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How to detect Amazon risk control points? How to prevent association of buyer numbers?
10/25/2022
Amazon New Product Promotion Program (primary version)
Amazon New Product Promotion Program (primary version)
10/25/2022

The sales growth rate exceeds 50%, and hundreds of orders are issued every day! How does this seller make money on Amazon?

10/25/2022
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The sales growth rate exceeds 50%, and hundreds of orders are issued every day! How does this seller make money on Amazon?

"Our product has been ranked outside the top 100 half a year ago, and now it has become the Top 20 on Amazon Australia . It only took half a year, and the sales growth rate has remained above 50% !

Similarly, within just one year of entering the Middle East station, we have also achieved good results with a sales growth of over 50% and a profit margin of over 40% ! "Mentioning the brand's dazzling achievements on Amazon's new site, Bai Jie, director of cross-border e-commerce operations at Romoss (hereinafter referred to as Romoss), is very proud.

As an innovative technology brand that designs and sells smart power products in China, Roma's products cover three categories of power supplies, car chargers and adapters, and holds a number of patents. Its domestic development has entered a mature and stable state.

However, Romans is not only satisfied with the status quo, but chose to enter overseas to seek breakthroughs, set up shop in Amazon to expand overseas business, and successively joined mature sites such as Amazon's US station and Japan station. Amazon Australia is officially open to Chinese sellers. Romans submitted the application for the first time and became the first seller of Amazon Australia. Finally, Romans joined the Amazon Middle East station. Unique insights into product selection ideas, compliance measures and logistics options have made Romas a great success on Amazon's new site .

Roman Shi Baijie

First of all, we especially trust Amazon, which opened the new site to Chinese sellers based on extensive market research . Compared with other mature and complete sites, the brand-new site is a unified starting line for sellers and has more development opportunities. No matter what brand you are, on the new site, making a good product is the first priority.

We also attach great importance to the development of the new site. In order to better develop the business of the Australian site, our professional market personnel go deep into the local area to collect and analyze local market data to understand the habits and preferences of local consumers. As far as we know, the consumption habits of Australians are similar to those of Europe and the United States. The overall consumer group is younger and prefers products with a strong sense of technology and fashion. But at the same time, there will be some differences. For example, for a certain word on the product details page, there may be differences in the preferences of consumers in Europe, America and Australia.

In the Middle East station, due to low VAT, low logistics costs, low FBA (Fulfillment by Amazon) fees, and the product pricing that can be slightly higher than other sites, the profit margin is higher than other sites. The profit margin of European and American sites is about 20%, which is considered very good, but our profit margin in the Middle East site can basically reach more than 40%.

Amazon Global Selling

Australian Station: The Australian Station with off-season features can bring sellers the unique advantage of "an annual hot season" . Australia is located in the southern hemisphere. If sellers have deployed sites such as Europe, America and Japan, they can just complement each other's sales throughout the year. In addition, the Australian station also has its own peak season. In addition to Black Friday and Cyber ​​Monday, the end of the fiscal year in June is also an opportunity for sellers to get a good harvest at the Australian station!

Middle East Station: The per capita GDP of the Middle East ranks among the top in the world, and the overall purchasing power is strong. The per capita GDP of the UAE is nearly 70,000 US dollars, which is about 7 times that of China's per capita GDP1 . Local consumers are receptive to higher-priced products. For sellers, compared with other sites, they can obtain higher profits in the Middle East.

Roman Shi Baijie

The first question to look at is who is the opposite. Compared with the US station, the traffic of the Australian station is indeed not large enough due to population restrictions, but among the local e-commerce websites, Amazon is not inferior . When we first entered the Australian station, because there was no way to do CPC (pay-per-click advertising), it did make advertising promotion a bit difficult to a certain extent. However, later on, we firmly established our products, coupled with close cooperation with our account managers, and used some local websites or media to channel traffic off the site, and our business quickly grew . Now that the advertisements in the Australian station have been opened one after another, don't worry!

During important holidays such as Ramadan and White Friday, which are unique to the Middle East , all categories will participate in promotions. We advertise through social networks, and on White Friday last year, sales were almost 10 times higher than usual. On the European and American sites, with the same investment in advertising costs, it is already good to have a 2-3 times increase.

Amazon Global Selling

AUSTRALIA: So far , Amazon is the second most visited retail site in Australia2 , and the overall trend continues to rise. According to the survey, local Australian consumers like to refer to some recommended websites outside the station, such as OZBargin, etc., and attract more consumers to Amazon through content recommendation and user drainage on the website. At the same time, Amazon's on-site marketing tools such as SP and DEAL have been launched one after another last year. By grasping both inside and outside the site, the conversion rate of products can be further improved.

Middle East Station: The predecessor of the Middle East UAE Station is SOUQ, which was established in 2005. It is the leading e-commerce website in the Middle East and now covers 7 countries including the UAE. The Middle East has high network coverage, with Saudi Arabia having an 85% Internet penetration rate and the United Arab Emirates as high as 96% 3 . The monthly page views of the Middle East station exceed 70 million times , and there are many local festivals. Multiple traffic peaks can be created within a year, which helps sellers to quickly create popular models and increase sales.

Roman Shi Baijie

As a developed region in Australia, it is a false proposition to say that consumers here have low purchasing power, but your products have not yet become the best choice for consumers. In order to make consumers choose us, we will use social media to do marketing and advertising to enhance their determination to place an order. At the same time, with our Amazon on-site marketing tools, it can stimulate consumption conversion.

In the Middle East, we have established a relatively complete dealer system earlier. The feedback from consumers through dealers is that the consumption preferences of the local people in the Middle East are relatively conservative. After operating the Amazon Middle East station, we found that the mainstream consumer groups in the Middle East are extremely young. For this reason, we try to make some products with outstanding design and strong functionality to promote to the Middle East, which are unsurprisingly warmly welcomed by consumers. In fact, no matter where the site is, promotion and product updates based on the most direct feedback from the local area can better meet the needs of consumers and make them willing to buy and buy.

Amazon Global Selling

Australia Station: According to statistics , more than 80% of Australian consumers have purchased items from cross-border e-commerce, far exceeding the global average of 51.2% 4 ! As long as you choose the right product and immediately enter the market , it is actually not difficult for consumers to "buy, buy, buy"! Among the selections on the Australian station, electronic products, household groceries and fashion are the categories that have grown faster in online shopping, and categories such as beauty makeup and outdoor toys are also the main consumer goods for online shopping in Australia. During peak sales seasons like Black Friday and Cyber ​​Monday, Amazon Australia's top-selling categories are as follows: kitchen supplies, toys, video games , computer accessories and electronics.

Middle East Station: In the Middle East Station, there are more female consumers than men. Sellers can consider the needs of female groups when preparing products, and add warm colors such as pink and light blue to the appearance of products.

Roman Shi Baijie

To do long-term business overseas, it is basic to fully understand the requirements of local laws and regulations on products. We must abide by local laws and regulations, and the products must also meet some local certification requirements. As long as the product certification is complete, many problems can be avoided. For example, for our hot-selling mobile power supply, the most important thing is to obtain a local sales license before selling it. As far as Australia is concerned, we have obtained the corresponding license before selling, so as to sell locally. Sales in the Middle East are subject to VAT, but applying for VAT is not complicated. We applied for VAT registration through the official website of the United Arab Emirates, and there will be email reminders throughout the registration process. Follow the instructions in the email step by step, and the application is successful without paying any fees. The language doesn't need to be Arabic either, just English. Secondly, compared to Europe, the VAT tax rate in the UAE is as low as 5% . In addition, the VAT of the European station needs to be completed by a local accounting firm. In contrast, the Middle East station saves money and worry.

Amazon Global Selling

To give consumers peace of mind when shopping on Amazon, Amazon may impose additional fees, performance checks and additional eligibility requirements for certain products and categories. For some special selection categories, sellers need to be approved in advance to sell, such as mobile phones and accessories, clothing and accessories, etc., all need to obtain further approval before submitting a sales application. For details about product compliance, you can learn more about it through the seller platform! If sellers have any difficulties in the process of compliance certification, they can contact Amazon's investment manager for professional advice.

Roman Shi Baijie

Based on the operating experience of other sites, we directly chose the FBA service in Australia and the Middle East . For sellers and users, FBA is a good experience and choice. Sellers using FBA do not have to worry about losing goods or taking other risks; users have full confidence in FBA's timely, fast and accurate delivery services. In general, we are very confident in Amazon's new site. According to the current development momentum, we expect our performance in Australia to at least triple compared to last year !

Amazon Global Selling

Using FBA services can make your product stand out from the crowd more quickly. The FBA delivery service of the Australian station has achieved two-day delivery in 80% of the regions, and even one-day delivery in some regions, which can help sellers improve user experience and increase conversion rates. In addition, FBA services offer preferential prices and free upgrade opportunities, which can effectively improve store performance and reduce risks caused by self-delivery.

The success of ROMAS in Australia and the Middle East is not only due to their rich operating experience in mature sites, but also inseparable from the unique advantages of emerging sites. The growth of sales is also inseparable from the control of the peak season .

Data Sources:

1 . wxxojlccarxrq-hugaer=.qhufqn=cz=aznrxhucNYqGDPqPCAPqPPqCD

2. Competitive Landscape Overview BySimilarWeb.December_2019

3. Data source : Ecommerce Foundation, “2018 Global Ecommerce Report”

4. Morketing-《White Paper on Cross-border Export E-commerce Marketing 2017-2018》

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