Chapter 31 The Home of Heroes (5,000 Words, Please Subscribe)

[Chaoqun Group] is the main technical partner of [Amazon] smart fitting rooms, and it is the most critical technical partner.

Although [Amazon] and other large e-commerce giants are trying to decrypt [Chaoqun Group]'s [Audition] software, there has been little progress in the past few years.

Because of this, the relationship between [Chaoqun Group] and [Amazon] Company cannot be said to be incompatible, but it is almost the same.

If such an important partner wants to open a store on [Amazon] to sell its own products, even if it is a product that has nothing to do with clothing, [Amazon] will fully support it, and there will be no shortage of relevant traffic exposure.

When selling goods on an e-commerce platform, the issue of delivery cannot be ignored, especially for this kind of cross-border e-commerce trade.

On [Amazon], there are two delivery modes, namely FBA mode and FBM mode.

The first is [Amazon] warehouse delivery, and the second is seller self-delivery.

Self-shipping means that [Amazon] only serves as a sales platform, but sellers need to solve the work of delivering goods from China to buyers. FBA represents the preparation of goods to [Amazon] warehouse in advance, and then after the order is sold [ Amazon] is responsible for delivering goods from [Amazon] warehouse to buyers.

Regarding the FBM model, which is the self-delivery model, it is relatively simple. You only need to hand over the goods to the export trade, and the export trade will take care of the rest.

However, FBA is relatively complicated and error-prone, because [Amazon] is not responsible for customs clearance and delivery services from China to [Amazon] warehouses. Sellers need to handle customs clearance for delivery from China to overseas [Amazon] warehouses. , customs clearance and tax payment issues.

To put it simply, the biggest difference between the two methods is that FBA sends the goods to [Amazon] in advance in self-built warehouses abroad. The advantage is that the time for goods to be delivered to customers is short, and any problems that arise later can be solved immediately. Disadvantages: The investment is too large. Customers who generally want to start a business or open a store cannot afford it due to investment issues, and the goods are not sold and are overstocked in the [Amazon] warehouse.

FBM model self-delivery model means delivering goods by yourself. Advantages: small investment, low financial pressure, no need to worry about the backlog of goods abroad. Disadvantages: The delivery cycle is long, because the logistics cycle from domestic to overseas is relatively long. Since individuals ship goods by themselves and are not familiar with foreign packaging rules, it is easy to cause problems with customs clearance.

[Chaoqun Group]’s first choice is of course the FBA model. Customs clearance issues that are troublesome for ordinary Chinese e-commerce merchants are a trivial matter for large companies like [Chaoqun Group].

Although the FBA model has some obvious disadvantages, for example, sellers who use FBA services need to store goods in the FBA warehouse in advance. FBA charges monthly inventory storage fees for all inventory. If there is a backlog of inventory, any inventory that exceeds six months will be charged. For slow-moving items, additional long-term storage fees will be charged.

In addition, sellers use FBA to ship goods. When customers choose to return goods, the goods will generally be returned to the FBA warehouse. In most cases, FBA determines that the returned goods cannot be sold again. For returns, whether the seller chooses to entrust FBA to send it back or destroy it, he will need to pay a sum of money.

Because FBA provides buyers with more convenient return services, compared with [eBay] and [Etsy], [Amazon] has the highest return rate, reaching 3%.

However, this current model is indeed the most suitable for [Super Group].

Don't think that foreigners are all businessmen.

Without a flexible business strategy, [Amazon] would not be able to get where it is today.

When it comes to important partners, especially irreplaceable partners, [Amazon] has a very flexible attitude.

With [Amazon] giving the green light, in June 2019, [Superhero Group]’s online store was successfully launched. The name was given by Wu Siyuan, and it’s called [Superhero house], which translates to [Hero House] , behind it is a metaphor for the special effect of [Snow Banana Milk], but no one can see it yet.

Wu Siyuan still attached great importance to this project, and ordered Su Shixian's terminal retail division to be responsible for it together with the "Four-Armed King Kong" hidden behind the scenes.

Not to mention the business that Su Shixian is responsible for, [Four-Armed King Kong] used his technical ability to sneak into the [Amazon] server quietly and become the only product of [Hero Home] without leaving a trace. ——[Snow Banana Milk] Drainage.

For e-commerce, traffic is sales, traffic is money, and traffic is the password to wealth!

With traffic, even if you sell a fart, curious people will pay for it. If you inject more soul stories into this product [fart] - for example, this is the last fart left by a fairy for her ex-boyfriend. The story - maybe it can be sold at a high price, just like the original smell of the stewardess, it can be sold for several times the price after being worn and resold, so a lawsuit is nothing!

Back to business.

If you want to create a popular product on the [Amazon] platform, you need to do several optimizations, such as determining product positioning and improving the product matrix: such as setting all products in the store to attract traffic, profit products, popular products, seasonal products, etc. wait. After having a clear positioning of all products, you can save a lot of energy for subsequent promotion.

Of course, [Hero Home] only has one product, so there is no need to consider this issue.

However, product [listing] optimization is essential.

[Listing] is the most important channel for buyers to learn about products. A good [listing] can promote orders and make sales better and better. The optimization includes: title, description, picture, bullet point, etc. It also needs to include keywords that are used by users in search, so that it has a greater chance of being displayed by [Amazon] and discovered by users.

To put it bluntly, [Four-Armed King Kong] can divert traffic to his own products, but the problem is that he cannot force buyers to place orders. In other words, he can do this, but it is impossible to do it!

Therefore, product [listing] optimization is very important. This aspect is also done by [Four-Armed King Kong], which comprehensively considers various factors, especially the preferences of North American consumers and other factors.

Although it is not exceptional, it is quite satisfactory and cannot be faulted. That is enough!

……………………………………………………………………………………………………………………………… …

In China, a 500ml bottle of [Snow Banana Milk] costs 12 yuan, which is about 1.9 U.S. dollars when converted into U.S. dollars.

However, this is terminal retail. On the e-commerce platform, it is definitely not allowed to be sold like this. It is sold according to standard boxes.

In China, the standard boxes of [Snow Banana Milk] are all 12 pieces. After all, the wholesale price of a box is 122 yuan, which is more expensive than [Red Bull] and [genetically modified food]. The owner of the terminal retail store must take into account Acceptance.

However, taking into account the consumption habits in North America, the [Snow Banana Milk] launched by [Hero Home] comes in a standard box of 24 bottles and is priced at $38.99 on [Amazon]!

The price is exorbitant!

Buying boxes of cans of Coke in American supermarkets only costs about $6, which translates into about 25 cents for a can of Coke.

Even at retail, it’s only about $1.

On average, a bottle of [Snow Banana Milk] sold by [Chaoqun Group] costs US$1.6.

This is still the price of a box. If it were sold in a US retail store, the price would be doubled.

No matter how rich the Americans are, they can't accept it!

What's more, [Snow Banana Milk] is not famous in the United States, and it is not on the list of drinks that Americans like to drink.

The drinks that Americans often drink include coffee, various beers, and various carbonated drinks.

The sales volume of the juice category can only be said to be okay.

Therefore, [Chaoqun Group] does not want the products to be unsold and piled up in [Amazon]'s warehouse. In the end, they will be charged storage fees, and finally have to pay [Amazon] to destroy them after they expire.

At this time, you can’t be cold-blooded and make proper use of the various promotional tools provided by [Amazon].

Otherwise, [Four-Armed King Kong] will attract traffic, but the conversion rate will be poor, which is meaningless.

[Amazon] has a variety of promotional tools, such as [Coupons], [Flash Sale Events], [Seven-Day Events], [Exclusive Discounts] or other promotions.

After a meeting and discussion, the staff of the [Hero Home] project team finally selected the [Seven-Day Event] as a promotional tool.

This promotional tool has several benefits. First, it can keep the product exposed for 7 days. Second, it can quickly increase sales. Third, it can clear the backlog of inventory. Fourth, it has a "limited time sale" badge, which can increase high click-through rates. Five It is to increase the traffic of the details page.

Of course, it is not easy to sign up for this [seven-day event]. It has certain qualification standards.

First, the product must have a sales history on Amazon and a rating of at least 3 stars. Newly listed products are not eligible.

Second, professional sellers with at least 5 seller feedback ratings every month and a total rating of at least 3.5 stars.

Neither of these two conditions is met by [Snow Banana Milk] from [Hero Home].

But as we said, foreigners' bodies can sometimes be very soft.

How can there be any real justice?

[Super Group] is so important to [Amazon], and [Amazon] currently does not have the ability to counter the opponent. This leads to [Amazon]'s attitude towards [Super Group] to be vaguely fearful.

After all, there is more than one multinational e-commerce company [Amazon]. Once [Chaoqun Group] terminates its cooperation with [Amazon] and instead strongly supports other multinational e-commerce companies, consumers will vote with their feet. Don’t think they will stay at [Amazon] because of their feelings. 】.

But if [Amazon] doesn’t have customers, merchants won’t come.

Even if [Amazon] lowers the threshold to the point where just one product can be launched, not many merchants will sign up!

[Amazon] will be dead at that time, so what’s the point of talking about justice and fairness!

So, what if [Snow Banana Milk] doesn’t meet the conditions? It can be listed if conditions are created. So what if the registration activity needs to be planned three weeks in advance? [Amazon] directly took down the latest issue on the grounds of [product non-compliance] As an event product, [Snow Banana Milk] was promoted.

However, there is no additional traffic entrance for this [Seven-Day Promotion] event, but [Amazon] said that providing the necessary commission fees will bring a lot of exposure to [Chaoqun Group]'s products.

Coupled with the secret promotion of [Four-Armed King Kong], there is no need to worry about traffic.

After final internal negotiation at [Chaoqun Group], [Hero Home]’s [Snow Banana Milk] participating in the [Seven Days Promotion] event will be priced at US$7.99 per box. On average, a 500ml bottle of [Snow Banana Milk] will cost less than to $0.33.

The price is simply too low to look at.

But there is no other way. [Snow Banana Milk] has no reputation and a large inventory, so we can only tearfully reduce the price.

June 10, 2019.

[Snow Banana Milk] officially launched the [Seven-day Promotion] event.

The staff of the [House of Heroes] project team nervously looked at the data in the background.

[Amazon]’s traffic is still very strong.

As soon as the campaign was launched, the sales volume shown in the background data began to increase.

At the beginning, the growth rate was in the tens or tens, and then the curve rose sharply, reaching one hundred, two hundred, and the highest reached thousands. Then it fell back, and finally stabilized at a growth rate of hundreds or hundreds.

At the end of the day, [Snow Banana Milk] sold more than 2,000 boxes on [Amazon].

This result is definitely not bad for a new product.

The reason for such a result is that [Snow Banana Milk] was mixed into the related search page of [Milk] on [Amazon].

Although as more and more Americans begin to shift to a new lifestyle, not only milk itself is abandoned by many people, but also new products in [milk substitutes] are rapidly emerging.

Data from market research company Nielsen shows that in the past 2018, sales of oat milk in the U.S. market surged by nearly 50%. In contrast, the overall sales volume of the plant milk market increased by only 9%, with the sales volume of almond milk, which has the highest market share, increasing by 11%.

From the perspective of plant milk market share, data from another market research company Mintel shows that in the U.S. market, almond milk ranks first with a share of 64% in the plant milk market, and soy milk ranks second with a share of 13%. Coconut milk ranks third with a share of 12%.

The booming demand for plant milk is in sharp contrast to traditional milk. The above statistics from Nielsen show that milk sales in the United States fell by 2.8%, with skim milk sales falling the most seriously, falling by 16.5%.

Data from the United States Department of Agriculture also shows that in 2016, traditional milk sales fell by 17%. Since the 1970s, per capita milk consumption in the United States has fallen by 35%.

However, the per capita milk consumption of Americans is still very considerable, reaching an average of 67.5 kilograms.

The good thing about [Hero House]’s [Snow Banana Milk] is that it not only carries the milk sign, but also has the label of plant milk, plus [Snow Banana], a unique [Winter Banana] in the world Gimmick, so the conversion rate is not bad.

On the second day after the event went online, the sales of [Snow Banana Milk] reached more than 3,000 pieces.

On the third day, 3,500 units were sold.

The fourth day...

After seven days of promotion, more than 30,000 pieces of [Snow Banana Milk] were sold, and the revenue was only about 200,000 US dollars. The gross profit may be less than 50%, and the net profit is even lower, maybe less than 100%. Ten out of ten.

The main reason is that sales volume is too low and costs are difficult to average.

There are more than 30,000 pieces of [Snow Banana Milk], which only accounts for about one-tenth of the 300,000 pieces of inventory in [Amazon]'s warehouse.

After another round of internal discussions, [Chaoqun Group] decided to continue the event for one month.

For other e-commerce players, this is not a simple matter.

But for [Chaoqun Group], it cannot be just a matter of a few phone calls.

[Snow Banana Milk] continues to participate in various activities on [Amazon], and its sales have begun to grow steadily.

The highest sales day reached 10,000 pieces.

On average, it reaches more than 5,000 items every day.

In one month, [House of Heroes] sold 200,000 pieces of [Snow Banana Milk] and collected more than US$1.3 million in funds.

Converted into RMB, it’s only over 8 million yuan.

It’s just a small amount of money for [Chaoqun Group].

However, [Four-Armed King Kong] discovered during monitoring that the search volume for [Snow Banana Milk] on the [Amazon] platform began to show an upward trend, and the repurchase rate indicator of [Snow Banana Milk] was also frighteningly high.

[Four-Armed King Kong] tracks each order, enters various terminal devices, and investigates the acceptance of [Snow Banana Milk] in the North American market.

It found that consumers in North America who drank this [Snow Banana Milk] were full of praise for its taste, especially its unique ice-fire taste, which made it popular among consumers.

Some consumers can drink more than ten bottles of [Snow Banana Milk] in a day.

For them, one box of [Snow Banana Milk] is their consumption for two days.

Not only adults, but even children are particularly obsessed with this new product, even more so than Coca-Cola.

American parents would rather their children drink more [Snow Banana Milk] than unhealthy cola.

This is the source of the extremely high repurchase rate of [Snow Banana Milk].

[Four-Armed King Kong] You can conclude with your eyes closed that [Snow Banana Milk] will definitely become popular in North America. Americans don’t value [GMO] and [Non-GMO] so much!

After receiving this report, Wu Siyuan made a decision and asked [Hero Home] to cancel the promotional price of [Snow Banana Milk] and return it to the originally set price of US$38.99.

The high price immediately caused the sales of [Snow Banana Milk] to plummet.

The original sales volume of four to five thousand pieces a day suddenly dropped to four to five hundred pieces, and then continued to fall to more than one hundred pieces.

When the staff of [Hero Home] originally thought that [Snow Banana Milk] would plummet, the sales of [Snow Banana Milk] began to rebound, from more than 100 daily sales to more than 300, to more than 500, and finally remained the same. With daily sales of more than a thousand, it is still growing slowly and steadily.

According to this kind of sales volume, [Hero Home] can generate more than 60,000 US dollars in daily revenue, and can recycle more than 1.8 million US dollars in a month, which is much higher than the sales amount of participating activities.

It’s self-evident how to choose!

What the staff at [Hero Home] don’t know is that behind this sales volume, [Snow Banana Milk] is known to more and more Americans.

One day, [Snow Banana Milk] will truly experience explosive growth!

Wu Siyuan knew that day would not be too long!

The nameless ring in his hand keeps flashing, indicating that his influence is growing.

At this time, there was a flash in front of his eyes, and it was the ability to [predict the future] that was activated again.