How Chinese Sellers are Winning the Race on Amazon (pt1)


Davide Nicolucci from Italy and working in China for the last 4 years joins us to talk about how Chinese sellers are winning the race.

Mindset

  • Chinese sellers are obsessed with their competitors and therefore Chinese sellers are winning
  • The work of the Chinese Seller can be summarised in an entire huge spreadsheet
  • The numbers have much more value to Chinese Sellers than they do to Western sellers
  • They spend a lot of time in research on competitors, keywords and price
  • They focus on under-cutting price

Analyse Changes

  • Use a lot of search tools which mean Chinese sellers are winning on the research front
  • When they notice a small change they dig in to understand what happened to make that change
  • Careful to analyse
  • What really matters is the final sales numbers
  • They constantly research what’s going on in the marketplace
  • Western sellers research until they find the Factory and then tail off

Approach is Different

  • Different approach to the market and what ‘selling’ means
  • Bring the baby through the entire process as a baby
  • Vary careful attention to the competitors

Anker

  • The Apple of private labelling
  • Chinese had not been known for their branding expertise until Anker
  • Great branding and marketing
  • Anker inserts are brilliant

Product Performance over Brand

  • Quality and branding working together as one
  • Product selection is based on the sales performance – it’s a numbers thing and not the branding
  • Medium and low brands – throwing thousands of products onto Amazon and hoping one or two would be hits
  • Anker became big because of Amazon
  • They sold on Amazon and became big because of their strategy and stumbled on the Powerbank selling well

Competitors

  • Amazon’s requirements for seller support pushed Anker forwards
  • Tao-tronics started selling LED lamps, not they also sell bluetooth speakers, adapters and audio devices
  • They were selling well as a brand and so they added more products to it
  • The security from Amazon providing reviews and quality in the customer’s eyes helped the Chinese seller
  • Selling a swiss army knife with a bunch of powerbanks – it’s a sales numbers thing

Get sh*t done approach

  • Highly practical approach culture in China
  • Working culture is very different in the West
  • Steps: Planning, research, analysis, strategy, getting approval, then sales and then more analysis
  • Faster in China
  • The Get sh*t done approach
  • Speed to launch a new product in the marketplace is key
  • By the time a Western company has done it ‘s research the Chinese seller has already launched and sold it

Contact

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