Was it difficult to start Amazon? How difficult was it?

For beginners who want to start a cross-border e-commerce platform, it is very important to choose a good platform. Because some platforms are suitable for large sellers, but not for small sellers. If you are a novice, you should be more cautious. Is it difficult to start on Amazon?

Relatively difficult

How hard is it for Amazon to do this?

1. A large number of sellers are pouring in, and traffic is becoming thinner

In 2019, the number of new sellers on Amazon's major sites around the world was 1.03 million. In other words, on average, 2 new sellers entered Amazon every minute.

Although the official data for 2020 has not yet come out, the number of sellers has been increasing sharply, but the platform pie has not increased at a rate that matches the number of sellers.

Therefore, it is reasonable that the traffic volume decreases. After all, it is obvious which one gets more, a 7-inch pizza shared by 3 people or a 10-inch pizza shared by 10 people.

2. Increased operational risks

The following series of reasons are actually rooted in the first reason. Because the traffic volume decreases, the operation becomes more difficult, and because the operation becomes more difficult, the operation risk increases.

Amazon sellers now face two major difficulties:

The first major difficulty is that after the products are put on the shelves, they cannot be sold and there is a problem with sales.

The second biggest difficulty is that after the product is put on the shelves, it sells well, but there is a lack of funds for subsequent expansion.

The current FBA model promoted by Amazon occupies too much capital. FBA warehouses have to ensure that there is always a supply of goods, so they have to keep a batch of goods in stock. Factories have to ensure supply and pre-produce a batch of goods. The goods floating in the sea are to make up for the past goods. All the money earned from these is in them.

During the operation process, if you encounter problems such as store closure, product removal, infringement, etc., it will be even more troublesome.

Therefore, for those novice sellers who want to enter the industry, I have always emphasized that everyone should first have a deep understanding of this platform before entering. Don't think that you can make money here just by lowering your head based on some stories of getting rich.

First, spend a few months to explore the market situation and platform rules, and then combine your own actual situation to see if it is suitable for you.

3. More funds are needed

Amazon now has a lot of services, including on-site advertising, off-site promotion, fake order evaluation, and so on. Each service requires funding. In the past, there was no need for any promotion. Just launching a product online meant getting orders.

Therefore, Amazon is slowly developing in the direction of heavy assets, which is one of the reasons why Amazon is becoming increasingly difficult. At this time, what sellers need to do is to carefully select service providers and service resources, and make sure that the money spent is truly effective.

Generally speaking, it is difficult to start a business on Amazon. And it is not only difficult to start a business on Amazon, but also on other platforms. After all, it is difficult to start a new store with zero foundation.