China’s one of the biggest markets out there, and borderless ecommerce means you can get in on it, too. But how do you go about competing with such a retail giant? RepricerExpress will show you how to analyse their market and what you’ll need to take it on.
How Amazon Succeeds in China
There are four key areas we’ve identified where China excels, and understanding them is the first step in mastering them.
1. Using Foreign Talent
With a population of about 1.4 billion, China has no shortage of talent it draws upon to fill its highest-level positions. But it also realises the importance of finding talent abroad, such as English-speakers, and seeks them out where they can. However, there is a downward trend right now to foreign talent, as China understands that finding native English speakers isn’t quite as important as it once was for establishing authority.
2. Relentless Research
One of the strongest sights we’ve seen is just how much time and effort the Chinese are willing to put into market research. They view it as a crucial necessity to work, with businesses devoting staff specifically to this role. You can see how this manifests itself with low pricing and high parity amongst sellers, as they track their competitors to such a fine degree.
3. Supply Chain Access
Chinese sellers work with Chinese manufacturers (of which there seems to be no shortage), making their supply chain incredibly accessible. It also means that if they need to make adjustments quickly, it’s pretty easy to do so. The language barrier just isn’t there the way it would be for a European seller working with Asian markets, giving them an edge in communication. And their government is heavily backing and promoting Chinese businesses, which gives them a stronger safety net for success.
4. Black Hatting
As much as China creates strong rules and plays within them, they also break them by delving into black hat practices. Sure, it’s not fair at all when they violate Amazon’s rules, but it’s a sign of how competitive they view the marketplace. Luckily, you’ll generally find this with smaller businesses, as the larger ones tend to see it as a risk not worth taking.
How You Can Win Against Amazon Chinese Sellers
If the above seems a little daunting, then all you have to do is break things down to a level where they’re not. And here are some of the things you can focus on.
1. Focus on Quality
For better or for worse, China tends to be associated with low prices — and the low prices tend to be associated with low quality. It’ll be incredibly difficult to compete with them on low prices considering the ease of supply chain they have, so don’t (compete). Instead, keep your prices at a comfortable-for-you level and put the focus strongly on quality. If you’re having trouble with that, remind your buyers how spending a little more means they’ll save a lot in the long-run because of increased quality.
2. Convey the Human Aspect
As a native English speaker, you have an advantage in creating listings that speak with authority and genuineness simply by writing with correct grammar and idioms. And when you’re dealing with buyers, show them some warmth and individuality instead of turning them over to a bot. These two things will help create a buying experience people will return to.
3. Solidify Your Branding
Lastly, focus on the small points to set yourself apart as a distinct, recognisable, quality brand. Take time to work on things like your images, colour scheme, logo, website and packaging so that one element is strongly tied to another.
Final Thoughts
It’ll take some time to really get these points down to where you can strongly and consistently compete with Amazon Chinese sellers, but the payoff is well worth it. You’ll be vying for an audience of hundreds of millions, with the potential for sales vast and untapped. To help you get there, use RepricerExpress so you can set your prices as aggressively as possible, while still maintaining a workable profit margin for yourself. When you’re ready to start winning, sign up and kick things off with a 15-day free trial.
