Happy belated Chinese New Year!
While a quarter of the world just celebrated the Chinese New Year, do you know that Chinese sellers on Amazon are getting more and more in percentage? More than 60% of e-retailers in China sell on Amazon marketplaces. Up to 90% of them sell on Amazon.com, according to a report released in Aug 2016 by Payoneer Inc., a B2B online payment company. We have collected some facts about how Chinese sellers grow stronger, using different ways to achieve their goals while selling online. Here we simply list out the facts and we try to stay as impartial as possible. We tend to leave the judgment to you.
1. Hijacking private label listings
This should be familiar to those who sell private label products on Amazon. Chinese sellers tend to sell your products. To file a claim takes forever and extra work. By the time you finally win, they’ve already earned a fortune out of it. They think fast, they move fast, and bang, they start selling your products next day morning without noticing.
2. ‘Improper method’ to get massive feedback and reviews
We all know that selling on Amazon, seller feedback and product review matters. How do you get them when you just freshly started your business, with barely decent enough order amount, on Amazon? Other than asking family and friends to help out, Chinese sellers would do whatever it takes to add up reviews. This is similar to click farming. There are hundreds of click farm company in China guarantee you a 100% positive review each month with a large amount of orders. This is extremely common on Facebook getting ‘likes’, and it is extremely common as well on Taobao, the largest e-commerce website in China, even though it is illegal.
3. Business operating agency (One-stop service)
There are plenty choices of online software that helps you optimize your Amazon business. There are even more in China! All kinds of service and they provide it in their own language. No more language barriers. You can simply pay for everything, and everything would be taken care of nicely.
4. Black technology
Or another way to call it – Futuristic technology. There’s nothing black or evil about this technology, instead, it’s another way to rephrase ‘cool tech.’ For example, there are some methods spreading out on the internet about how to find out who’s the reviewers for your products, which involved HTML code and other techie things. And many other tips that you wouldn’t expect. I believe that’s why it’s called futuristic tech.
5. Lower labor cost
Labors in the US have a higher minimum wage than in China, which makes the American labor, in any form, more expensive compared to Chinese. The standard for minimum wage per hour in Shenzhen is around USD $3.1 (RMB $19.5), comparing to the minimum wage per hour in California – USD $11. This makes every fact mentioned above more sense. Lower cost leads to more service. The chance is relatively higher for sellers to pay for the service and thus, growing fast and strong in a relatively short amount of time.
To out win your competitors, first you need to understand them very well. Here we provide the bloody facts.
Have you decided how to react to these and tackle them down?