Seller story

An inconspicuous item is so popular!The post-80s boss in Wenzhou is Amazon, with monthly sales of single products 6k+, ranking at the top of the subcategories

August 15, 2024
Reading time about 6 minutes
Electrical products, an unfamiliar field of expertise that is integrated into people's daily lives, is not a category preferred or focused on by many Amazon sellers due to industry expertise and high supply chain requirements at a time when the domestic market is becoming saturated.
Backed by Liushi Town, Yueqing, Wenzhou, the “capital of low-voltage electrical appliances”, a former elite of the world's top 500 companies, switched careers to become a dark horse on the Amazon Electric Circuit with his keen market insight and decisive courage. At a time when most sellers were still fighting in the domestic stock market, he had already taken a different approach and set sail overseas to promote the niche category of electricity to a wider global market through cross-border e-commerce.
Today, we are honored to invite Mr. Rick Chen, founder of Baomain. He will personally reveal to us his secrets of success, share how he has keenly captured the cross-border potential of the electrical category to stand out in the European and American markets, and how he achieved the feat of selling more than 6,000 units per month with accurate product selection methodologies, and successfully became the top seller in the Amazon category.Next, let's dive into the story behind Baomain.
Where did Amazon's first step in transforming from the world's top 500 IT elite fall?
Chen was always a native of Wenzhou. After graduation, he joined a Fortune 500 company in Shanghai. Although his career went smoothly, the brave and competitive spirit unique to Wenzhou people in Mr. Chen was always restless. Dissatisfied with seeing his first job at first sight, he chose to return to Yueqing, Wenzhou to study and find opportunities at the Foreign Trade Electric Factory.
General Manager Chen discovered that the domestic factory price of only about 20 yuan was actually as high as 20 US dollars on Amazon. He sniffed out business opportunities, and this is how he laid the seeds for Amazon's cross-border e-commerce.
In 2013, Mr. Chen's factory decided to move to another province. Faced with this sudden adjustment, Mr. Chen did not feel lost; instead, he decided to stay in Yueqing and start selling on Amazon. His experience in the electrical factory has allowed him to accumulate deep industry knowledge and experience, and also have unique opinions on various business models.
Mr. Chen: “The essence of the retail industry lies in the instant rewards of every transaction. That sense of 'falling into the bag for security' will be more reassuring, so in my opinion, the blue ocean of cross-border e-commerce will have great potential. Abbottt, Premiere Creative’s creative director.
Adhering to this belief and determination, Mr. Chen quickly registered his own Amazon store, focused on promoting high-quality electrical products to the European and American markets, and officially embarked on the journey of cross-border e-commerce.
Use Amazon FBA to bid farewell to the first “997” cross-border experience
In 2013, when Mr. Chen first entered Amazon, he initially chose the self-delivery model as a starting point in order to save logistics costs.
During that time, Mr. Chen seemed to be stuck in an uninterrupted work cycle of listing, packaging, and delivery, which made him deeply moved. According to his recollection, “At the time, we shipped as many as 400 orders a day, and we had to work more than 18 hours every day, almost all year round. The level of hard work is imaginable. Abbottt, Premiere Creative’s creative director.
What is even more difficult is that every holiday, especially during the Spring Festival, uncertainties in customs, logistics, and international transportation often lead to a backlog of goods, and delays in the arrival of packages expected by overseas customers. This is followed by a series of complaints and bad reviews from customers. This series of chain reactions caused Mr. Chen to experience the “darkest hour” since crossing the border — the store was shut down due to complaints. Due to his lack of professional operational guidance and complaint experience, Mr. Chen ultimately had to start all over again.
This made Mr. Chen realize that manpower is exhausted. If he wants to gain a long-term foothold in the fiercely competitive Amazon, he must learn to find the best solutions. As a result, in 2016, Mr. Chen adjusted his logistics strategy and switched from a self-shipping model to FBA delivery.
FBA has greatly simplified Mr. Chen's logistics operation process, enabling Mr. Chen to invest more time and energy in core strategies such as product selection, marketing, and market expansion. At the same time, FBA's efficient delivery capabilities have also won praise from consumers. In addition, FBA can also label products with the Prime label, thereby attracting the attention of a large number of Prime members and promoting a double increase in click rate and conversion rate.
With the support of Amazon FBA's professional warehousing, packaging, and distribution services, Mr. Chen achieved a transformation from “struggling with his life” to “planning operations”, thus beginning a new stage in the Amazon business.
Backed by the electrical industry belt to create unique product selection secrets
There is a popular saying in the field of cross-border e-commerce: “Three points depend on operation, seven points depend on product selection. ” The main reason why Mr. Chen has achieved outstanding results is that he continues to follow the latest developments in the international market, including trends such as energy transformation and technological innovation, and has refined a unique product selection methodology based on this.
At the same time, he also always sticks to the bottom line to ensure that all products meet international safety standards and environmental requirements. With his high-quality product matrix, he has won praise from many European and American customers.
Deeply cultivate the local ecological chain and select high-quality suppliers
Liushi Town in Yueqing, Wenzhou is known as the “capital of low-voltage electrical appliances”. This is not only one of the production bases for low-voltage electrical appliances with the largest production scale, the highest market share and the most complete range of products in China, but also synonymous with innovation and quality.
Mr. Chen is profoundly aware of the principle that “buildings close to water first get the month”, went deep into the Liushi Electric Industry Belt, and selected a large number of high-quality suppliers with a keen sense of business. Although these manufacturers are not famous, they strive for excellence in production processes, and many products can reach the top international standards.
Mr. Chen: “The electrical industry is mixed, and high-quality manufacturers are usually difficult to distinguish. And after our screening, those high-quality products “hidden in the deep alley” can be quickly promoted to the European and American markets. Abbottt, Premiere Creative’s creative director.
For example, there is a controller with mediocre sales in China. Many sellers ignore it when selecting products, but Mr. Chen listed it on Amazon. After using it, a professional was surprised to find that its performance was actually comparable to that of famous international brands, and the price was very advantageous, so he left a review and greatly appreciated it, causing sales of the product to skyrocket. It sold over 500 units in just one month, making it a hot hit model at the time.
Mr. Chen: “Electrical products are a category that seems niche and marginal. If there is no demand, it is difficult for the average person to think of it. But at the same time, it's also an amazing category. If I hadn't experienced it firsthand, I'm afraid it would be hard for me to imagine that such an inconspicuous category could be so popular. Abbottt, Premiere Creative’s creative director.
Adhere to a diversified layout of products
Mr. Chen: “Electrical products are a very unique field. Unlike the rapidly changing 3C category, products may seem uncommon but are indispensable, such as generators, transformers, load switches, etc. At the same time, the market capacity of these single products is relatively limited, making it easy to reach the sales ceiling. The complexity and breadth of this application makes it difficult for sellers to follow the path of boutique sales. Abbottt, Premiere Creative’s creative director.
After careful consideration, Mr. Chen adopted a full-coverage product selection strategy, extended his vision to the entire industry, and continuously broadened the product line by exploring and introducing related peripheral products. For example, the overall demand for transformers is not very large, but President Chen noticed that many customers who buy transformers usually also need to buy supporting control equipment, protective devices, and connectors. As a result, he also incorporated these peripheral products into the product line. In this way, when purchasing transformers, customers can purchase all relevant equipment in one stop.
Based on this diversified product portfolio strategy, Mr. Chen not only cleverly circumvented the limitations of insufficient market capacity for a single product, but also accurately captured the diversified needs of the market and significantly enhanced market competitiveness.
In the process, President Chen also developed a scientific payment measurement mechanism to identify the market potential of different electrical products. At the same time, products with poor market performance will also be resolutely adjusted or eliminated to ensure efficient allocation of resources, showing a high degree of market sensitivity and flexibility.
Break the rules and expand your differentiation
According to the inherent perception of some sellers, the technical threshold for electrical products is not high, and the phenomenon of product homogenization is very common, making it difficult to make new breakthroughs. However, with his forward-looking vision, Mr. Chen has accurately grasped the current market pulse from many electrical products.
Mr. Chen discovered that as Europe and America set off a wave of energy transformation, the importance of solar energy as a representative of green energy is becoming more and more prominent, directly driving a surge in market demand for core equipment such as solar panels, and many cross-border sellers are also targeting this track.
Faced with this trend, Mr. Chen did not choose to follow the trend and enter the competition for popular products such as solar panels. Instead, he took a different approach and focused on the segments of solar energy supporting facilities, especially supporting key components, and accurately captured potential growth points in the market. In particular, it is a protector, which has become a hot seller with excellent protective performance. It sells more than 6,000 pieces in a single month, further consolidating the brand's leading position in the field of electrical products.
The original “syllogism” unlocks the flywheel of business growth
With his unique product selection strategy, Mr. Chen quickly built up a good reputation in the Yueqing Industrial Belt. More factories are willing to cooperate with Mr. Chen in product screening and optimization, and various products dominate the top of the category all year round.
However, Mr. Chen was not satisfied with his current results. He knows that in the increasingly “volumetric” cross-border e-commerce industry, long-term principles can only be achieved through continuous learning and continuous evolution. As a result, after years of accumulation, Mr. Chen refined and summed up a set of systematic operating strategies to easily unlock the flywheel of business growth in three steps.
The first step is precise positioning, accurate positioning, and leveraging new opportunities for electrical intelligence
Mr. Chen: “Only brands that truly understand market trends and respond quickly to iterations can win the long-term favor of consumers. Abbottt, Premiere Creative’s creative director.
Based on this concept, Mr. Chen began a journey of “learning both internally and externally”. Externally, based on years of experience in the electrical industry, we dig deeper into market trends, especially the new demand and preferences for electrical products in the European and American markets; internally, combined with product selection trend insights provided by Amazon's official exclusive account manager. Through this two-way fusion and collision, Mr. Chen accurately positioned the blue ocean field in the market—intelligent electrical products.
Mr. Chen believes that with the rapid development of technology and the increasing popularity of AI, intelligent electrical products will be a mainstream trend in the future. On the one hand, consumer acceptance of intelligent electrical products is gradually increasing. On the other hand, intelligent electrical products can greatly improve the efficiency of use of equipment and user comfort.
As a result, Mr. Chen acted quickly and innovated to launch a series of intelligent electrical products. For example, the currently popular Type-C interface is integrated with advanced leakage protection devices and transformers to bring consumers a more convenient and comfortable intelligent experience. It can not only automatically adjust the voltage, easily convert the voltage from 120 volts to 5 volts, but also monitor current, voltage changes, and leakage conditions in real time. Once an abnormality is detected, an early warning mechanism is triggered immediately. This forward-looking design has won wide recognition in European and American markets.
The second step is to build a brand and transform buyers into brand “loyal fans”
As the customer base became more and more stable, Mr. Chen realized that in order to compete on the same stage with major international brands such as Siemens in the field of electrical products, which are highly technical and highly demanding on safety and security, it is essential to build a unique brand image and enhance brand positioning.
Under the professional guidance of Amazon's exclusive manager, Mr. Chen began to make full use of Amazon brand tools, such as brand flagship stores and A+ pages, to carefully create the Bauman brand image, tell the brand story, and convey brand value. At the same time, Mr. Chen also adjusted the marketing strategy, expanding from a single product advertisement to brand advertising and display advertising to attract high-quality consumer groups with a broader vision and more diverse means, and guide them to deeply understand and agree with Bauman's brand values.
This series of initiatives has not only boosted Bauman's brand awareness and reputation, but also brought about a continuous increase in traffic and orders.
Step 3: Strengthen compliance and “protect” business growth
As a leading electrical brand deeply involved in the European and American markets, Bergman knows the importance of compliance. Faced with the complex international compliance system, Mr. Chen chose to work closely with Amazon's compliance manager and compliance service providers to jointly protect the steady growth of the business.
Mr. Chen: “Electrical products are a very special category. We pay particular attention to safety compliance. Thanks to our dedicated account manager's professional compliance guidance and comprehensive services, we have avoided many pitfalls and ensured that our products obtain authoritative certifications such as TÜV, UL, and CSA before they go on the market. Abbottt, Premiere Creative’s creative director.
Through this series of professional and strict compliance procedures, Bauman has not only successfully ensured full product compliance, but also invisibly improved its risk management level and market competitiveness, winning the trust of customers and laying the foundation for long-term development.
Mr. Chen's journey across borders is a “trilogy” that profoundly interprets market insight, brand building, and compliance protection. On this path, he continues to learn, has the courage to experiment, and has led Bauman all the way forward. Finally, for novice cross-border sellers, Mr. Chen also sincerely shared his suggestions: Cross-border e-commerce is a gold mine, but if you want to dig up deep treasures, you need long-term planning and careful cultivation to continuously take root and accumulate experience; at the same time, sellers must also stick to the bottom line and maintain their reputation. This is every entrepreneur's most valuable asset. Only sincere effort and continuous search can pay off.
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