BREAKING: Amazon To Launch New Discount Store for Chinese Sellers! (The End of Amazon FBA?)
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- Опубліковано 27 чер 2024
- Is this the END of Amazon FBA as we know it? Amazon has just announced the launch of a new low cost discount store that will allow Chinese suppliers to ship directly to Amazon customers, cutting out the middle man! This will put Amazon in direct competition with the likes of Temu and Shein who offer discounted goods shipped directly from the manufacturer to the customer.
In recent years, Temu and Shein have expanded rapidly and captured a large chunk of low value ecommerce in the US and the UK. Amazon has decided enough is enough and is now fighting back with the launch of their very own discounted storefront that will enable customers to buy directly from factories at low prices.
Some Amazon sellers are concerned that this could have a major impact on Amazon FBA business models, however, I think private label sellers will be just fine providing they adhere to my core principles.
Many Amazon FBA beginners think the key to becoming a successful Amazon FBA private label seller is having the cheapest products on Amazon, but this is simply not true.
While there will always be a certain percentage of Amazon customers that buy the lowest cost goods, there is also be a large number of Amazon customers that buy based on value instead.
The key to making money selling on Amazon in 2024 is offering premium products that have greater perceived value than cheaper competition. It doesn't matter if other products are cheaper if your product is superior and priced reasonably.
When starting an Amazon FBA business you should focus on how to make products better, not cheaper.
Amazon didn't build build a massive logisitics network with hundreds of fulfilment centres and thousdands of delivery drivers just to give it all up and become a dropshipper for cheap Chinese rubbish.
I have been selling on Amazon FBA UK for 6 years and I believe Amazon private label is here to stay.
What do you think of news that Amazon is helping Chinese suppliers to ship directly to Amazon customers? Will it stop you from starting Amazon FBA UK in 2024? Let us know in the comments below! !
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To comment on your comments Darren, 1. Temu takes from 5-25 days and Shein 10 to ship yet they are a major threat to Amazon. 2. people are already aware the cheap stuff comes from China but they are also aware that all stuff comes from China. Those that care to not buy cheap, don't shop Amazon. 3. The fact that Temu and Shein are a threat to Amazon and all Western retail is that they sell cheap. People seem to ok with waiting to pay less. 4. Amazon allows Chinese factories to use Western businesses' pictures, even though they say they don't if your product is unique. It doesn't matter if their quality is inferior, what the customer is looking at is your product and is not aware they'll get a knock off. 5. Chinese factories are CCP subsidized and can afford to flood markets with ads which makes it difficult for Western businesses to even be seen. 6. If the US government steps in, which it should, China will still have Amazon to be their conduit to the US market and will still be able to annihilate US businesses as it has been doing since 2015. Amazon needs to be stopped too. 7. Amazon has always used small businesses to appeal to customers and to the Government. The fact remains, however , that Amazon has played a huge role in the destruction of small businesses and in helping Chinese factories. Chinese factories will continue to win but may have to still pay Amazon it's piece of the pie. The ones that will continue to lose are the small businesses. Helping China win over world retail just isn't good no matter who does it.
hasn't this always been the case?
the difference was Chinese wholesalers have never listed directly on amazon as they don't want to deal with usa taxes and laws and petty small orders.
shein and temu are full of Chinese middle men sellers just like amazon is. the difference is nationality.
What the factories have been doing is use the names of their employees to create selling accounts so customers believe they are buying from a small business when in fact, they have offices dedicated in their factories to just selling on Amazon, eBay, Walmart, etc. It's an industry in itself.
Fully agree with that assessment Darren. This is actually be beneficial to us sellers. Big politics, big numbers, but we might be on the winning side, finally!
How do you figure that? Amazon will make it cheaper for Chinese factories that already control US Amazon by taking care of their shipping as well, which will be handled by Amazon: Cheaper and faster. This will be the end of Western businesses on Amazon and the takeover of Retail by China will be complete.
People are beginning to notice Temu craps
This is going to be harder for people who just slap on a label and ship to Amazon hoping it will sell, you have to now create a brand identity toward your product and treat it like a business brand.
dont give out the method
They have already created their own labels. Amazon encouraged them to. What sells on Amazon now are the businesses that can afford to pay those exorbitant amounts for ads. Since Chinese factories are wealthier than small businesses and are subsidized by their government, they can make you invisible no matter what percentage of your profits you pour into Bezos' coffers. They are also flooding the US patent and copyrights offices so they can monopolize products in the US, even those they stole from businesses there.