Amazon: in 2022, we will adjust FBA distribution expenses to partially offset the higher permanent operating costs we face in the future. Since the epidemic, this fee and previous fee changes have continued to be lower than those of other logistics service providers. These changes will take effect on January 18, 2022. Amazon freight
Picture source: Amazon
There was a lot of wailing yesterday, saying that the product distribution fee increased by two or three dollars, or even more, and many people lost money. Originally, the profit is very low. No, it should be that many people are making products that are a little sold, with a cost of dozens of yuan, but the profit is only two yuan, and the RMB profit is maintaining the order. As long as the cost increases a little, it will become a loss, not to mention a lot of increases this time. In addition, the position of Mason Zhengban has been tight recently, and the freight has begun to rise again. It is difficult not to lose money.
I mentioned several cases before. Their products cost tens of dollars. At ordinary times, even Meisen can't afford it. They can only take the cheapest and slowest Yantian slow ship to maintain a profit of three yuan per order. Such a product positioning itself is a mistake. Even with such a low profit and low price, there can be few orders a day. As soon as the freight rises, it will be in a state of loss, a dead cycle. Amazon freight
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Why not on the other hand? A few dollars can earn tens of dollars to maximize profits. Sometimes I don't understand. If I think this mode is very tired, why not think about whether this mode can go on.
Before, a fan worked in this mode for nearly a year and lost a lot of money. Later, I was bored and scared and recommended a product to her. After building it for a period of time, I said, Doug, this type of product is really fragrant. It sells more than 100 orders every day, has a high profit margin, and it saves effort. In the later stage, it can also be deeply cultivated and vertical. It is no longer afraid of further price reduction of competitive products as before, so its own products can't play. To understand that choice is greater than effort
In the new year, 2022, I still suggest that novice sellers should choose light and small types of products. According to the current trend of logistics, the freight rate will still be unstable next year.
In the Amazon market next year, the Matthew effect will be more obvious, the good will be better, and the bad may be worse. Sellers who don't realize this will feel more and more difficult to do. In fact, you can find that, like the recent market environment, many people think it is an off-season with low sales. However, some people reported that the market flow was very good and the sales volume continued to rise. Moreover, taking advantage of the rising trend of good flow and sales volume, the price of products gradually increased and the ranking of products still increased. Amazon freight
The price of a series of our products has also gradually increased. The products from the original price of 8.99 to 16.99 still have the same sales volume and ranking. Moreover, other products are also like this, gradually increasing the price and striving to achieve the maximum profit.
We are constantly trying and demonstrating what kind of user groups and user portraits the product is suitable for. Facing such a large market, it is very important for us to learn to be "consumer" oriented rather than individual oriented.
Choose a long tail subdivision category with large demand and small competition, first enter to create a product, survive, and then slowly seek development, and then extend, vertical, deep plough and stick to the product. The product life cycle can be greatly improved, and can also have the core competitiveness and barriers of their own products. This is not a labor-saving and money-saving model.
Some people say that this extended, vertical and deep farming model is no longer suitable for the Amazon market. I also wonder why it is not suitable? What's wrong? If you always put the cart before the horse, you must not adapt. If you still use the previous thinking to adapt to this market, you must feel very tired. It's time to stop and think about it.
Then why are you afraid that others under the same sub category will play ultra-low price vicious competition? (this is also a question many people ask me). If your product is pulled down by competitors because of this, you also need to think about your product positioning and the core competitiveness of the product, and return to the essence of the problem. Amazon freight
How to cultivate their ability to make money?
From my experience, there are four steps:
1. See first, open your eyes, know more business cases, go to a stronger circle, refresh your understanding, and understand how others make money.
2. Imitate again. Find the fields you are interested in and know relatively well, refer to one or more competitive products, try to imitate, and then learn from each other.
3. Rear penetration. Accumulate a lot of failure experience in imitation, and improve their judgment of "making no money when a business is low".
4. Go beyond. Be extremely familiar with a certain field. After having successful experience, be differentiated in "no one has me", accumulate professionalism and form greater barriers.
5. Through these processes, make yourself more and more brave on the way to making money.
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