Sales exceed 100 million, and annual sales surged by 200%!How can the office category win over overseas Amazon buyers?
June 29, 2022
Table of contents:
1. Tackle each challenge and pain point one by one, and use different approaches to achieve results
2. Leverage momentum, put your brand first, and expand your market with the right strategy
3. User needs guide product innovation, making products the brand’s “spokesperson”
4. Build your own brand in an area you know well
5. Heartfelt experience sharing—there’s still a long way to go, so keep moving forward with confidence
In the post-pandemic era, the rise of different work models, such as working from home and mobile work, has driven rapid growth in overseas demand for office supplies. Data shows that the global office supplies market reached an astonishing US$252.6 billion in value in 2021, and will continue to grow rapidly by US$6–7 billion each year through 2024. *
A big industry and a big market—office supplies are undoubtedly a highly attractive blue-ocean opportunity!
This time, we conducted in-depth interviews with three Chinese sellers who have achieved great results in the office supplies category.
Some of them are already well-known brands in China and have begun their global expansion through Amazon cross-border selling.
After launching on Amazon, some sold their products to major organizations such as the German government and NASA in the United States.
Some have more than 10 years of traditional foreign trade experience and are now starting to sell directly to overseas consumers while building their own global brands.
The three sellers decisively used the momentum for cross-border selling. Although their companies varied in size and strategy, they each achieved results that exceeded expectations. Their stories and experiences may inspire you and help you find your own way to break through in cross-border selling. Let’s take a look!
➹ Xihao Furniture:A major player in a major industry, with a small goal of 10 billion in five years
• Opened an Amazon US Marketplace in 2019 and now has launched stores in multiple Amazon Marketplaces worldwide, achieving a leap in the brand’s global expansion
• In 2021, sales on Amazon reached Chinese Yuan 300 million, and the brand ranked in the top 10 by sales in the US Marketplace and was an industry leader across multiple European Marketplaces
Xihao is a leading domestic brand specializing in ergonomic office chairs. Although it has already reached the top, competition in the domestic market is fierce, and Xihao is also facing the challenge of finding new growth drivers.
Luo Huiping, chairman of Sihoo
“We found that many domestic furniture companies had achieved very good results overseas, so we also wanted to explore this direction. As a brand entering a local market for the first time, breaking through strong sales barriers requires relying on a mature local sales system. For this reason, we also personally visited more than 10 countries to participate in exhibitions and find suitable local dealers to help us increase sales, but with little effect. ”
The turning point came in 2019, when Xihao launched on the Amazon US Marketplace. “With the help of an Amazon account manager, we enrolled in Amazon Business, which allowed us to sell our products to both individual and business customers on Amazon at the same time. The feedback we received was even better than in China, and everything sold out in less than half a month. Well-known Fortune 100 companies in the US also buy our products through Amazon Business, which gives us a level of efficiency and direct access that traditional channels could not achieve before. ”
After overcoming the biggest challenge of expanding overseas—the barrier of sales channels—Xihao leveraged its many years of operational experience to bring its domestic e-commerce DNA to overseas markets. Backed by strong supply chain advantages and outstanding product design, it rapidly expanded across global marketplaces, earning Best Seller in Germany and other marketplaces, and far outperforming competitors in sales across Europe, achieving breakthroughs worldwide in both product and brand performance.
Amazon helps new brands enter overseas markets more easily and directly. It can bypass barriers and bring our brand and products directly to consumers overseas.
Like Xihao, a scanner seller named Min and a stationery seller named Tom have also achieved great success overseas. They also seized the opportunities in cross-border e-commerce, found the hot office supplies track, and achieved impressive results.
➹ Scanner seller Min: a post-90s young team that sold products to NASA in the United States
• Started selling on Amazon in 2019 and enrolled in Amazon Business, later winning many high-value direct procurement orders from governments and large institutions
• In 2021, Amazon overseas sales grew rapidly by 200%, with sales from Amazon individual consumers (C-side) and business and institutional buyers (B-side) each accounting for 50%
Min, a barcode scanner seller, started with a small team of 2 people and grew quickly over 3 years. It has now grown into a lean team of 20 people, with most members born in the 1990s. The company specializes in office supplies, especially barcode scanners. After launching on Amazon, it continuously dug deeper into buyer needs. With high quality, innovative design, and an exceptional experience, and through Amazon Business, it sold its products to government agencies and large enterprises such as German government departments, NASA in the US, US state government education departments, and Rakuten in Japan.
Min, CEO and founder of a barcode scanner seller
“Soon after launching on Amazon, we found that 10%–20% of our orders came from business purchases. We didn’t expect there to be so many business orders on Amazon as well.
So, in addition to regular tools such as advertising and promotions, we also set business pricing and quantity discounts for the products. After operating for a while, and with these business customers also having a relatively high repeat purchase rate, sales from business customers increased to 50% of our total Amazon sales. In 2021, our market share continued to grow, and sales increased by 200%, putting us on a fast growth trajectory. ”
➹ Office supplies seller Tom: A traditional foreign trade business made a lightweight move into Amazon and sold more than 3 million markers in one year!
• Launched on Amazon in 2018, this experienced traditional foreign trade seller focused on the US Marketplace and successfully transformed with 3 post-90s employees forming a lean team
• In 2021, sales reached 3 million US dollars
TOM's company was founded in 2008 and got its start in traditional foreign trade, mainly serving large US supermarkets. After getting started on Amazon 5 years ago, the company hired 3 young e-commerce operators born in the 1990s, launched on the US Marketplace, and started building its own brand.
Tom, founder of an office supplies seller
“Traditional foreign trade is hard work that requires heavy investment, yet control has never really been in our own hands. Selling on Amazon is much easier. It helps you simplify many operations and takes care of tax, channels, logistics, and more. You only need to create good products and ensure supply, and you’re ready to go with a light load. ”
At first, Tom wasn’t confident about selling stationery on Amazon. He felt that office products were priced too low: “We supplied one marker to supermarkets for only 20–30 cents, and then the supermarkets sold it for $1. Moving online, even if we sell directly to consumers for $1, the profit margin is still very limited, because shipping alone costs $3–$4. Unless there are large business purchase orders, we can’t spread out shipping costs and earn more profit. ”
To Tom’s surprise, he became profitable soon after he started selling on Amazon, attracting not only individual customers overseas, but also a large number of business purchase orders. Tom analyzed the reasons: more than 10 years of traditional foreign trade experience provided a strong foundation for their cross-border e-commerce business, including a stable supply chain and an understanding of local users’ preferences. Not only that, but Amazon Business direct procurement can connect with high-quality business customers overseas, and with its cost-effective approach and product selection for multiple use cases, it naturally stands out and gains an advantage.
In 2021, as traditional foreign trade sales continued to decline, Tom sold more than 3 million markers in a year on Amazon US, and sales kept growing, with 40% of sales coming from Amazon Business customers
Choosing the right path is only the first step. If you want to gain more bargaining power and market share overseas, it also depends on the power of the brand. Xi Hao and Min both mentioned the importance of brand building when talking about how to break through the number one order and the secret to continuing to win sales on multiple sites.
Luo Huiping, Chairman of Sihoo
“In China, we target the middle class, and our products are priced at around 1,000 yuan–2,000 yuan. As we expanded overseas, we further leveraged Xihao’s strengths in product design and operations, not taking the value-for-money route, but positioning ourselves as a mid-to-high-end brand. So from the time we launched, we didn’t offer products priced below $100, and instead went straight for the relatively untapped $200 price range on Amazon. ”
Sihoo had already created a national bestselling product with sales of 2 million units in China, setting a single-product sales record in the ergonomic furniture industry. When entering overseas markets, what tested them was not their products’ quality and innovation, but how to help users notice the thoughtful details in their office chair designs when most office chairs look very similar, so they could gain brand recognition in the mid-to-high-end market.
Strong visibility + experience first + compliance standards is an excellent combination for them to win large orders and build brand awareness in the early stages.
► 1. Strong exposure to make a splash
When Xihao entered overseas Marketplaces, the brand almost had to start from scratch. They created a full set of store designs and promotional materials based on the use cases of mid- to high-end users, and at the same time, they took a strong first-mover approach by launching large-scale advertising on Amazon, so more target audiences could get exposure to their brand information right away.
► 2. Experience comes first, and word of mouth drives interest
On Amazon, collect user trial feedback through Amazon's trial channel. Off-site, different KOLs are invited to review and recommend the products, creating a word-of-mouth effect. In this process, feedback on requirements such as height, body type, usage scenarios, duration of use, comfort, and durability from users across different Marketplaces was used to build a product improvement database and create ergonomic, comfortable seats that better meet the needs of overseas users.
► 3. Operate compliantly to win large institutional orders
In 2019, as Xihao first entered the European Marketplace, it chose Germany, a center of industrial design with stricter, more exacting standards for brands and craftsmanship. Amazon has strict requirements for sellers to operate in compliance across its Marketplaces. Through its consistent compliant operations, Sihoo has stood out among many overseas sellers, earning recognition from local consumers and institutions for its high quality and compliant operations, and securing the large institutional orders that other brands dream of.
We benefited from Amazon’s mature Marketplaces and standardized operations, quickly expanding into Europe and reaching the No. 1 sales ranking in both the UK and Germany. The successful experience was due, on the one hand, to accurate positioning: we identified the right category and made an immediate impact, and the functional design of our products happened to align with German users’ rigorous, science-respecting style. On the other hand, we need to take the right path and stay compliant, following Amazon’s compliance requirements so we can gain recognition more quickly in European Marketplaces with high standards and strict requirements.
The United States, Canada, Mexico, all European Marketplaces, Sweden, the Netherlands, India, Japan... Xihao now has Amazon Marketplaces around the world, and they have set two small goals:
🚩 Achieve annual sales of more than 2 million units for a single high-end product;
🚩 In the process of global expansion, achieve RMB 10 billion in sales within 5 years.
This ambition stems not only from optimism about the office supplies market, but also from Xihao’s confidence in the strength of its own products and brand.
Also positioned in the mid-to-high-end market and winning over consumers through product innovation while continuously increasing brand recognition is barcode scanner seller Min. When overseas consumers come into contact with Min, they choose “let the product do the talking.” In order to be able to produce the products that customers really need, Min visited nearly 100 Chinese scanner factories in 2020, selected three excellent factories with similar values and similar product concepts, and carried out in-depth cooperation. Faced with the dilemma between low cost and high quality, Min decisively chose high-quality products to deliver the best possible customer experience.
Min, CEO and founder of a barcode scanner seller
“When we first got into cross-border selling, our goal was to become a Best Seller. Now, as we grow, the success of just one product is no longer enough for us. Our goal is our entire product line, and we hope to capture a larger share of the global market. ”
How to achieve these goals?
The key is to listen to user feedback, continuously improve products, and create differentiation, so consumers can feel the brand values not only through product features, but also through service and experience, increasing brand recognition.
How to understand user needs and guide product innovation?
On one hand, it’s the flexible use of Amazon tools. By using Amazon Brand Analytics, you can understand customer preferences, customer profiles, repeat purchase behavior, and buyers’ search keywords, analyze relevant data, simulate customer use scenarios, and innovate products based on customers’ real needs and experiences.
On the other hand, we also place great importance on communicating with customers, and we actively reply to and follow up on every email, comment, and piece of feedback from buyers, answering every question, meeting every need, and building positive interactions with users.
The following examples show Min’s capabilities in user insights and product innovation.
One data cable wins over a Fortune 500 customer in the US
A Fortune 500 customer in the United States once asked Min to improve the product’s data cable accessories. Previously, one end of the data cable was a USB connector, and the other end was an Ethernet port. Once this kind of data cable is damaged, you have to buy it again and wait for it to be delivered, which is not very convenient. The customer wanted Min to make both ends USB connectors, so even if one was damaged, they could buy a replacement data cable locally and continue using it.
Differentiate innovation based on customer preferences across different Marketplaces
Through data analysis, Min found that German customers prefer mid- to high-end products and have higher requirements for product design, functionality, and sensitivity, while customers in other Marketplaces prefer mid-range products and focus on compatibility and durability.
Through research on customer preferences across different Marketplaces, Min found that color choices also vary by country. German customers love green, and American customers love orange. As a result, we launched custom versions in different colors and created corresponding Marketplace bestselling products.
Optimize the service experience for different use scenarios
When industrial buyers use barcode scanners, dust, grease, and other residue from the work environment can easily soil the scanners and reduce their sensitivity.
For this situation, Min decided to create a dedicated product line for industrial use scenarios and improve the products’ contamination resistance and sensitivity, addressing the pain points of scanner users in these scenarios and earning very positive user feedback.
Solid product quality/appearance + excellent customer service = a good buyer experience. Use data such as users’ keyword searches to research users in different industries and optimize product design based on factors such as different work environments and usage scenarios. At the same time, promotional materials also need to better match user scenarios to build brand impact.
Compared with Xihao and Min, which are positioned in the mid-to-high-end market, Tom, who chose a more affordable approach, more strongly expressed his determination to build his own brand through Amazon.
Tom, founder of an office products seller
“In traditional foreign trade, control is in someone else’s hands. When consumers buy markers at the supermarket, they may not look at the brand at all; they only look at the price. On Amazon, we have the opportunity to interact directly with consumers, make flexible adjustments based on user data feedback, take the initiative into our own hands, and gradually build our own brand. ”
Tom’s 15 years of traditional foreign trade experience, on the one hand, gave him a stronger supply chain, allowing him to control prices better and offer US consumers products with better value than those from dollar stores, giving him a stronger advantage over competing products in price comparisons. On the other hand, it also gave Tom a deeper understanding of users in the US Marketplace, helping them better understand customer needs more accurately in product selection and promotion, and create bestselling products.
In the early stages of brand building, Tom did not spend money on packaging. Instead, he focused on product quality and practical features and offered a broader selection for different use cases, such as education and training, events and parties, children’s drawing, professional art creation, and office stationery use. He continued to strengthen and build a brand image of being “affordable, easy to use, and offering lots of choice,” which quickly earned positive customer feedback and helped him make a smooth transition.
Originally, we joined Amazon because we wanted to pursue long-term growth and didn’t care whether we made a quick profit in the short term. What surprised me about stationery was that basically every product I invested in was making money. So you should still focus on the areas you know well and make the most of the product selection experience and supply chain resources you’ve built up through traditional foreign trade. Furthermore, it can be said that only Amazon can give traditional sellers like us the opportunity to build our own brands.
On the road to cross-border selling, it’s not always smooth sailing. Behind the impressive results, the three sellers also shared their lessons and experiences. Let’s take a look!
Luo Huiping
Don’t blindly follow trends when choosing products; don’t go wherever the money is. It’s also not recommended to work on multiple categories at the same time. Take them one category at a time to build your core competitiveness. At the same time, you also need to manage your expectations. Many people see others doing especially well on Amazon, so they set very high expectations. But when their resources and capabilities aren’t a good match, they find it hard to keep going and are more likely to give up. Finally, operate in compliance, because customer trust is the key to long-term success.
The value-for-money route is highly competitive, so you should still focus on product quality and feature development. Office Products buyers care more about product quality. Low prices alone won’t drive sales, so you should focus on more innovation in product features and functionality.
Min
Tom
Traditional foreign traders must not waste the experience they’ve built up, and should start with the categories they know best. Before making stationery, we tried other popular categories such as furniture, but we didn't succeed due to the weak supply chain and lack of understanding of the market. Instead, we went back to the stationery category we knew best, played to our strongest strengths, and quickly got back on track. After bouncing back from the brink, we became even more confident in choosing office supplies as our focus. Only by focusing on the categories you know best can you avoid unnecessary detours. Let this be a lesson for everyone.
In recent years, traditional foreign trade has faced unprecedented challenges, and many people who want to transform their business don’t know where to start. The experiences of these three sellers offer valuable insights.
On the one hand, beginner sellers are advised to focus on evergreen categories. In addition to attracting individual buyers, they can also attract business and institutional customers with high repeat purchases and large orders.
On the other hand, build your core competitiveness, listen to customer needs, keep innovating products, and build your brand.
If the boom in cross-border selling is the right timing, then using Amazon to quickly break through traditional sales barriers is the right place, and finding retailers online to build a business on both sides is the right people. Now that the right timing, place, and people are all in place, if you don’t join now, when will you?We wish every seller success in finding your own blue ocean in this wide-open landscape!
What is Amazon Business, which several sellers mentioned?
Amazon Business, as a new channel for direct business procurement worldwide, helps Amazon sellers directly reach a large number of business end customers around the world. Users include hospitals, educational institutions, Fortune 500 companies, and government agencies. Sellers can use the same account to sell products to both individual and business buyers. Once you enable Amazon Business, you can also use Amazon Business’s exclusive operational resources and tools to increase B2B traffic and sales, and get opportunities for large bulk orders.
Amazon Business
Top-selling recommendations for office furniture and office products
How do I activate Amazon Business Shopping?
If you’re already an Amazon seller:
You can log in to Seller Central and follow the 3 steps below, or search for “Amazon Business procurement marketplace” on the Help page to unlock Amazon Business features on your own!