Amazon caters to consumption in a weak period, and the sales of low-priced products are growing rapidly
Amazon recently launched the installment payment feature on the platform, which was first launched on the listing of ** products. When a buyer buys these products, they can repay them to the bank in several installments without paying any interest. According to the merchant's feedback, as long as the product** is more than $50, there is a chance to open installment payment.
According to industry analysts, this move is mainly due to Amazon's desire to further stimulate consumption. It's similar to how Chinese e-commerce platforms play the game, all trying to increase the purchasing power of users. As cross-border e-commerce enters a period of fierce competition, Amazon is facing strong challenges from many competitors such as Temu and TikTok Shop. It is also stepping up its efforts to cater to users and win more orders.
The relevant person in charge of Yicang ERP said: "At a time when global consumption continues to decline, users' consumption budgets are indeed more limited. If e-commerce platforms want to maintain their growth momentum, they must take measures to stimulate consumer desire. Installments are undoubtedly one of the entry points. ”
Surge in low-priced products Sales of some categories increased by 150% year-on-year
In addition to the launch of installment payments, Amazon has also recently carried out price reduction campaigns in several categories. This is also inseparable from the background of consumption downgrade. Industry data shows that at a time when household spending in the United States is shrinking, the sales of low-priced products are much higher than those of ** goods.
In the case of Amazon's best-selling headphones, the average selling price of headphones has dropped by 15% over the past year. However, its unit sales increased by 159% over the same period. What's more worth mentioning is that the sales growth rate of headphones that are lower than the average is 45% faster than that of headphones with higher ** year-on-year!
In many categories such as small household appliances and toys, there is also a similar sales phenomenon. Sales and revenues of low-priced products generally increased by more than 70% year-on-year, far exceeding the sales and revenue of higher-priced products. In some toy categories, the sales of low-priced products have increased by 300% more than ** products.
Relevant experts analyzed: "This fully proves that users attach great importance to the best factor at present." E-commerce platforms and sellers are looking for ways to offer deals that cater to user needs. Only in this way can we maintain growth in a highly competitive environment. ”
70% of users said that ** influencing the purchase decision has outweighed other factors
What is it that makes low-priced products so sought-after?An industry survey provides the answer. Among them, more than 25% of the surveyed users bluntly said that comparing different products** is the main reason for them to choose online shopping.
With inflation stubbornly high, disposable income is shrinking for most households. More than 70% of users say that inflation has severely affected their consumption. To save money, factors are fast replacing packaging, branding, functionality, etc., as the number one consideration in purchasing decisions.
This is also what we found in the course of our operations. The relevant person in charge of Yicang ERP added, "Users pay more attention to ** and discounts than in the past. Therefore, we are also formulating sufficient strategies in major sales festivals to make products more competitive. ”
In addition to discounts, offering coupons is also one of the favorite ways for users to save money. According to the data, more than 30% of the surveyed users are using various coupons or discounts to save money.
E-commerce platforms are competing for bidding, and the "price reduction war" is likely to escalate
Not only Amazon, but also Temu's performance once again confirms the selling power of low-priced products. During this year's "Black Friday", Temu distributed a large-scale coupon of $200 per person and a free order of any 3 products, which successfully promoted many products to be purchased for only 1 cent.
While making such a big effort to "please" users, Temu has also ushered in a blowout growth. On the day of "Black Friday", the total payment amount in the United States increased by more than 4 times year-on-year. It has been in the market for less than 2 years and has already amassed a sizable user base in multiple markets.
Temu's discount war has caused many merchants to suffer heavy losses, and has also pushed up the intensity of competition in the industry. In response to the low-price attack of many competitors, it is expected that traditional e-commerce giants such as Amazon will also launch more preferential measures to lower the overall product level and further cater to users' desire to "save money". **A "price reduction war" between cross-border e-commerce platforms also seems to be coming.
For sellers, this is undoubtedly a huge business pressure and change. "This kind of price reduction competition is a big challenge to our profit margins. Relevant people said.
However, we are also actively looking for more effective first-chain and operation solutions to adapt to the new changes in the e-commerce situation. The person added.
What awaits at Amazon may be another upgraded version of the "price reduction war". In the face of this "war", E-warehouse ERP hopes to help e-commerce sellers improve the efficiency of the first chain, reduce operating costs, and win the first opportunity in the fierce competition through technology empowerment. After all, at present, whoever has strong commercial allocation ability will be able to stand out in the price reduction storm.