"tiktokmademebuyit", as the name suggests, is a video posted by users after they are planted and purchased on TikTok. Under this topic, there are related videos ranging from light bulbs, kettles, and dolls to mobile phones and watches. An out-of-the-box video about a floating light bulb just released recently received 5.6 million likes. Don’t underestimate these videos, as they have a high chance of making your product “inadvertently” go viral and get a big boost in sales.
Even if the videos are posted by strangers, people still have a high level of trust in such recommendations. A survey data shows that in 2020, more than 21% of the 1,068 Germans surveyed said that they had purchased one of the products recommended above. Plus, social media makes people more "FOMO" (fear of missing out). When we see videos of many other people buying the same product and recommending it, we quickly become afraid that if we don't own the product, we're missing out.
Now some sellers who are attracting traffic from TikTok are taking advantage of this phenomenon. On the one hand by collecting the products known from the videos into one place. On the other hand, with stores and offers, awaken the FOMO of buyers.
I believe that sellers are also convinced of TiTok’s ability to grow grass. After all, since yoga pants, many products on Amazon have been popularized by TikTok, and the sales of some related sellers have also soared rapidly.
The most trending posts on the #amazonfinds hashtag right now include pet groomers (5.1 million views), physical keyboards (720 views), pet light balls (13.2 million views). Currently, chateaublanche's video about pet light balls is one of the last welcome posts under the hashtag.
According to the 2021 data from Sailing to the Sea , the current global scale of pet food is 91.1 billion US dollars, and the sales of pet products in the US market are as high as 4.54 billion US dollars. According to Common Thread Collective statistics, pet food has the largest pet market share in the United States, up to 36%.
If sellers want to capture TikTok’s traffic, they need to understand the platform and its user characteristics. Generally speaking, compared with social media such as Twitter and Instagram, young users stay on TikTok for the longest time, and the user stickiness is high. From February 19 to March 24, 2021, a Piper Sandler survey of 7,000 teens shows that TikTok is now the second most-used social media app among teens. In addition, TikTok has gathered a large number of Gen Z, has a unique user base, and has little overlap with other social media, and they are more keen to shop and share.