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Is Amazon Helping Chinese Merchants Compete With You?

by Importexport
3 replies
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Read the article I have linked below and see if you feel betrayed by Amazon. Here is a brief quote from the article in the Internet Retailer: “Selling on Amazon’s global sites gives merchants in China and elsewhere access to millions of loyal Amazon shoppers.”

I know business is business, but wouldn’t you like to get some extra help like this? Read the whole article here:https://www.internetretailer.com/201...s-amazon-sites

 Walter Hay.
"If you think education is expensive - consider the cost of ignorance."
#amazon #chinese #compete #helping #merchants
  • Profile picture of the author Importexport
    NOW AMAZON IS MOVING FURTHER TO HELP CHINESE MANUFACTURERS SELL ON AMAZON.

    The Article I linked in the post above includes this statement: "Amazon is actively encouraging Chinese merchants to sell on its sites, and recently unveiled new services designed to increase the selection of Chinese goods available on Amazon sites around the world."

    It is also worth noting that Eric Broussard, vice president of international seller services, has also said that "China is one of the most important markets for our Global Store business" and that Amazon would "keep increasing investments in China to help more Chinese companies expand all over the world".

    Now Amazon China is registered as a licensed ocean freight forwarder. Their goal is to provide Chinese manufacturers with direct shipping from the factory to FBA, so that they can sell direct.

    Amazon will subsidize shipping costs in order to encourage Chinese manufacturers to sell direct on Amazon.

    For importers, shipping directly from the factory to Amazon now becomes riskier than ever. Once manufacturers know what you are selling there, they will be able to learn sales volume on Amazon for your product, and there would then be nothing stopping them from shipping directly to FBA.

    To have any chance of competing, all importers need to be sure they are buying at the best possible price. I teach how to do that, and the first step is to buy only from genuine manufacturers, not from the multitude of traders pretending to be the real manufacturer.

    Walter Hay.
    "If you think education is expensive - consider the cost of ignorance."
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    Use emotions and perceptions to build a great brand. Ask me about my book LabelsThatExploit. For safe sourcing and easy importing from 41 countries globally, see https://provenglobalsourcing.com
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  • Profile picture of the author Shellg
    Once again importexport, youve given some great help to us who are new to importing. So far Ive still been able to make my 5x cost margin, so if Amazons bad actions cause me to lose some business I can still cut my prices.

    Is that the best thing to do if Chinese sellers start to take my business?
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    • Profile picture of the author Oziboomer
      Originally Posted by Shellg View Post

      Is that the best thing to do if Chinese sellers start to take my business?
      You need to ask yourself would a wholesaler or manufacturer in China prefer to sell a greater volume to fewer people and have them run successful businesses or would they prefer to sell directly to thousands of people?

      There is always a concern even in domestic markets that an importer, wholesaler, manufacturer decides to vertically integrate.

      In my business there tends to be a group of skilled individuals selling and marketing to the general public and only a few number of import/wholesale/distributor type operations.

      I've spoken with two major suppliers on this issue and they prefer to deal with businesses they "Know, like and trust" rather than trying to sell to everyone.

      Another thing to consider is as businesses get larger they tend to narrow their range to higher profit cash cows and to cull the poorer performing products. They also become slower to adapt as they get bigger and bigger.

      This will always provide opportunities for smaller "more nimble" companies to grow in various sectors.

      Have a read of Eliyahu M. Goldratt's "The Goal" and "It's Not Luck" to get an understanding of how to out manoeuvre larger competition. https://en.wikipedia.org/wiki/It%27s_Not_Luck

      These business novels teach the reader about the "Theory of Constraints " and are worth a read if you have an interest in improving business.

      They may also help with some lateral thinking in relation to the situation proposed by Walter's post.

      Best regards,

      Ozi
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