The REAL Trade War - How to Compete with Chinese Sellers - Amazon FBA UK 2019
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- čas přidán 30. 05. 2019
- Amazon UK is saturated with Chinese sellers, these are my thoughts on how to beat them when selling on Amazon FBA.
When people mention the trade war they are usually talking about China vs USA, however, the real trade war is taking place on open marketplaces such as Amazon where Chinese sellers are outnumbering and undercutting domestic sellers.
I have been selling and making money on Amazon since September 2019, during this time all of the niches I sell in have been saturated with sellers selling cheap inferior alternatives.
Thankfully, my FBA private label products have continued to sell well as I customised all of my products to offer more value.
You will never win a price war against a Chinese seller so it is imperative that your product has additional features so that a customer has a stronger reason to pick your product rather than just the price.
This is the comment I received from "Oli H" regarding his experience of selling on eBay and Amazon FBA alongside Chinese sellers:
"Hey Darren, love the videos mate. I was a fairly well established seller on eBay during my time in sixth form and first year of university.
My main reason for leaving was because of the massive influx of Chinese sellers operating on eBay UK, and driving prices down to below profitable levels.
Fast forward to 2019 and I have just gone live with my first product on Amazon, and I kid you not the same thing is happening again, at least 5-10 new listings each week for the same product from sellers with Chinese business addresses.
Could you please do a video addressing this issue and techniques you may know of to combat it? The way things are going Amazon is fast approaching eBay 2.0 status"
Here are some of my top tips for beating Chinese sellers selling on Amazon:
1) Use your home market knowledge of the types of products people are currently buying, how they use the product, what the current design trends are and anything else that you can think of that Chinese sellers would not know.
2) Invest in professional photography, you can sell identical products for a higher price if the photos look better as it offers a higher perceived value to the customer.
3) Consider introducing a UK theme to either your company, logo, branding and/or photography - many people prefer to buy from UK sellers so this will help you stand out.
4) Try to avoid using product search tools such as Jungle Scout and Viral Launch, these tools tend to help lots of sellers all find the same products.
5) Proof read your listing for typos and grammatical errors, even if this requires paying for a copywriter - listings from Chinese sellers are usually littered with mistakes!
Share your experiences of competing with Chinese sellers on Amazon FBA in the comments below! !
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Thanks so much for responding to my comment, after some recent tweaks and changes similar to what you mentioned in this video my sales are improving!
You're welcome Oli, glad it helped!
haha "thats what she said" that snip killed me! your content is ace mate keep it up! so much value!
Thanks Ash
You can never go wrong with a quote from “the office” 😂😂😂 nice one
Great stuff. I hope the differentiation I'm going for in my product works! 🤔
Samples arrived this week! 😆
Exciting times mate, I hope they turn out well 👍
Great video once again! Would you consider making a video about barcodes and labelling in general ?
That is in the pipeline!
Hey Darren thanks for an awesome channel. I'm still thinking of entering the FBA world, and I had a question on sourcing a white label product from a Chinese manufacturer. Let's say you put a lot of effort and time into a product, what stops the supplier from jacking up the price once your product takes off and you want to reorder but they can see it's doing really well?
Perhaps you could do a video in more detail on the sourcing process? Thanks again for all the amazing info! Keep up the good work!
Thanks for the support. I guess there isn't anything to stop your supplier doing that, however, there are usually many suppliers for every type of product you will find on Alibaba so if they put the price up it would be very easy to go to a different supplier.
hey Darren....thanks for the great video.
for some strange reason i can't find the seller information anywhere on the listings....did I miss something?
where can i see the details of each seller?
Great minds, I literally just did a video for this one the course! Given my experience with “overseas” competitors, I’m not sure if having all International competitors is a good thing !
Are you promoting your course in my comments? Damn competitors and their dodgy tactics
Excellent video as always. Hope to launch my first product this summer. I'm a photographer and would always be interested if you ever do 1 on 1 sessions.
Thanks Carl, yes I do offer training calls - please drop me an email darrenlynchfba@gmail.com
Nice Video. So true that Chinese listings aren't optimized as much as UK ones which means they stand out. When you say you don't use software for product research do you just search manually or?
Thanks Jack, I use a number of different methods for finding products and then us JS Chrome extension for analysis. Here are some of my fave manual methods czcams.com/video/qQ2ZdBrDnaM/video.html
I have been using JS web app and the chrome extension but i've just actually cancelled the web app (subscription based) and will try other methods to find products.
Wise choice Beave, good luck with the manual search!
Sometimes you just have to go with that gut feeling.
Hi Darren, I will shortly be launching my first product on amazon and i'm trying to figure out the barcode rules, EAN, FNSKU etc. I've done some research and many posts / forums point me on the direction of GS1 barcodes? Can you please advice? Thanks Jamie
You will need a GS1 barcode to create your listing in seller central, Amazon will then issue an FNSKU which is applied your individual product (the GS1 does not need to go on the product).
Liked the video Darren! Could you tell where can I find very good photographers studios or just someone who knows how to do a real professional job when it comes to product images? Do you think I can find someone that good on platforms like Fiverr?
I really want my pictures to stand out from my competitors and I'm willing to pay more for a professional level
Thank you for the video!
I would recommend finding a local photographer (so you can be present for any lifestyle/location shots) with a good portfolio of product photography. I would avoid Fiverr for photos unless the provider has a good product portfolio.
Yeah, I think the advantage would be market knowledge as opposed to price with the Chinese. Thanks a lot!
Which site would you recommend to do product research on for private label product ?
Amazon :-) Combine that with the Jungle Scout Chrome Extension and you will be able to do all the product research you need!
Noticed yesterday they are now putting uk in there company names came across a few for example a dog chew toy had a company name chewtime UK and had address and shenzou
Cheeky gits, they really will stoop to the lowest level!
i've just started to sell on amazon I haven't done any private label products yet but will do in the future is retail and online arbitrage also wholesale okay to pursue on amazon to build my capital until I have more capital a private label product?
Yes that sounds like a good plan, it is much easier to succeed at FBA if you have some good capital to start with.
@@FBA-Elite thank you:)
Not only your guys suffering chinese sellers' impact with cheaper price products. we too. As power tools manufacturers, we joined amazon USA since 2019. In first half year, pretty nice, we win market fast by our quality products, but we suffer lots of new chinesse sellers coming with cheaper and cheaper price , which make our organic ranking in dangerous. Their price is even cheaper than the price i can get in china. since, they are buying from lower-level suppliers
Chinese sellers are most rich people. They don't need to make any money. They keep losing money to sag their competitors. Can you compete on that?
don't sell the products, which other Chinese sellers are also easy to source and easy to enter. Lightweight, easy sourcing in Alibaba products is bad products as the target. Other products would be niche products for local sellers. such as nicely designed with patented, heavy-weight equipment , complex technology with nice after-sales service center required.
Good video! Chinese sellers are here to stay! We have to ensure we add value and better branding photos etc Do you find your sales on amazon drop in summer time? Mine have dropped back but well stocked for 4th quarter
Spot on Paddy! This is my first summer selling on Amazon so I'm not sure what will happen, I do expect a slow down in July/Auguest when everyone goes on holiday.
Hello
They can sniff out all the trends and hot selling products faster you can get these products up in the market place. Plus most of the products are from there so why they've gotten all the advantages and close product sourcing locations. Once they invade the market it is over and people are expecting to pay less and less til there just pennies to be made unfortunately
All of those are great points - it shows how important it is to use your home market advantage to add enough value to your product that you aren't part of their price war.
Definitely true, I am based in China and there are multiple Chinese ERP/Apps which foreigners use to connect with their stores as well, and they re-sell the big-data to local Chinese who pay for these 3th party ERP systems with hotselling items in a flash, and all organized. World needs to wake up, as long as they are allowed to sell on our open-markets it will be like this.
I don't even want to begin about kickstarter projects flooded by Chinese to sniff out and already start producing before the foreign seller has his funding and is beginning to sell. :)
Naa you still can't beat them as 90%of stuff coming from China and this will clearly tells thm what's in demand
Hi,i am honest agent for uk. I need Chinese seller.are you chinese seller?