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Davide joins us for part 3 of How Chinese Sellers are Winning.
Access to Cash
- Amazon is a cashflow business and many Western sellers cannot get the money to expand product lines this helps why Chinese sellers are winning
- Chinese Sellers lose as much money to run lots of trials and test to get speed
- Lose money as much time as they can because they will beat the competition using their get sh*t done ethos
- USD$50bn invested in 2018, we don’t see these numbers in Europe
- Invest to spend and make the mistakes to approach the market in the right way
Amazon is a hot property
- Not all of the Chinese Amazon sellers have access to lots of money
- Many Chinese investors are looking to provide money into Amazon Sellers as it’s a hot topic and can give a return right now
- And they will invest in a 26yr old with 2 years experience in a big Chinese seller on Amazon who goes out on his own
Deep Pockets
- A Chinese Seller found that a competitor had opened up in his market with the same product but cheaper – turned out it was the owner of his Chinese supplier factory!
- Chinese sellers will undercut and lose money to push you out of the market with deeper pockets
Black Hat – Risk Tolerance
- Not all Chinese sellers go the black hat route
- But those that do Black Hat don’t see it as a ‘black hat’ issue – it’s just doing business
- Getting there faster through taking shortcuts means more risk taking
- Breaking the rules a little bit is seen as okay and contributes to why Chinese sellers are winning
- But once one breaks the rules it creates a vicious circle of everyone doing it
- Not seen as a risk because lots of sellers are doing it
- There are special courses in black hat tricks for 2,000-4,000 USD
- They market the course by saying you are stupid if you’re not doing these things as everyone else is
- It’s driven by reducing speed to market and getting the sales
Culture
- Don’t see the risk as not living in US or Europe – so even getting caught is not a big problem
- They’re not working on building a brand so much so less risk
Self-improvement
- Typical working week of a Chinese account manager is very different to Western
- Want to learn as quick as they can – so they go 7 days
- Western account managers take the weekend off and finish 6pm on Friday (in Spain 2pm)
- Chinese people can be requested to work on Sat and Sun as it’s legal
- 44hrs Max in China, some in Europe are 36hrs
- So Chinese are constantly studying and improving themselves
- Attend a lot of training, meetups and workshops
- Saturday or Sunday are the only days you can run training as they don’t want to lose a working day in Mon-Fri
- They expect to one day run their own business and so want to know how everything works end to end
- Normal to constantly learn, share articles, chat on weekends about work, and improve
- Cultural push to focus and be number one in China
Summary
- The level of competition and lengths that Chinese sellers will go
- Access to money
- Like to get sh*t done
- Competitive on pricing
- “Hard work beats talent when talent doesn’t work hard”
- We live in a world where there is competition
