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Seller story
I'm satisfied!After the 90s, young couples in Guangdong started businesses across borders and earned 15 million dollars a year in just 3 years. How did they do it?
July 7, 2023
Reading time about 8 minutes
A post-90s husband and wife from the Middle East Railway Station. The two started a business into a mature cross-border company, and became the top 50 in the Middle East within 2 years. Annual sales exceeded 15 million within 3 years, and the first popular fascia gun in the Middle East Station. Chatting with Carl for the first time, it's hard to imagine this shy boy from Shanwei, Guangdong in '93, running an Amazon Middle East store with his wife who earns 10 million a year. In '18, Carl and his wife embarked on the path of cross-border entrepreneurship. They chose the Middle East Station, which most people were unfamiliar with at the time, and became the first group of “crab eaters.” In the early days of starting a business, the young couple worked multiple jobs on product selection, restocking, customer service, and settling accounts. They focused on sales during the day and trying to find a way out at night. All they wanted was to work hard to earn money and live a good life. Unexpectedly, their business grew bigger and bigger in 4 years. Within 2 years, they reached the top 50 in the Middle East, their annual turnover exceeded 15 million yuan within 3 years, and they also sold the first popular fascia gun in the Middle East!The company also grew from a two-person husband and wife store to a cross-border startup with functional departments such as alternative products, operations, and finance. It is worth mentioning that his team members are all like Carl, a group of post-90s who dared to act.
Speaking of successful experiences, Carl is very humble and even a bit shy; but when it comes to product selection, buyer insight, promotion and operation, etc., he is head-headed, as if he had an endless experience to share. Let's talk to him today. What is the secret to success in the Middle East?
Talking about opportunities, “The Middle East website was just opened to Chinese sellers, so we will soon enter”
Carl, who has been struggling in the industry, has been targeting the cross-border e-commerce industry for 15 years and decided to enter the market with a few friends by starting a business at a low cost. But after 3 years, he and his friends didn't test the waters as they expected. Carl became independent from his previous company in '18 and decided to start a business with his wife. It also coincided with Amazon's opening of a new Middle Eastern site for Chinese sellers, so the UAE site became a new starting point for the post-90s couple to set sail. “Back then, we learned that e-commerce in the Middle East still has a lot of room for development, and Amazon is likely to be an opportunity as a global e-commerce site.” In fact, the Middle East has always been a blue ocean temptation that cross-border sellers cannot resist. Regardless of the growth rate of e-commerce or the purchasing power of young consumers, they have unique advantages, and the rise is only increasing unabated. In addition, the local light industry in the Middle East is underdeveloped, and 90% of e-commerce products rely on imports1. Among them, Chinese products are particularly popular among locals. Furthermore, since Amazon acquired Souq.com, the largest online retailer in the Middle East region, in '17, it has attracted many Chinese sellers to join the ranks.
Carl said, “There are still relatively few sellers entering the new site, competition is low, and there are few SKUs, which gives us more room to play and is easy to get in. Furthermore, although the e-commerce penetration rate is high in the Middle East website, there are not many local e-commerce businesses. Amazon is a famous top student in the industry, and it is undoubtedly our first choice. 。“
Referring to whether the current Middle East is still full of opportunities, Carl believes that the development of the Middle East is not only unsaturated, but that “opportunities” and “challenges” coexist, and that the future can be expected. “The Middle East region has a high proportion of online consumption, sufficient demand, and great potential. The key is how to develop new products and impress young people in the Middle East with creativity. Abbottt, Premiere Creative’s creative director.
Speaking of product selection, “We were the first to sell fascia guns in the Middle East”
“By seizing mainstream consumers, we can target the direction of product selection. ” In terms of product selection, Carl has a style that dares to think and break through in the post-90s. “The online consumer base of the Middle East Station is young, and the acceptance of foreign products is high, which makes it easy for us to bypass mature and popular products on the market and discover more opportunities for new Blue Ocean products.” The new site is a double opportunity for new hot products, and Carl clearly grasped the focus of product selection. Carl's first hit, the fascia gun was born as a result. In '19, Carl discovered that fascia guns were sold out in the US, but they were vacant in the Middle East!After seeing this huge business opportunity, Carl used data from the US station to find manufacturers, polish his own brand products according to his own design ideas, and became the first seller to sell fascia guns in the UAE.
As a result, the product became an instant hit, and it also saved him his first pot of gold since starting his business. Of course, Carl is also good at using Middle Eastern consumer preferences and cultural characteristics to do a good job in product optimization, iteration, and new product development. Carl always pays attention to buyer reviews and explores product deficiencies and more potential business opportunities through communication with buyers. “Customer word of mouth and real feedback is the real competitive 'powerful tool” '. At the same time, his R&D team regularly studies influencer products on domestic and foreign social media, and through comparison data and buyer feedback, he finds potential hits suitable for the Middle East website. “Many young people in the Middle East like to play games, so we tried big game derivatives, such as e-sports tables and chairs; in addition, the birth rate in the Middle East is high, and baby products are also the direction we want to try. Abbottt, Premiere Creative’s creative director.
People who have no foresight must have immediate worries. After all, the vacant products on one site are limited, requiring talent and luck, but product quality is a hard threshold that can be controlled. “Product selection is only the first step. Your quality control determines how far you can go. Carl added, “Our products are checked repeatedly before they are shipped because the quality is related to the return rate and will affect the brand's reputation in the long run. Abbottt, Premiere Creative’s creative director.
Speaking of profit, “the profit of a Middle Eastern site in one order can even reach the three orders of a mature site”
“Second, high profits are also the focus of the company's survival. The profit of a Middle Eastern site can even reach three orders for mature sites. ” Carl added. Middle East stations generally have higher profit margins than other sites. Take the UAE site and Saudi site as an example. Compared with mature US sites, the revenue and profit are high at the same price, which greatly reduces the trial and error costs for new sellers.
Stages of development
American station
AE
Saudi station
Comparison
Selling prices
$12.99
AED47.7
≈$12.99
≈$12.99
SAR48.72
≈$12.99
≈$12.99
Commission
15%
-$1.95
-$1.95
11%
AED5.25
≈$1.43
AED5.25
≈$1.43
10%
SAR4.87
≈$1.3
SAR4.87
≈$1.3
The UAE has 27% lower commissions than the US;
Saudi Arabia has 33% lower commissions than the US
Saudi Arabia has 33% lower commissions than the US
Weight Handling fee
-$3.47
AED6.56
≈$1.79
≈$1.79
SAR2.82
≈$0.75
≈$0.75
The UAE has 48% lower shipping costs than the US;
Saudi Arabia has 78% lower shipping costs than the US
Saudi Arabia has 78% lower shipping costs than the US
estimate
AMAZON
Weight Handling fee
AMAZON
Weight Handling fee
$7.57
AED35.89
≈$9.77
≈$9.77
SAR41.03
≈$10.94
≈$10.94
The UAE's profit is 29% higher than the US;
Saudi Arabia makes 45% more profit than the US
Saudi Arabia makes 45% more profit than the US
Middle East site profit vs mature site profit
*Exchange rate: 1 USD = 3.75 SAR = 3.67 AED
*Exchange rate: 1 USD = 3.75 SAR = 3.67 AED
Speaking of this, Carl also emphasized his trust in Amazon Logistics (FBA). “We use FBA for 90% of our products. They are reliable and trouble-free, and the logistics cost of delivering large products is still low. Abbottt, Premiere Creative’s creative director.
Speaking of operations, “Sometimes advertising is more useful than promotion!Abbottt, Premiere Creative’s creative director.
Carl also confessed that the Middle East Station, a blue ocean opportunity, is no longer a secret; the days of loud and prosperous fortune are over. Although 7 points depend on product selection and 3 points on operation, after implementing the product, this 3-point operation is the key to success or failure. In terms of promotion, Carl also has his own financial accounts. “New sites have lower advertising fees than mature sites, but the ROI is higher than mature sites.” Carl shared his operating experience. “For example, I also invested 20,000 yuan in advertising expenses on my Middle East website and other website stores. The Middle East website can recover 8-100,000 profits, and the return rate is as high as 30%-40%, but other sites are only about 30% of the Middle East website.” “Especially during the non-promotion period, advertisements can achieve results similar to big promotions. For this reason, we often use advertisements to make up for the lack of regular traffic. ” Carl is more fond of advertising. “Moreover, the advertising fee for the Middle East website is the same as the concessions of discounts.” “If you want to further increase your exposure, you also need to do a good job of optimizing your listing. Use different Amazon tools to create diverse content in an effort to retain customers and improve page conversion. ” Carl added enthusiastically.
Talking about the future, “Persist in innovation and continuous category expansion”, “Branding is a long-term priority, and compliance is a trend”
As for the future, Carl is looking forward to his brand. In addition to continuing to cultivate the UAE and Saudi sites, he is also planning to launch more new sites.
In terms of product selection, Carl has always used the mindset of continuous “innovation” to seek change, explore potential demand, and lead the new blue ocean circuit with creative new categories.
In terms of strategy, it will develop from commercialization to branding, strive to improve the stability of the supply chain, and strive to step out of the brand's momentum on the original refinement route.
In the long run, Carl will pay more attention to strict customs clearance, taxation, and product control, and compliance. This is a trend, and it is also a necessary path for cross-border business to grow steadily and farther.
In terms of product selection, Carl has always used the mindset of continuous “innovation” to seek change, explore potential demand, and lead the new blue ocean circuit with creative new categories.
In terms of strategy, it will develop from commercialization to branding, strive to improve the stability of the supply chain, and strive to step out of the brand's momentum on the original refinement route.
In the long run, Carl will pay more attention to strict customs clearance, taxation, and product control, and compliance. This is a trend, and it is also a necessary path for cross-border business to grow steadily and farther.
Carl is the epitome of a seller on the new site. He moved from the UAE site and quickly took advantage of the new Amazon site to quickly gain a place in the Middle East and founded his own brand. The blue ocean effect of the Middle East was fully reflected in him and is worth learning from. Under the epidemic, domestic and mature websites have serious e-commerce inflows. The Middle East website is unique due to its natural advantages such as high e-commerce penetration rate, high purchasing power, low competition, high profit, and low cost, and its “money” power is limitless.
The data shows that:
1. The scale of e-commerce is rising: It is expected that by the end of 2022, all e-commerce sites in the Middle East will increase by 31%, Saudi Arabia by 27%, and Egypt by 33% 2.
2. E-commerce sales are impressive: The pandemic has boosted e-commerce growth in the Middle East. It is estimated that by the end of 2025, overall e-commerce in the Middle East will reach 50 billion US dollars, an increase of 14% 3.
It can be seen that the Middle East Station is full of blue ocean opportunities. It is not too late to enter the market now. At the same time, stabilizing the supply chain, improving product quality, deepening brand cultivation, accurate promotion and compliance, and more localized thinking is also the general trend.
The data shows that:
1. The scale of e-commerce is rising: It is expected that by the end of 2022, all e-commerce sites in the Middle East will increase by 31%, Saudi Arabia by 27%, and Egypt by 33% 2.
2. E-commerce sales are impressive: The pandemic has boosted e-commerce growth in the Middle East. It is estimated that by the end of 2025, overall e-commerce in the Middle East will reach 50 billion US dollars, an increase of 14% 3.
It can be seen that the Middle East Station is full of blue ocean opportunities. It is not too late to enter the market now. At the same time, stabilizing the supply chain, improving product quality, deepening brand cultivation, accurate promotion and compliance, and more localized thinking is also the general trend.
Source:
1.https://istizada.com/blog/e-commerce-in-the-middle-east/
2.https://www.menabytes.com/ecommerce-mena-2022/
3.https://www.kearney.com/communications-media-technology/article/?/a/gcc-e-commerce-unleashed-a-path-to-retail-revival-or-a-fleeting-mirage
1.https://istizada.com/blog/e-commerce-in-the-middle-east/
2.https://www.menabytes.com/ecommerce-mena-2022/
3.https://www.kearney.com/communications-media-technology/article/?/a/gcc-e-commerce-unleashed-a-path-to-retail-revival-or-a-fleeting-mirage
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