Seller story

Annual sales reached 6K million!Starting a business while exploring, post-85 Amazon sellers use AI to “innovate” traditional hardware

July 7, 2023
Reading time about 6 minutes
For many post-80s and post-90s, scanning some of the books and books needed to study is a very common thing. However, more than 10 years ago, the scanning method was still very primitive. Copy shop staff often opened the book, pressed it flat along the spine, and then used an expensive large scanner to do it page by page. Not only was it time-consuming and laborious, but the scanned version often had problems such as page deformation and missing text.
However, many people don't know that this scanning method, which has obvious flaws, is being completely transformed in the intelligent era. Thanks to the innovation and iteration of “Made in China”, smart scanners with high definition, intelligence, and minimal experience have long become standard equipment in the medical, education and other industries.
According to statistics, the global office supplies market is expected to grow from US$177.53 billion in 2024 to US$198,98 billion in 2032, with a compound annual growth rate of 1.44% 1 during the forecast period. The rise of the hybrid office trend in recent years has brought more positive factors to the accelerated growth of this potential circuit. For Chinese office equipment companies, innovation and application of intelligent technologies such as AI and IOT have provided important opportunities for Chinese companies to “overtake curves”, thus breaking through this circuit.
As today's protagonist, Chengzur CZUR has been involved in the innovation of smart office equipment since 2013. By creating a new generation of smart scanners, it has achieved innovative experiences such as curved surface flattening, automatic paging, and automatic angle adjustment, which has solved many of the pain points of traditional scanning. At the same time, Chengzhe CZUR is not only making efforts domestically, but is also bringing innovative products overseas. Through Amazon, it has opened a double track of overseas B-side and C-side. Over the past year, it has achieved 40% + year-on-year growth, and sales on Amazon have exceeded 60 million yuan.
Today, we invited Zhou Kang, founder and CEO of Chengzhe CZUR, and Li Dongsheng, director of overseas e-commerce channels, to share how Chengzhe CZUR has entered the high-value product circuit with core technology, rapidly grew overseas, and opened up a new increase in B-end enterprise customers through Amazon corporate purchases.
Don't make homogenized products!
Start a business while exploring to seize the global trend of smart offices
It is the consensus of industry leaders that in the digital age, all industries are worth being redone. However, it is not an easy task to use digital intelligence innovation to reshape products. Zhou Kang, a post-85 talent with many entrepreneurial experiences, abandoned the popular smart home circuit and instead discovered problems such as low accuracy and complicated operation in “scanning” in the commercial office field. To this end, he formed the CZUR startup team in 2013 to break into the “scanner” category, which is a niche but has huge potential, and use AI and software to transform traditional hardware to create a new generation of “all-type smart scanners” that can easily handle various scenarios such as office and reading, and completely reshaping the “scanning” experience.
Zhou Kang: “Many people simply understand intelligence as using AIOT and IOT technology, but we think the essence of intelligence is to solve complex scene pain points and problems. For example, we use machine learning for image optimization, OCR recognition, and 3D surface restoration, the first company in the industry to upgrade images, the first to introduce preview screens, and the first to use AI to solve curved surface scanning problems. More importantly, the B-side circuit has a longer decision chain and a slower renewal cycle, which gives startups like us enough time to polish product details and experiences. "
In three years, Chengzhe CZUR set up software, hardware and manufacturing teams in Dalian, Shenzhen, and Dongguan to integrate the advantages of local policies, talents, supply chains, etc., to become a unique product innovation company. R&D personnel account for more than half of all employees, and have obtained 130+ patents from around the world. Focusing on the main line of smart offices, CZUR has also expanded a series of innovative categories such as smart meetings. For example, the recently launched StarryHub conference star integrates a series of functions such as projection display, conference camera, and omnidirectional microphone to provide a better solution for one-stop meetings.
Zhou Kang: “Technological breakthroughs have brought a better experience, as well as higher value and core competitiveness, so that we don't “roll” with others. Up to this day, we haven't made anything similar or similar to others. For example, there is a fan in the projection. The noise of the fan will interfere with the sound quality of the sound pickup, so we use a lot of AI technology to polish the sound pickup effect. But we have a principle that our products may seem more expensive than others because of their focus on R&D, innovation, and quality, but they are more expensive than they are valuable. "
However, with the rapid advancement of intelligent innovation in China and the successive entry of many Internet giants, domestic competition for smart devices is also becoming more and more intense, and the growth pressure for adult CZUR is also increasing. Under such circumstances, for CZUR, an adult with independent core technology, it has become a natural choice to go overseas and seize a new outlet for smart offices around the world.
Zhou Kang: “Our first product was launched on an overseas crowdfunding platform, and it achieved one of the best results in crowdfunding for Chinese brands at that time, attracting more than 60,000 Backers and raising an amount of 7 million US dollars. Subsequently, we began to lay out cross-border e-commerce through channels such as Amazon. For us, going overseas is not a grand concept. We have developed the world's leading smart office equipment, and the overseas market is larger, and the acceptance of high-customer unit price products is higher. At the same time, we also have a good business atmosphere and competitive environment. Good products are more likely to be recognized by consumers. Naturally, going overseas is a natural thing. "
Li Dongsheng: “The reason we chose Amazon was mainly due to four considerations. First, Amazon has a large number of users with strong purchasing power, and there is enough room for growth for our innovative products. Second, based on trust in Amazon, it is easier for overseas users to make purchasing decisions on high-cost products and accelerate initial sales conversion. In addition to this, FBA's timeliness and service are also important reasons why we choose Amazon. FBA can provide a better service experience, and logistics timeliness is also guaranteed. Most importantly, as an office device with extremely B-side attributes, Amazon corporate purchases can bring natural B-side traffic to adult CZUR and accelerate business growth. Abbottt, Premiere Creative’s creative director.
At present, Chengzhe CZUR's revenue on various Amazon sites has reached 60 million yuan, achieved rapid annual growth of 40% last year, and is still developing by leaps and bounds today.
More than just hardcore technology
Innovate operations to break through with cutting-edge products
In choosing overseas destinations, Chengzhe CZUR positions its core sites in Germany, Italy, France, and Spain in the US and Europe based on its own product positioning and local market conditions. These regions not only have the demand for smart office transformation, but also have the purchasing power for high-end products, which has brought huge business opportunities for adult CZUR to go overseas.
However, the unfamiliar market environment and unknown consumer groups have also caused CZUR, an adult who is new to overseas, to encounter quite a few challenges. First, European and American companies and consumers have higher standards for office experience and equipment expertise. Second, overseas consumers also place particular importance on privacy and information security issues. To boost sales on the B-side circuit of office equipment, innovative products alone are far from enough. To this end, Chengze CZUR is also using more effective product selection and refined operation to meet the needs of overseas consumers, and has taken root in the field of overseas office equipment.
01 First, better meeting user needs is a prerequisite for a successful overseas trip. Based on in-depth insight into core consumer groups, Chengze CZUR has launched a series of office products loved by overseas companies and individual users on Amazon. One typical example is the ET series scanner.
Li Dongsheng: “For example, the ET series high-end scanners we launched solved a pain point that other products simply couldn't solve — scanning books. The audience for this type of scenario includes not only industry scenarios such as filing, but also lifestyle needs such as preparing study materials; in fact, it is a huge necessity. Then, through the introduction of a series of AI technologies, we have provided overseas companies and consumers with a cost-effective option priced at 5,600 US dollars, which can perfectly replace high-end products worth over 10,000 US dollars in the past, and have become a popular product of adult CZUR. Abbottt, Premiere Creative’s creative director.
Creative images created by adult CZUR for ET series high-end scanners
02 Second, for innovative products that are truly disruptive, how to make overseas audiences clearly and accurately perceive them is a very difficult thing. The adult CZUR has put a lot of thought into various channels of conversation with consumers.
Li Dongsheng:”
No.1 In terms of listing construction, since our products are highly innovative, there are no other examples to learn from and compare. In order to be able to properly deliver information, we first cooperate with overseas local teams to help us make some ideas, because the locals know the local culture best; second, we pay great attention to using video materials. The information conveyed by 100 images may not be as good as a video, so we pay great attention to showing product details clearly in a video.
When making videos, we have a little trick, which is to create a “timeline” of the video, so that users can jump directly to the part they want to know, making it easy for users to understand the product features. Furthermore, in response to the high standards of information security for overseas users, we will indicate on all listings that the device does not collect user data, emphasizing data security.
No.2 In terms of marketing and promotion, our product is a relatively niche and innovative product, and Amazon does not have a clear positioning for our products. For example, the smallest node of our scanner is located within the Document Scanner, but this category is also quite granular. How can we do more targeted advertising?
Our idea is to target based on the scenario. For example, when we promote the StarryHub conference star product, we can't put it in the projector category, so we first do the promotion based on the “conference room” user scenario, and the second is to reach users who want to buy smart whiteboards. The usage scenarios for such users are also very consistent. Based on this strategy, we can then carry out advertisements such as product promotion and brand promotion videos, etc., so we can achieve more accurate audience targeting. Abbottt, Premiere Creative’s creative director.
Comparison images used in the StarryHub conference star product page
03 By using Amazon FBA, Chengzur CZUR solves logistics problems while also providing consumers with a better service and experience, further accelerating the rate of business growth.
Li Dongsheng: “We have used FBA since the beginning. Overseas warehouses are just inventory from other channels. Because out of stock has a huge impact on sellers' operations, it may cause upfront costs to become “sunk costs,” and the one that has the most guarantee in terms of logistics timeliness and service experience is definitely FBA. In order to give users the best experience, they will definitely use FBA's logistics services. Moreover, FBA's management is relatively efficient. Compared with using third-party logistics services, it can save a lot of time and make operations more efficient. Abbottt, Premiere Creative’s creative director.
Amazon Business
Efficiently break through business bottlenecks and steadily leverage new B-side sales growth!
As far as office categories are concerned, centralized procurement by enterprises is one of the core sales channels, which makes B-side business the most valued racetrack for adult CZUR. In recent years, the rise of hybrid office models and the wave of intelligent transformation have significantly accelerated the process of upgrading office equipment in global enterprises, creating a very attractive blue ocean.
In order to seize the opportunity, from the beginning of entering Amazon, Chengzur CZUR used Amazon corporate purchases as an important way to develop overseas corporate customers and win huge orders. In recent years, the B-side business has grown by leaps and bounds through corporate purchases.
In Amazon Business Purchasing, CZUR's business users mainly come from four industries, including commerce, healthcare, government, and education, which mainly meet the needs of material filing and material digitization. Up to now, Chengzhe CZUR's B-side sales on Amazon have reached about 20% of total sales!In the process of establishing connections with industry users and completing sales transformation, Chengzhe CZUR also felt the support and assistance provided by corporate purchasing in the following areas.
1 Compared with the traditional foreign trade B2B sales model, Amazon Business Purchase greatly simplifies the transaction process, making it easier and more efficient to obtain B-side traffic and facilitate large transactions. Moreover, if B2B transactions are supported and endorsed by a third party platform, it will definitely make it easier for both parties to the transaction to establish trust and facilitate conversion.
2. The CZUR product itself has the dual properties of C-side and B-side. At the same time, B-side customers require higher product expertise and are more suitable for CZUR's high-end product series.
3 Judging from the data, the performance of corporate buyers in terms of return rate was significantly higher than that of individual users. The C-side was 8%, while the B-side was only 3%, which greatly reduced the operating costs of adult CZUR. We participated in Amazon Advertising's Amazon Brand Lift (Amazon Brand Lift) user research project, and the CZUR brand ranked first in terms of popularity of scanners of the same type. The brand loyalty of B-side users is also significantly higher than that of C-side users.
4 Amazon also has an index for the invoice defect rate. The IDR must not exceed 5%, otherwise it will have an impact on account operations. Fortunately, we can use Amazon VAT Calculation Service (VCS) on the European site. We can generate VAT invoices or receipts for customers to download for free through Amazon, which helps improve IDR performance.
One order is worth 30,000 Euros! Use corporate purchases to win super big orders
Chengzur CZUR has also received several large orders through Amazon Business Purchases. According to Li Dongsheng, Chengzhe CZUR's biggest order came from a European company. At the time, in order to meet the demand for telecommuting, this company purchased more than 200 scanners at once from Amazon, with a total value of nearly 30,000 euros. Currently, many companies are reaching out to the bulk procurement needs of overseas B-side users through tools such as inquiry and quoting machines purchased by enterprises, and are promoting online transactions for bulk commercial procurement.
Quotation Quoter streamlines transactions and wins big orders
💁🏻‍♂️ Custom Quote Engine (Custom Quote Engine) is an automated online tool launched by Amazon Business Purchase. It allows sellers and business buyers to directly make inquiries and quotes for large orders online. It not only greatly simplifies the transaction process, but also improves transaction efficiency.
📢 For commercial procurement orders placed through the inquiry and quotation machine, some sales commissions with a turnover of 10,000 US dollars or more can enjoy a “stepwise reduction”, and the minimum sales commission can be reduced to 5%.
Judging from commercial procurement requirements, enterprise customers generally have more professional requirements for product parameters, and also pay more attention to whether there is professional after-sales service. For companies with real R&D and operation capabilities such as Chengzhe CZUR, this just happens to be a good opportunity to overtake cars in curves. However, in order to actually reach corporate customers effectively through corporate purchases and seize B-side super traffic, Mr. Li also shared the operating methodology he has summed up in actual combat.
No.1 Use B-side exclusive pricing tools to boost traffic and conversions
We set corporate prices and quantity discounts (BPQD) as a key step in developing the B-side circuit. We set corporate prices for all products, and set reasonable quantities and sufficiently attractive discounts based on past experience and data insights — about 5% for up to 5 devices, 10-15% for 5-10 devices, and up to 20% for 10 or more devices. Through this tool, Chengzhe CZUR provides corporate buyers with more competitive prices, facilitates entry into the purchasing lists of corporate customers, effectively increases the average number of customer orders, and accelerates sales conversion.
After setting up quantity discounts, Chengzhe CZUR's B-side revenue increased by 44.6% year-on-year, and sales of multiple orders increased markedly.
Enterprise Price and Quantity Discounting (BPQD) usage path
● Individual ASIN settings: Seller Central > Inventory Management > Business Price/Add Quantity Discounts
● Bulk ASIN Setup: Seller Central > Determine Price > Automate Pricing > Create a New Pricing Rule
● Automatic Business Discount Analysis: Seller Central > B2B > Business Discount Analysis
No.2 Increase exclusive promotions to accelerate sales conversion
We will also actively use exclusive promotions for corporate purchases, such as the rework season and back-to-school season, to promote brand awareness and sales growth. This year, we will also have more promotion plans. If the product matches the characteristics of the rework season and return to school season, we will definitely participate actively.
Back to School Amazon Business Shopping “Back to School Season” Mass Buyers One-stop Direct Service*
As a T1 level event, “Back to School Season” aims to help corporate buyers buy education-related supplies for the new school year and prepare for the new school year by creating one-stop shopping. Through this campaign, corporate purchases provide buyers with various discounts such as wholesale of large packages, promotions, and corporate discounts. In 2024, the “Back to School Season” will also launch an education industry special day from August 19 to August 23. The education industry special day will be held during the peak shopping season. Based on past experience, customer spending during the peak back-to-school season will increase by more than 60%.
ASINs eligible for the campaign will be automatically fetched and displayed on the event front page and other official promotion channels.
*The event will be held from June 10 to September 28, 2024 in the US and Canada, and the event dates in the five European countries (EU5) are tentatively scheduled to start on September 2. To participate in the corporate back-to-school season event, you must set up a “corporate price/quantity discount” that meets the requirements, have an ASIN rating of 4 stars or above, and meet the relevant categories specific to the event.
No.3 Use B-side display promotion ads to increase exposure
Finally, we will also actively try to buy newly launched tools or products. For example, we have also tried the recently launched B-side display promotion ads, which are very helpful in increasing brand exposure.
As cutting-edge technology such as AIGC sets off a new wave of intelligent transformation, “AI+” will also create more new tracks to go overseas. Today, more and more Chinese intelligent manufacturing with forward-looking ideas and hard core strength are sailing overseas. As one of them, Chengze CZUR will also continue to adhere to the product-driven path and explore new high-quality new routes for China's new technology to go overseas with technological innovation, outstanding quality, and a strong brand.
What advice would you give to sellers looking to set up a European site?
Li Dongsheng: For sellers who have just entered the market, I recommend getting the product right first to ensure that the product has a comparative advantage. This is the foundation for long-term growth. In addition to this, we need to output some high-quality content, don't completely copy other people's product pages, and have some innovative points of our own. I suggest that it's best to work with a local team to export some content; high-quality content can be used for a long time. The third is advertising. Newbie sellers are still advised to consider the two levels of advertisement, conversion (conversion), and only then have a chance to form a higher conversion when traffic or exposure increases.
New Seller Onboarding Guide Video
Before entering Amazon, please read the registration guide video, prepare relevant registration materials in advance, understand the specific registration process, and help you start a store smoothly!