In this episode, we explore the evolving strategies of Chinese sellers, particularly their dominance in supply chain management and logistics optimization. We examine how these sellers are leveraging cutting-edge technologies and streamlined processes to reduce costs and improve product quality. The discussion also touches on Amazon’s efforts to enhance its supply chain and packaging efficiency, offering valuable insights into how sellers can optimize operations and remain competitive. This episode provides key takeaways on the future of e-commerce, emphasizing the impact of Chinese innovation on global logistics and marketplace trends.
Topics Covered in this Episode
E-Commerce Trends & TikTok Shop
TikTok’s Influence on E-Commerce: TikTok Shop is driving significant sales growth, with AI tools boosting operational efficiency.
Amazon Supply Chain & Advertising
Optimizing Amazon Logistics: Sellers are focusing on packaging and shipping cost optimization to maintain profitability.
TikTok Shop Strategy & Success Stories
Live-Streaming & Diversification: Brands find success with TikTok Shop’s live-stream model, showing better engagement than Amazon.
Supply Chain & Logistics Efficiency
Packaging & Quality Control: Chinese sellers are excelling by investing in optimized logistics and quality management.
Conclusion & Q&A
Q&A Session: Addressed audience questions about logistics, packaging, and e-commerce strategies.
People / Companies / Resources Mentioned in this Episode
√ Can’s VIP Page
√ Justin’s VIP Page
√ Easy China Warehouse
√ Webinar Event Page
√ Cross Border Summit 2024
Episode Length 1:03:25
Thank you Can & Justin for being on the show, and thank you everybody for listening in.
Download Options
- Direct Download: Right-click here and click “Save As” for a direct download
- iTunes: Listen and subscribe on iTunes for free!
- Android: Check out Android Options or Listen via Stitcher Internet Radio streaming
- If you enjoyed this episode, leave a positive review on iTunes, & more (directions here)!
Show Transcript
[00:00:00] Episode 439 of Global from Asia. We are talking about becoming a Chinese seller, learning with a couple great Chinese sellers here and global from asia.com/chinese-seller. Let’s tune in now. Welcome to the Global from Asia podcast, where the daunting process of running an international business is broken down into straight up actionable advice.
And now your host, Michael Micheli. [00:00:30] Thank you so much for listening to her, maybe watching. I got a new HD webcam here. My wife always says, get a better camera. So hope this is a little bit better if you’re watching me, but I think a lot of, listen, I hope you enjoyed last week’s Memorial of Rico, another podcaster, friends, still thinking of him.
Rest in peace my friend. This week we got a show about learning about being be learning from Chinese sellers. I remember when I first came to China, 2007. I was teaching a lot of [00:01:00] them or sharing with them just showing them my eBay and my website and things like that I remember. But now of course, Chinese sellers have learned a lot, become really good, especially at supply chain product development.
So we have Justin Lin, my partner, and the CEO at Easy China Warehouse, as well as Ken Chan, influencer experienced seller, uh, community builder. Also gonna be both at Cross Border Summit in Chiang Mai, November 3rd and fourth and fifth. So I would love to see [00:01:30] some of you there learning from them and connecting and making some deals.
So we’re gonna go into this recorded webinar. I we did. It’s gonna be in video mode. It might be best to see this in video mode, but we do put this in audio mode because I know a lot of you’re on iTunes and Spotify and others and listening. So you might wanna pop into the, the website@globalinformation.com slash Chinese seller to maybe skim through the video at the the minute mark to see some of the screenshots because Ken and Justin are [00:02:00] sharing some slides.
But I do believe you can get the majority of it from the audio only. Let’s tune in and hope you enjoy this format. I’ll also do a little bit of intro about G Masia and other parts. We’ll just keep you the whole, a whole raw parts with some good q and a too. Let’s tune into the show. Are you looking for USA banking solutions for your e-commerce business?
I am proud to say mercury.com is supporting the podcast here, third year in a row at Global from Asia. And we’re proud to say, ’cause we use ’em ourselves for many of our own [00:02:30] Amazon brands and e-commerce brands and joint ventures with our US structures. And they’re super easy to do online application, no fees, and they have great customer support.
Have helped us with trouble with Amazon Seller Central over the years about some receipts and statements and everything like that. So we’re so happy to say thank you Mercury for supporting our show, being a great service and supporting other e-commerce sellers. We’re really proud to say they’re a sponsor here.
And we also have a video tutorial as well as an overview and a special link [00:03:00] with a little bonus for you as well for us under certain conditions. Check it out@globalfromasia.com slash mercury for that information. Thank you for listening and thank you Mercury. So welcome everybody for a Global from Asia Community Webinar.
We have a great session today. Ken and Justin both have some content to share, knowledge to share. It’s also meant to be interactive, so please don’t be shy. So Global from Asia started as a podcast in October, 2013, over 10 years ago. It’s always been how about helping [00:03:30] international small businesses to be able to do cross-border business in Asia?
And we of course do these live events, online events and, and more. So we have a, a whole network of different things that people can do. We have our free content, like today’s webinar. We also have a membership. We have our, our gladiator programs and joint ventures, and we have our events like Cross-Border Matchmaker, we do.
And then our big one is the Cross-Border Summit, which is coming this November 3rd, fourth, and fifth in [00:04:00] Guang Jo China. Both can CH and Justin Lin will be there with us as well as many other amazing speakers. So you’re right now in our software where we do all the table mode. So we host these for these webinars.
We also host these for our member community meetups where you can connect with each other and, and make some relationships. It was also very popular during COD, but even after Covid, we’re still using these, but we love the in-person events, of course, in-person events is everybody’s favorites, [00:04:30] and we wanna have everybody level up with our G-F-A-V-I-P community membership.
But don’t be scared. Why are you here? I’d love to hear why some people are here. If they could put in a chat what your questions are, what you’d like to learn tonight. And before we get into it, some announcements, we have our events.global inform asia.com. That’s where maybe you found out about today’s webinar.
We also list about meetups, small events, big events, everything there. You can check it out. We even put some partner events there and other things [00:05:00] happening. So check out events.global from asia.com. We also have a Google calendar now, so some people, especially me and others, use Google Calendar. You can click that link.
Maybe Sally, if you could put that in a chat or let me know If you need my help, I can put that after. Subscribe to our Google calendar so you can see all our upcoming events. But of course, please make it to our Cross-Border Summit is a paid event. It’s down in, uh. Chang Mai, Thailand. [00:05:30] We had one last year.
They had a great time. And it’ll be again this year, November 3rd, fourth and fifth with speaking and networking and business development together. Some pictures from last year and also we’re adding Cross-Border Mastermind, which is a premium villa and yacht down in Pettet on the ocean. So we have the nice villas locked together for about max 20 people.
We already are getting towards half [00:06:00] capacity right now, and you can enjoy a very luxurious environment with top sellers and people in our community and a yacht. We have a full day yacht on one of the days with a slide and jet skis and, and drinks and everything. So it’s gonna be networking and, and, and a lot more things.
On top of that, we’re gonna have our Flippa and global Esia. Exit road show, the Asia Road Show Six cities. So it’s gonna be in these six cities starting in [00:06:30] Chiang Mai, Tuesday, September 24th, Bangkok 26th, ho Chi Minh, Vietnam on the first, and then Hanoi, October 3rd. Then we come up to Hong Kong October 8th after the October holiday, and then Shenzhen in October 10th.
Alicia is our partner. She helped us get a great venue there in Shenzhen. There’s actually a, it’s gonna be a, all of these cities are gonna be really amazing. If you can make it to more than one, you candies are gonna be actually free and they’ll be drinks and and [00:07:00] networking. A really great opportunity to participate with us there.
And also a startup I’m working on is Hamza. It’s a decentralized e-commerce blockchain based marketplace. So kind of like an Amazon or other marketplace, but using blockchain technology. It’s a very new early stage startup. We’re not yet released, but hopefully as we get closer to Cross-border Summit will be live.
If you’d like more information, please let me know, but let’s work together to make some money, increase our businesses, build great products, [00:07:30] and it’s, it’s not easy, right? There’s all the, I don’t really like those YouTube ads that have the Lamborghini and the guy that does drop shipping outta the express products and is a millionaire in one month.
Maybe he did it, maybe he didn’t. But I mean, no, most people I know worked really hard to build their business. It’s, it doesn’t happen overnight. You gotta show up every day. You gotta keep improving and you gotta, you gotta just get stronger. Just like the gym, just like your diet. You have to continuously improve yourself.
So [00:08:00] let’s get into the main events. I hope that was a little bit fun, little intro we do to these sessions and I will stop sharing my screen. Thanks everybody for sharing the links and, okay. New Orleans. Wow, Trish up early, early in New Orleans. I think 7:00 AM Thanks for making it. Okay. Justin, do you want to give a little bit of intro too, and then we’ll go into can’s, main events after.
So another introduction about [00:08:30] logistics. How you doing? Sure. Um, I’m good. Yeah. I’m going to guys share my screen. Yep. Yes. Yeah. I’m going to share if you guys some like, not the, not shipping information, like how Chinese do do it. Especially like some computer like, uh, Chinese seller, they have to compete with the price because Chinese seller say every, not just the, the cost, [00:09:00] also my shipping cost in every, every sector, they, they know how to save the cost and then, so that’s why they, the price so cheap and they still can profitable not just because the product chip, but also they also, the shipping fee also make it cheap, not.
Cost. So yeah. And now, so let me introduce ourselves is China warehouse and we [00:09:30] provide those end-to-end shipping solution. Some we provide the service like e warehouse shipping, F-B-A-F-B-A following. So yeah, we, we have been doing this for like about 10 years. And yeah, the, the topic like how we can, like some made a cost cheaper and not just use some traditional [00:10:00] way because I most, most of them, like they don’t know some, like some chip, some should are trying to sell, using now and how they like made a cost sell chip.
And so I’m going to share with you guys. So, yeah. Now when, when some, some people will not, so, so many, uh, sell, they want to do the Shopify, Walmart, eBay, do the job shipping. They [00:10:30] always think that just from China, actually we use that, that will be work, but not now. They not like ready walk. Like especially you can pick with try Chinese Tower because like for the shipping fees, like shipping Tide, it would times more longer.
And then the shipping fee also like use it I to, to US Australia, the shipping fee is not like cheap [00:11:00] to like the cost is not chip, like shipped by sea. So, so now they more Chinese sell, they will not use OC. Warehouse, like they send the inventory to US warehouse three pl, like Chinese pls. I need to like, like say that because Chinese three PL is like most, the price company is cheaper than other and also [00:11:30] UK, Australia, three PL.
And so now they are more, more China. They will combine this two way to, to ship from China. Not just like all use like three p, no three PL in OC house or, or just like use one way they’ll come by together, but, and, and that’s, and normally they will based on their, their data [00:12:00] to do that because Nice. For those D two C cell, they will based on their cell data, for example, if percent.
Is go to us and then like 3%, 30% to Australia, like the rest, 20% is globally. And then you can, you can like use ship to the, like the [00:12:30] 50% you can ship to us and 30% you can shoot to Australia, the three P warehouse and the rest you can ship from China. And in this way you can load down your cost and also make your customer happy because Ofties more, faster, faster than shipped from China.
And also the cost will be cheaper than their, all the orders shipped from China. Yeah, [00:13:00] so that’s most the Chinese cell doing now, but as I know, still have my French, a lot of cell just use the, from China or to only use the three PL in, in the local country. And that will cause you my outfit. When you, when you sell out inventory, you still might wait for the shipping to the, to the local warehouse.
If you only use one way, if you combine these [00:13:30] two together and you, you need to worry about your sell inventory because you still able to, after the Chinese feature, uh, produce the product and then you still can build from China to your customer. And in the meantime you can do a page to your, your three to the three P warehouse.
And then use the Noco CP warehouse and send to the your customer. [00:14:00] So yeah, this, this, this have a like, main thing as I know, amount of one cell, they don’t know and they didn’t combine these two ship way together. Only use one way and yeah. So, and the second, so, and the six second topic, I want to talk about the a WD as a GL may not still good for a [00:14:30] FBA salary because I, from, they saying is a, W is is good, but not for all the a w all the BA because that night we can see it in this, in, in this Schneider.
And if. So product, finish, finish the classroom, and then we send to, we need to the, normally the, now we send some to send [00:15:00] to a WD warehouse distribution first, because they send, the inventory fee is shipped and so they, it will, and then if one, they first out the sell out the inventory, A-W-A-W-D can send the inventory to FBA, but you still need to pay the cost to a WD and then pay, still pay the inventory fee.
So [00:15:30] if you, you, you have, my only has three amount, amount, this, this three amount inventory. Why you send to a WD? Because my, you, you can just send, send. When you not use stability, you just send to the little FBA because you only had three month inventory. And you don’t get to pay extra a WD fee like the a w inventory fee.
And also from a D to FBA, you still [00:16:00] have to pay the shipping fee. So if you just, if it, but if it’s from, they don’t have the, they are always all old warehouse or three three or didn’t use my three P warehouse and the a WD may fit them because they have nice after feature produce, like one year inventory.
So they need some place to store their [00:16:30] inventory. So, and in this case, a WB made by a good solution for this type kind of seller. But if you normally most sell not nice deals one year or. I mean, yeah, I as I know only nine fields that would do that because if you produce enough, the feature will give you a better price.
So yeah. But it also very risky thing if you produce [00:17:00] too much inventory. So it, if we can very easy to calculate that, right? So from a, if you use HDR past a WT and you still need to pay a FBA fee because use a WT not going to say your FBA fee. So they just might note down your, you, the inventory fee will, will be cheaper in a WD but you still need to pay [00:17:30] because you, you still need to from a send your inventory to FBA.
That not my, that’s easy to calculate, not my a a w, not my replace the FBA fee. So. So this is not my, so for every F-F-B-A-C and yeah, this my two main thing I want to share. So, normally most Chinese, they sell they FBAC. They [00:18:00] don’t, not, they, they are not use a WD because like I said, they don’t, they’ll not produce so many inventory.
Even though, even though they may produce a lot inventory, they will in the China, uh, warehouse because of China inventory will more cheaper than a inventory. And also when they, they, they only spend three months and every month like selling [00:18:30] the one month or three months inventory to FBA. So they will just like keep the inventory profit running, not like almost sell out.
And then the inventory just arrive to the machine warehouse and cheap selling. So it’ll like, yeah. And then they, the cost will be read. No. So yeah, this one thing I need to share. So no, if you thing still saying a WD is [00:19:00] best, you need to do the calculate, do your math. Great. Yeah. One to share. And yeah, if you have any question, you feel maybe I thank you.
Yeah, thanks my, yeah. Thank you so much Justin. So, just also some people don’t know, we’re also a partner with Justin in Easy China Warehouse. Our company at parent Company at at Global Asia is also an investor. So we would also appreciate anybody’s interest in using that service. [00:19:30] Let us know and reach out to Justin there.
So Justin, you could probably also give people feedback or pricing. I know you want to help, even if it’s not the best to use. Yeah. This warehouse, you probably could help people choose like a WD or, or, or, or, or not, maybe. Yeah. Yeah. Reach out to you. Yeah, if, if you guys have question and want, don’t know what to fit you or not for you, you feel free to contact me and then I will tell you [00:20:00] anything, what’s the best solution for you.
I will do the message for you and we will help you calculate the course. And then, great. Thanks Justin. We’ll also have q and A at the end so people can ask there, and it’s getting more complicated, right? There’s all these new keywords like a wds, just like semi new, I think used to be called upstream, but these, all these logistics services, but it’s important, like you said, the sellers, which cans can have some great content coming up now and there’s lots of different [00:20:30] tactics and tools, but logistics is an important part of that, right?
What do you think, Ken? If if you wanna start to share your slides, you can go ahead. Yeah, sure. I, I actually believe that now logistic is a very important part of the supply chain management. And, and as, as Justin mentioned. China here, especially some advanced seller here in China, they pay a lot attention in logistics, trying to make it more cost efficiency and, and cost effective.
Yeah. And, and also [00:21:00] the, the time efficiency. Yeah. Especially now is the peak season. You must have to delivery all this cost on time within a reasonable cost. So I, I believe that you see China Warehouse is a very good partner. So, so I think everyone can contact Justin maybe later. Yeah. To, to get more information.
Sure. I see a question in Q and a, but I don’t know if Justin sees that, but there’s a tab who owns the goods when they’re in the China warehouse? I mean, another one, I [00:21:30] don’t know. Do you think you should do q and a? Maybe we save this for after Ken’s, or should we do these now? Yeah, yeah, yeah, I think, I think we can make Ken to, yeah, Ken’s got some slides too and then we’ll do q and a for Justin and Ken after.
So, we’ll thanks for putting those questions in. Keep ’em coming. We will prioritize, people can up vote or down vote questions as well. So if you want to make sure one is as first, please check the q and a tab and ask your questions and upvote the ones you like. Alright, Ken, do you wanna go ahead and share [00:22:00] your screen and then get started?
I’m looking forward to your presentation. Yeah, sure. Yeah, let me try to find out my presentation and do the screen share. And can anyone see my screen now? Yep. I see the. Okay, so I’ll, I’ll start here. So, hi everyone. This is Ken Chen. Now the topic tonight for, from me is sharing some latest tactics from some among China seller here in China, especially covering supply and chain [00:22:30] management, TikTok, Amazon synergy and usage of ai.
I will introduce myself first. I am a longtime Amazon seller and e-commerce seller, and I’m also a, here in, in China, I run Amazon TikTok seller community with more than 100,000 members here. And I’m also a consultant for some multimillions Amazon sellers here. And from last year, I, I started another business with another partner about, uh, [00:23:00] some AI show.
Yeah. I will show you in this slide. So there’s topic here. Why, why we, we, Chinese seller, or especially Chinese cross border e-commerce grow so fast and, and they, there are so many good Chinese seller here because here in, in Shezhen and Guango it, they are so core the capital of cross-border e-commerce.
Because here we always have a very good starting environment. [00:23:30] This is two photos I I captured last weekend. We, we held multimillion Amazon, uh, and TikTok shop seminars last weekend in Shenzhen. We invite invited, uh, senior account manager from TikTok, uh, who’s managing some top accounts in TikTok, like this account.
The, the accounts belongs to some seller who are doing like at least 10 million of US dollar per year, uh, in Amazon. And then now they are doing, uh, they started [00:24:00] their TikTok account and already. Do really well in TikTok shop. So a group of people, like 20 to 30 seller. We are together to do a seminar to do summary and learn from each other.
Like this kind of workshop seminars we have almost every week. Yeah. In Sheen, in, in almost every format, not just Chenin, like in Guangzhou, like other cities like I, we will have various of these seminars as well. So this, this is why we can learn from each other very quickly, [00:24:30] and then we grow our business very fast.
And if anyone noticed this image where this image from, I mean, it was the Twitter. Oh, I don’t wanna ruin it for Yeah. Others can put their ideas. Yeah. Yeah. Actually it, it happens in, in, earlier in August, Elon Musk and, and Donald Hum had, yeah, yeah. Yeah. The big gigs life dream in the ex history that the former trade in the, because you, you can see from [00:25:00] this Twitter post from Elon Musk.
About 1 billion view in this livestream. And if you notice what Trump is using, just under his phone, there is a charter. This charter is actually from Anchor. Oh. Next to his tie there is a microphone. This is from a brand based in a city just [00:25:30] next to, uh, Shezhen. And even this cable is also from Sheen Seller.
So it, it’s interesting, right? Maybe did they pay Donald Trump? Did they pay him for that? Is it like endorsement? Yeah.
Yeah, they should pay the sponsor fee. Yeah. So, so that’s interesting. E even charm, he, he thanks to ask China to pay more tax. Right. But even Yu himself, maybe, maybe [00:26:00] just by, by ton, he, he still use some Chinese brand, like, like Anchor, like, like the brand from wan. I, I just want to tell everyone that maybe currently China cannot produce or, or cannot decide iPhone, but from product wise here, yeah.
We, we got a very sophisticated supply chain and we, we evolve the product development very fast. So actually we can produce, we can design, you can develop various of products and this is a base [00:26:30] that 20 seller can do well in Amazon, in TikTok shop and other Econs platforms because we, we are now innovating on products faster and faster.
And these are some brands now already becoming very famous cross platforms. Like, like you can see different brands here. Yeah. And yeah. Yeah. Today, I, I will focus on three points. I want to show everyone some examples or, or some case studies here for some of one sellers that [00:27:00] maybe you, you can take advantage of all, or some experience that you can use in your daily business.
Like the first part is streaming supply chain. From our aspect, just seeing have shared some experience and solution on the logistic parts. And I will share some other experience and, and we are talking about chain search here, not just focus on Amazon. We always try to explore some new channels. I will talk about TikTok, especially because TikTok is really hot this year and have [00:27:30] already gained some solid results on TikTok shop.
And I’ll also show you some AI which help us in our data business to improve efficiency everywhere. So just one chart here, I’m not sure if you can, you can read on this chart. This is, uh, income statement of Amazon of the quarter two in 2024. There is a very significant part here about advertising.
Amazon actually gave 20% [00:28:00] year to year growth on, on its advertising fee, meaning sellers are actually paying much more advertising than ever before. And this part is the third party seller service also increasing 11% year on, on a year basis. So meaning every sellers actually you have to do very well on advertising and you have to try to reduce the third party seller [00:28:30] service fees, which mainly attributed, attributed to your supply chain management.
So this is why supply chain management is so important because it just reflect your profits. If, if you cannot improve on your supply chain management, your profit will will go very easy. You, you, yeah. Even if your revenue is high, but you still can un add money. This is the, the current status. So I want to show you one example of Trump as well.[00:29:00]
You love Trump. So Chinese people don’t like Trump or they don’t like Trump. It seems like you said the trade war, they didn’t like do Chinese people like Trump? Uh, yeah. Don’t, don’t like Democrat or, or either. Maybe they don’t like getting money. Yeah. Each party still, I think third party are trying to text more on Chinese product now.
So, no, I, I show this image is trying to tell everyone how fast Chinese supply chain [00:29:30] reacts. Yeah. Because. When I first saw this image, it was a morning that I, I was in a class. We, we are talking with our, our Amazon students in the class and, and then we, we saw this image in the internet and, and at that time we, we just talk with, we each other.
Maybe someone will take advantage of this image and to make some products and it really happens in just one day. [00:30:00] You can see this product already on shelf, on on TikTok shop. Do you want to show this video on TikTok shop? How they sell this product on TikTok shop? It just bought seven, Sam said, just bought one.
Sam, thank you so much. Hey, guy, I appreciate you. I appreciate you. This is a sales on TikTok shop. I’m not sure you can, you can see this selling quantity. It is 2,200, meaning in less than one day [00:30:30] this T-shirt has. Had already been sold more than 2000 pieces and all this product, they already can be produced in both Chinese factories and some printing on demand factories in the United States.
So this is, I I just, no, it is kind of a infringement. It, this is not what I wanna talk about. Maybe we can discuss this later, but I just want to emphasize that how fast the supply chain from [00:31:00] production, from the idea to production, to delivery, how fast it can react. This is kind of trying big on products.
Trump has a trademark of his name, I think. I think he, he got a license from him, I think. Got a contact. Yeah. Yeah. So I think they just saw one day and then they, they will get this listing off. They, they will, yeah. Yeah. So this is one thing I want talk about is the supply chain circle from [00:31:30] idea to delivery.
Now it is extremely fast. And, and the second part is trans sellers are just try to save cost from every angle. So maybe you, you’ll find some listing, uh, selling at a lower price on Amazon or on other e-commerce platform. You think they are not profitable. But actually if you analyze of different parts of their supply chain costs, you will find they might be profitable.
I I will have [00:32:00] one examples here. I’m not sure if you, you’ll know about the delivery cost of a different products. They, this, this fee will based on the how, how large is the, of the puzzle or how heavy of the, the puzzle and this, how, how, how heavy or how big of this puzzle will be scanned by some machine from Amazon.
The, the machine is called the Amazon could be scan. [00:32:30] You, they, you will find, if you check this report very carefully, you’ll find even the same products. The measurement could be different by the scanning, so you can find, sometimes the delivery is extremely high. You, you can see it, the image in the middle.
Sometimes if, if the, the scanning just maybe scan a product at a larger ways or, or, or a, a larger space. You can see here the same product. The [00:33:00] delivery can cost like five US dollar more than, yeah, it’s the same product. Sometimes it, it is like the delivery is $8, sometimes it is $13. So if you read this carefully, you’ll find, whoa, this is what ha what is happening from the Amazon side.
So if you are a seller, you will try to figure out how can I try to make sure the Amazon cube scan won’t made this mistake, or I will, I will try to. [00:33:30] From south side, we are trying to make the product as small as possible so it can charge less from the delivery side. It can save sneak thickening on the cost, and then even when we set a lower price, we can still become profitable.
So this is a very, this is a cost. So what so I trying to do on this one solution? Yeah. I’m showing you this chart. If the dimension is different, you’ll be charged on a different standard, [00:34:00] on a different price tier. All about this, right? As a seller. Yeah, yeah, yeah. You gotta be really careful. You gotta be really good saying Yeah, the, the price tier if you are in different way or, or different dimensions.
Okay. So some sellers, they, they will try, try to, for example, they were trying to find a box that which is hard that even in that scan machine, it will not. Change the shape. So it will, for [00:34:30] example, like this box, it will stay in the tier, in this one small standard size, it will, it will not exceed to the large standard size.
So in this way, you include, you, you will increase a little bit on the price of the box, but you see the cost of the delivery. And you don’t have to argue with Amazon about the raw measuring. There are many of such solutions from, from the supply chain side of some event sellers. They will have [00:35:00] some very experienced supply chain people to, to review all this process and, and ize it.
To make it, yeah, make it, to save the cost to every aspect. So this is just one example. There are more example about this. Yep. And if I could just add like, yeah, so you gotta do this before, at the beginning, not the end. Right? So when you’re developing your pros. You think about the size? Yes. So I’ve even adjusted some of my products to be smaller.
’cause when you’re designing your [00:35:30] product, you do have to, some depends on the product, but you do have choices about the size. So we always talk about this in our team about the size. So you wanna be aware of your size and then like, I think that’s what you’re saying, but it’s better to be safe than sorry.
So not be right exactly on the line. ’cause if you’re just a little bit, ’cause Amazon, like you said, the scan machine might put you in the higher category, like you said. Yeah, yeah, yeah. You wanna be, you wanna be a little bit smaller. Not exactly. If you’re too close, they’ll, [00:36:00] they, they don’t care. They’ll, they just make it, oh, it’s a $16 fee, not the $8 fee.
Right. And you just pay $8 more because a little bit difference of the size. So this is what Ken’s saying is advanced sellers. Yeah. We always talk about packaging. Packaging is important basically. And, and making sure you size the sizes of your product and the ca categories of the sizes in Amazon. Yeah.
Not also the north packaging. Also, like you need to be careful the master boss because some, [00:36:30] some might, some seller, they don’t know my u now when you reach my, use the UPS to deliver to a machine warehouse you and then they, if you are not like in not 12 page, you, they’ll still charge you 12 page. In this case, you need to like make sure your, your master philosophy in the product is o over way to 12 page.
You, otherwise you will, like for example if you just six page you and then you will need to [00:37:00] still pay 12 page. That’s not, yeah, this tell some seller still don’t know and careful. Yep. Yeah, so this is one example. Yeah. We, we have many more examples of this. We, there’s still many. Yeah. Yeah. Yeah, yeah. Yeah.
We, and again, the theme, the theme here is, right. A lot of people think it’s about the marketings, and I think, I think you’ll probably talk about it, but a lot of people think Chinese sellers are black hat sellers, or maybe they’re, I think there’s less and less black hat now, and, but they’re just becoming more advanced on [00:37:30] their strategies and using logistics like these strategies that he and Justin have shared.
Right. I think a lot of western sellers are not as aware, like, right. Justin, you, we work with some easy China warehouse, and they’re not really thinking about these things. They’re just buying it and not considering the packaging and the carton size and the weights and the shipping fees. They’re just kind of shipping it.
Yeah. [00:38:00] They’ll more care about like some our, some our customer, they’ll more care about the shipping rate. They’ll not more care how much for educate you, but not even utilities will be careful a lot thing, not just focus on their price. The, the, the shipping rate also need to about the packaging because sometimes the will just finish the product like this.
And the one master, uh, boss will just under like 12 page and in this case, you’ll normally, [00:38:30] we our customer to, to make it to up to 12 page. Otherwise you will pay the both for the shipping fee, no matter. Like even though how much for the, the kg for what? For you one, one kg, how much US D also like, yeah, you need to care about in this, this thing.
Yep. Yeah, so they, they would need a reliable partners like your, like Right. Easy China warehouse. Yeah. Yeah. So, so I continue, yeah. And, and some [00:39:00] more experience. Yeah, yeah. Trend service are actually paying more and more attention on quality and may maybe some, some products are still, yeah, yeah. As quite as crap.
I can read some reviews on, on, on Amazon, but you, if you, you can see especially some high tier sellers, some among sellers. They’re already paying a lot of attention on qualities. This is in Chinese where I can translate to you that this is from, this is a job requirement from two Chinese [00:39:30] sellers. They are both recruiting quality manager.
This is a, a job equipment, and they’re offering, I’m not sure if you can see, 20 K to 40 K multipli by 15 times K as a salary. To quality manager in, in, in, in both the, the, the second one is like 25 to 30 5K per month times 30 months. Yeah. As a, as a total package to this quality [00:40:00] manager. They’re hiring very experienced and they’re paying a lot to this job.
To, to this managers. Yeah. To help them to improve their quality. So more and more sellers now, they are paying more attention to the quality and they are getting more experienced people and high quality people to, to drive to improve their quality. So, so in the very future you can, you can see the product from the product side of the Chinese product [00:40:30] in, in, in different category, they’ll become better and better.
So this is why they can remain a, a better rating on the products. This is because they are now already investing a lot on quality. And this is some reviews that I, I can even on Tamil. Yeah. This is a review I captured from Tamil. Tamil. People think that product on Tamil is just rubbish. Yeah. But yeah.
Yeah. I, I can see some positive comment now that, that they, they are, [00:41:00] they, they are, they realize that some product on Tamil, now they’re getting better and I can see some now I can see, I can see on Tamil they’re already selling some high price product and some, and some big items. So I think they are trying to turn the image.
They, they not just want to focus on some note here. They just not, they don’t wanna just focus on consumers with that who are always pay attention to price. They want to get more consumers [00:41:30] that, that are, that will try to buy some quality things. So this is, I think, the change I’m trying to make. And with, if they want to achieve this, they, they will have support from sellers and manufacturers, which are trying to improve their qualities.
And so this is what I wanna say about the, the supply chain part. And in summary, I think from now on, I, each sellers we have to improve on supply chain to get savings [00:42:00] because Amazon is trying to get money from us. If we want to stay profitable, we must, yeah. Have all kind, all, all methods to improve on our supply chain.
And yeah, Q4 is coming too. Yeah, yeah, yeah, yeah. We have to have more flexible logistic solutions to that diversify channels because we have Amazon, maybe some of you will, will do warm up. I’m not sure if anyone do our, of you do warm up, maybe Wayfair and, and TikTok shop. [00:42:30] That is very hot. If you have an American company or if you have a Chinese company, I strongly suggest you can now try the TikTok shop.
And you have, you should have a reliable logistic partners, especially in pick system because yeah, you may, you might not get your product in the warehouse on time, so, so I think this is my will hold this meeting because they’re expert on on this part. Yeah, I mean, we’re saying in chat, there’s been a little bit of chats too.
We have to compete on logistics. I think I say it in the [00:43:00] chat, it’s becoming a strategic advantage whether you’re Chinese or foreign or it doesn’t matter, but if you’re able to optimize your shipping. And logistics. But I do think Chinese are better at this than, than foreigners. I mean, I guess if I feel that they, because of, I, I think it’s taught more in Chinese e-commerce than western e-commerce, in my opinion.
From my, what I see. And, but yeah, continue. Sorry. You have more. Contact. Yeah, yeah, no problem. Yeah, I You always asking. Yeah. [00:43:30] I want every one of you, if you are sellers, now, especially you are selling on American market and, and like European market, I suggest you to diversify your, sell your selling channel chain sellers are not, most of them are just selling on Amazon.
They’re, they, because you single platform could be dangerous. So many of them already becoming diversified. And this is the, the down rank of different apps. Here you can see in AM in America on the left Temo and Shein actually now is number one and number two. And then [00:44:00] Amazon, Walmart, and Alice Express.
So in the top five free, this is download. This is a download. Ran, not, not the existing ran. So from down, from the aspect of downloading 10, there are three from China, three apps from China, and two apps from USA. And if you consider about the, the other side, the total downloading now, this is, I think it is from Q3 or Q4 last year.
It is not updated data. It’s from last year. Last year. TikTok is still the number one as a combined [00:44:30] from App Store and, and Google and then Instagram. So this is why you can focus on this a few apps that if you want to expand your, your channels, and especially from TikTok, you can see the trend, the sales, sales order growing very quickly, just like, yeah, Amazon in a few years ago, and this is live streaming.
I, I just captured from, from TikTok, TikTok Live streaming. I’m not sure if ev everyone, you are aware that in [00:45:00] China live stream e-commerce is a very big business. It’s huge and sometimes you can see some live stream hosts. They will have live at least 10 million people at the same time. Watching their live streaming.
So in China, live streaming is a huge business. And, and now even in Southeast Asia. Yeah. And a lot of people purchase products from live streaming, but the trend just started in the United States. The image from the lab, it can show that this is, I think [00:45:30] it is in July. Yeah. It just cost a 1 million milestone per live streaming.
Yeah. Selling cosmetic products, personal care products. So this, this, and this is attribute to, to teams from as Los Angeles and, and teams in China. They both Yeah. Do this to achieve this monuments, and this is live streaming from another brand. So I, I, I, what I want to tell you is that now people, the [00:46:00] trend from buying from video buying, product from live streaming is already happening.
And. Can you see this image? Yeah, it, it is very clear that this is a brand. It’s actually from Guang Jo. It’s a freshman brand. The left part is the sales from IS Top Shop and the right part is the sales from is Amazon Shop. Can you see here in IS Top Shop in just a meal for a few months. For [00:46:30] this item, it has already sold more than 275,000 pieces and in Amazon it’s like 300 plus sold each month.
And can you see a selling price is sell even at a higher price on Top Shop than on Amazon. And the reveal quantity that it has. More than [00:47:00] 20,000 reviews in TikTok shop, and the review on Amazon is about 8,000. And the service, clever it, diverse it, it, it, the, the image you, you can see here actually is the same product, but it highlighted different SKUs on different platforms.
On this screen, I just want to show everyone the potential of TikTok shop. Yeah. This brand already demonstrated this. The, the sales potential on TikTok [00:47:30] shop could be much, much higher than Amazon if you have done it well. Cool. Yeah. I, we, we analyzed this brand, what they have done in Amazon and what they have done on top.
They, in Amazon, they even don’t have their sb the, the SB advertising and not, and neither SB nor SV, but on Amazon, sorry, but on TikTok. You can see here, they have already [00:48:00] 6.8 millions of videos I mentioned about this brand. So when they find, find out, found out, TikTok Shop is a huge channel for their business.
They actually focus more on TikTok. They put more resources on TikTok. So they, they did much better on TikTok than in Amazon. And this is, uh, some videos from TikTok. They, they have a lots of average, some average are bonus are, are, are commission space. [00:48:30] When you sell one item, you can get 20% to 30% of the sales.
These are commission based, and some of them they don’t have commission, but they, they get free products or, or they may get paid to review these products. And if you notice almost every video, they will highlight their brand. Can you see here? OQ, Q, O, Q, QO, QQ. So in this and in the, in the title, in the video title.
So in this way, they got their brand with [00:49:00] a lots of exposure, much higher than the brand had already had, had expected. And this is Chinese, this is this all mean live show. They have their live streaming almost every day to attract more consumer on, on TikTok. So attract more consumers to watch it live and, and get exposure and, and get support from the official part of TikTok Shop.
This is a very significant change. This is from Google search of the [00:49:30] VO OQQ from last year. The, the search index is here about 20, and he and Lovis at, in this year in maybe June, is about 100. I think this, this is not show the, the chart not significantly show that, but you can imagine that search terms, the, the search of the, the brand increased by four times.
So this is a significant change. When they put more resources on TikTok shop and even in the [00:50:00] Instagram, they will post their TikTok shop video. So this is how they try. You see here, they, they trying to put more some traffic to their TikTok shop. This is this brand OQQ. When they realize and they found out they can have good return on investment from TikTok shop, they just trying to get more, they just invest, yeah, more resources on this platform.
So you maybe some of you’ll know about fashion. No fashion Noer is [00:50:30] the fashion brand that grow in the Instagram times. It just ed an army of Instagram influencer to, to build and this brand is now a huge brand, fashion brand. I think in the TikTok period, many brand can copy the Fashion Nova success from Instagram.
They just can build a success on TikTok. So this is the second part. I, I’m, I, I want to, I want to tell everyone that TikTok shop is a huge opportunity. [00:51:00] Everyone of you can try to start to build contents, build your athlete team, and build dedicating, yeah. To, to drive yourselves on, on TikTok. So if you, I think some of you may attend the crossword summit.
Mike just mentioned, if you attend the crossword summit, I, I will talk more about, and I will share more cases, studies about TikTok shop and how you can build up your successful TikTok shop store. Yeah, this part is very important. This is, I, I believe it is a very good [00:51:30] opportunity of 10 24 for e-commerce business.
Thank you so much, Ken. It’s been, yeah, it’s been great to have you. Yeah, I mean, you always overdeliver, I feel you probably have more slides, but we’re at the hour mark. Yeah, yeah. Are we, yeah. Is that time already enough? Uh, is it, I think its more, yeah. I mean, I think we want a little bit time questions. I think one hour is total.
We’ve started about, I mean, I know your session’s been about a 30 or 35 minutes, but I think maybe we can go to q and [00:52:00] a for, for now on what we’ve covered so far. Okay. I see a few about logistics in the q and a section, and then we can go into the table mode after, after that. So people either use a Q and A tab.
There was a couple from when Justin spoke and one that came in, but on anything we’ve covered so far. But yeah, like Ken says, he’s coming to the cross border summit. He’s gonna be speaking again. Popular demand. Last year’s was amazing. He has so much content. He also has a, he has an interactive workshop he did last year.
[00:52:30] And it’s all, it’s all new content. I mean, there’s so much changing, so it’s amazing knowledge. I think even this session today, I think got a lot of ideas for people, so it’d be even more in, in Thailand and November. So thanks Ken, and also Justin for sharing. So both here. So do you want me to read off these questions?
I think they’re mostly Justin, but I think Ken can also give his input on on some of them. Yeah. Yeah. I, I’ll start sharing and, and maybe you’ll just do the q and a. Yeah. Okay. Sure. Yeah. The qa, [00:53:00] I saw the first question. Yeah. Maybe read the question first and then the answer. The good one. They are in trial warehouse.
I mean, you buy it, so you owe it definitely belong to you. You’re the buyer who can, who can owe your goods. Right. It’s owned by the, yeah, by you, by the clients. Yeah. It’s not owned by the factory. It’s not owned by the warehouse. It’s owned by you as the buyer. Yeah, you pay and it belong to you and [00:53:30] you. We just provide a service to how you install your inventory in our warehouse, how you manage the shipment.
We provide a service. We know all your goods. Yeah. Yeah. And there’s a contract and everything to that is in English that you would sign before that. But yeah, just like Amazon, FBA holds your goods. They’re your goods. They’re not Amazons. It’s the same idea here. Yeah. So the next, maybe I read the question, you can put the answer or the next question is, [00:54:00] who claims the VAT when goods are exported from the China warehouse?
I think VAT is also called fao. Like the export declaration and the, yeah, it depends. It depends on like even have China VAT and also like you, when you import to like your country or different country like. For us, I think he means reclaim, so I think he means getting the money back from the Chinese government for the export.
Oh, [00:54:30] like the, in China we call UVAT respond, right? Yeah. Like a VAT rebate or a faia like Yeah. You get the money back for exporting the goods. Yeah. Yeah, yeah. I mean, well, it’ll be the, your company and you use your VT number to, to commit that. And from the government, well, I think we’ve done it with some clients where the factory wants to get that, so it could also be the [00:55:00] factory.
’cause a factory might give you an FOB price with a cheaper price because of the VAT. So I don’t know if it’s always the same answer for the person that asked this some. It depends on different, I think it’s on different side because you, the V is you want V in your country. We can it then if you, your country, if you in China only can, again, the bad can [00:55:30] retain vt.
Yeah. I mean the way I read it is who reclaims the VAT when goods are exported from China? So I think the question is, and whoever ask it to clarify, I think they’re saying who gets the ’cause the Chinese government gives money back to the exporter of goods of the tax because it’s a VAT refund. Usually you’d have to have an export license in China to get that.
If you have your own export license, you could of course do it yourself sometimes. Most of the time [00:56:00] I think the factory wants that ’cause they give you the price. But I, it’s not like a straight answer. It’s very actually fa, it’s called fa. It’s very complex. So I think it depends on your situation and of course I think most logistics companies, but especially Easy China Warehouse would do the best for you.
So we would always clarify that when we’re doing your shipment. I hope that’s helpful answer. The last question I see is do I have to have a Chinese company to use your warehouse or a Hong Kong company [00:56:30] to use your warehouse, Justin? No. No, you don’t. You don’t need, you don’t need a Chinese W company or Hong Kong.
You don’t need that. You just like, we signed a contract. We use also the contract also will not use a Chinese company if we to sign it. We have our to you, so you don’t need to worry about. The company thing. Yep. So the point I used at China Warehouse, it was started [00:57:00] as a way to give foreign businesses Chinese logistics options.
So it’s locally here and Justin’s a CEO and and shareholder and partner as well as our side, our community here. So the idea is even this webinar, of course we hope to work with you, but we also hope to educate you. We want people to understand the tactics and tools that you can have. You can store products in China, ship D two C from China.
You can ship some people, ship to Japan or Australia or use local warehouses [00:57:30] there. Keep some stock in China. Maybe try to TikTok shops, LA Sense, Amazon FBA. I think the theme that we’re hearing from both Can and Justin is people going multi-channel people not just, I mean I think a lot of Chinese sellers right?
Can used to be Amazon only. I remember many years ago before Covid, there are a lot where Amazon only, but I feel like most are going multi-channel now. Right. Especially TikTok. Maybe tmu seems like everybody’s going multi-channel, but to be able to go [00:58:00] multi-channel means you need advanced logistics options, right?
So you have to be able to ship maybe from China for some, or ship from USA for some and have to have these solutions for you. Go ahead Justin. Yeah, and this one I think can maybe considered why Chinese seller will go to more multichannel, not just like Amazon, like big I I remember that like 2000 Chinese three, right?
Some my big company [00:58:30] in China, they just not get Amazon suspend their account. Why? Yeah. Sorry. Do you ask me? Yeah, yeah. I think asking why are they multi-channel Now, I I, sorry, can you repeat your question? I, I just, I mean, we were just saying how the theme is Chinese seller, he was typing something. So why are Chinese sellers multiple channel now?
Not just Amazon. There, there are a few reasons. One of it is, one of that is like Amazon. The, the poverty rate is getting much [00:59:00] lower than before. Yeah. They, they want to find some channels that would, could be more promising and, and to diversify maybe to, because there could be some risk that if you put everything on, on just one channel.
So this is how they, they want to diversify. Like Walmart is not, is also growing well, not just Amazon. So people service in China, they could have like at least one one, some of them will have at least four or three channels. Like Amazon is a base and [00:59:30] Walmart is, is also doing well. And TikTok shop could be a very promising channel.
And some of them even they will, they will try to use Tamo because Tamo is a good way to clear their inventories. Yeah. So, so this is why, and this already practicing this trend strategy. So, yeah, I think we’re a little bit over time. I, I hope people enjoy it. Seems like most people are sticking around in the, in the, in the session.
I got my screen sharing on, again, of course, cross border [01:00:00] summits, one of the main focuses, Ken, Justin and I will also, I’ll be there. It’ll be here in chain, my Thailand, so it’ll be great to see some of you there. You can of course, email Sally or us to get more information. It’s a premium event and also we have this roadshow coming up.
Flip is a sponsor at Cross Board Summit this year, and we are doing this partner roadshow. So if you’re in one of these cities, it would be great to meet you there. You can go to flippa.com/asia to check that out. And that’s my main [01:00:30] points for now. We can flip into networking mode a bit. Alicia’s asking about the AI part, I mean, it’s a little bit late, but I don’t, I I don’t think we have time for his AI today can, right, it’s a little bit past, uh, one hour.
Session. Yeah, I think next time Alicia. Alright everybody, I will end the session, but I think we can see if everyone’s hanging out in, in the table mode [01:01:00] and lots of things happening. Two months to cross border summit. Can you believe that already? So lots, lots of amazing things going on and thanks everybody for tuning in.
Thank you Ken, for sharing your amazing insights and Justin for your strategies and insights too. See you all in the next episode. Cheers. The future of e-commerce is waiting. Load pipe is back. It’s a protocol. We are making the new way to [01:01:30] do e-commerce with blockchain technology. This is very early stage and we have Hamza as our first marketplace in this new ecosystem.
It’s very epic If you wanna participate, we are on alpha stage in Q1 2024 where you can be a buyer or a a vendor application only. Check it out@hamza.biz for the marketplace or the overview of this protocol and subscribe for updates@loadpipe.com. [01:02:00] See you there. Thank you so much for listening to and watching our global from Asia.
I can’t believe we’re getting out in the mid four hundreds of these shows. We got more lined up for you. We’re building up as we get to the Cross Border Summit in early November. Also, Canton Fer is coming. The road show with Flippa is happening at the end of September into early October. I’m gonna be on the road like crazy.
So I hope you enjoy this show. Definitely make sure you stay on our newsletter. We do send some pretty exclusive [01:02:30] opportunities and and things like this webinar. So if you didn’t, if you wanted to be on this live one, it was a free webinar, definitely subscribe to our newsletter@globalesia.com slash subscribe and we will just keep on pushing amazing things out.
We got a lot of things on the queue lined up to share with you. Next week we’re gonna have a show with Fiona from Flippa talking about some trends happening with cross border deals and other insights. So that’s it for now. Thank you so much for listening or watching and whatever. And global from Asia.
We are [01:03:00] trying to be distributed across all different channels. Of the internet. Thank you again, Mike Micheli here. See you later. Bye-Bye. To get more info about running an international business, please visit our website@ww.global from asia.com. That’s ww.global from asia.com. Also, be sure to subscribe to our iTunes feed.
Thanks for tuning in.
Podcast: Play in new window | Download
Subscribe: RSS