In 2024, we cross-border people will continue to ride the wind and waves.
Amazon's FBA cost** has given sellers a hard blow, whether it is on social platforms or in the seller community, there are constant topics about sub-warehouses, shipments, fees and so on. At the same time, in order to avoid configuration fees, some sellers have taken risks and caused trouble.
More importantly, for Amazon sellers, the current cost pressure is huge, and if you want to get rid of or reduce the impact, of course, it is to find a more suitable platform. In our previous article, we analyzed the two rookie platforms, TikTok and Temu. Today, let's talk about the giant in the fast fashion field - SHEIN.
Lessons of Blood:
In order to free the configuration fee, some sellers have eaten performance!
As soon as Amazon's inbound configuration fee came into effect, sellers were in trouble.
Just when we were still holding the calculator to calculate the configuration fee, some sellers boldly tried new methods in order to waive this fee. A few days ago, we also mentioned in the article that some service providers advertise the operation of "free configuration fee", and today some sellers angrily say "blood lessons,."Don't just believe that some service providers are free of configuration fees
Specifically, after the seller used the method recommended by a service provider, he went to help his friend waive the configuration fee, and the background was set up to be no problem, and he also authorized the ERP third-party tool to operate, but after the operation, the other party's store background received a performance notice.
Source: Shared by sellers.
The new number that finally came down was finally successfully filed, but because I wanted to get wool free configuration fee and ate performance, I don't know what to do now. After this incident, the reply of the Amazon manager was: It is recommended that the seller be directChange the label and change the store。At the same time, the Amazon manager posted in the circle of friends".Amazon's wool is just picked, anyway, if the store is gone, don't feel distressed, everyone takes it as a warning
Source: Shared by sellers.
For this experience of the seller, peers also have something to say:
"As soon as the policy came into effect, I found a service provider to waive the configuration fee, and I was really bold! ”From this point of view, Amazon's operation is to let sellers honestly raise costs, and sellers have to make their own choices between whether to increase the price of products. Many sellers are more aware that Amazon is not a long-term place, so they turn their heads and hope to find a more suitable platform to survive.Dare to pick up Amazon's wool, is it because the store lives for a long time? ”
Than fully managed incense?
Sellers do SHEIN profit margin 25%+!
In addition to TikTok and Temu, the two hotly discussed platforms, we can't ignore the fast fashion giant SHEIN, if it settles in, is it suitable for us sellers?
In June last year, a seller settled on the SHEIN platform, and at the end of December 2023, a new SHEIN European station was opened. According to him, after half a month of stationing, he put 3 products on the shelves, made almost 40 orders, and sold for 600 US dollars, all of which were distributed by Amazon through multiple channels, but the delivery fee was a bit expensive.
Time has turned to the current year of 2024, and his performance has also achieved a wave of improvement. According to him, the sales of his Shein platform reached 20,000+ US dollars last month, because there are no promotion fees and storage feesThere is no commission for the European station, and the profit margin is 25%.。In this regard, he also sighed: ".It's much more incense than a full custody of incense！—Compiled from Weibo@amazon Fifth Master.
As we all know, it is not easy to do a European station, and there are various certification and compliance policies, and it can be said that it is not easy for sellers to get a piece of the pie here. However, according to the seller, if the Amazon seller does the SHEIN European station, then when doing SHEIN, you can use the VAT, EPR and other materials under the Amazon European market.
However, if you want to enter SHEIN, our investigation of product categories is also very important, according to a seller in the security category, I don't have any orders in SHEIN. Therefore, when we make the final choice, we still need to consider it according to the actual situation of our own products.
3. Enter the game cautiously.
In addition, although SHEIN has a place in the e-commerce sector, for us sellers, we also need to conduct an in-depth investigation of SHEIN's existing cooperation model to find the most suitable feasible solution for ourselves.
Shein has even topped the popularity list!
How do sellers choose these four major cooperation models?
The market is changing rapidly, and the share is only fast and not broken. For SHEIN, there are two brushes to stand out in the fierce competition environment of global e-commerce platforms. Of course, since the launch of the platform model, SHEIN's ambitions have been even greater.
A few days ago, the overseas authoritative agency PYMNTTS recently released the list of global shopping apps in FebruaryShein has been on the top 1 of the list for seven consecutive monthsAliExpress, AliExpress and the international station ranked second and fourth respectively, and Amazon ranked third. It can be seen that SHEIN is quite popular overseas.
Not only is the popularity high, Wall Street** has also reported that SHEIN's sales in 2022 will reach $23 billion. CNBC reported that according to SHEIN's partners,Shein's annual revenue "is well over $30 billion."
Source: CBNC
Whether it is popularity or revenue, for SHEIN, it is of course our seller group that continues to "add bricks" to business growth. Some industry insiders shared that at present, for sellers on the platform, Shein has the following cooperation models:
**Business model: ODM and OEMODM and OEM are mainly for the first, factory, productive business, can make pattern, the difference is: OEM is the second design template of Shein, and the merchant produces.
OBM fully managed provider model:
A first-class chain management model, including the whole process of design, production, sales and delivery, is controlled and managed by SHEIN.
Third-Party Seller Model:
It refers to the model on the SHEIN platform that allows other merchants (third-party sellers) to sell products on its platform.
Generation operation model:
This is mainly for sales in the United States, but also requires overseas companies, and for the first time, it cannot be less than 5W value of goods, models and OBM.
Of course, the current Shein is not all going well. Chinese e-commerce giant Shein has reportedly sought an initial public offering (IPO) in the UK due to less optimistic US listings, however, the effort is facing backlash from some of the UK's biggest retailers.
All of this is pressure on SHEIN. At the same time, the Temu platform is also a big rival for SHEIN. Temu focuses on the full custody model, while Shein implements the dual development model of "self-operated brand + open platform", but they all have the same goal, and in the end, they are all grabbing the market, grabbing the best business, and grabbing the service provider.
Therefore, in the face of a new platform like SHEIN, the results that our sellers get after entering can be said to be Schrödinger's cat. Maybe it will bring new performance and break through the shackles of Amazon, or maybe it will lose power on both sides, so how will you choose? Do you choose to try, or do you want to stick with Amazon?