Seller story

After being on Amazon for 2 months, sales nearly doubled by 600%. How did this seller do it!

July 7, 2023
Reading time about 4 minutes
They all say “seize buyers' demand = seize business opportunities”. Recently, Xiaobian discovered that there is such a treasure brand, HARDURA, which has seen huge business opportunities in a small place. It has transformed from a foundry to become a major multinational brand over 20 years, and has achieved a total cross-border sales of nearly 60 million US dollars. What brand can be this great!Today, Xiaobian invited Mr. He, the founder of the brand, to talk about what needs to be done to achieve this achievement.
Phase 1: Start from a foundry to become a “multinational factory” in the commercial kitchen industry
Around 2003, Mr. Ho, who is still working in foreign trade, came into contact with an American company that needed to purchase products such as workbench sinks in China. However, in a year of helping customers find suppliers, they did not find any manufacturer that met the requirements. So why not make your own kitchen equipment for the US market?HARDURA was founded in 2005. Focusing on commercial kitchen supplies, HARDURA has continued for nearly 20 years. HARDURA has developed into a group enterprise with comprehensive talent reserves, strong technology research and development capabilities, and a comprehensive overseas channel layout. It has 4 subsidiaries, overseas branches, and a scale of close to 1,500 people, and has gone through several stages of trading overseas, products going overseas, and brands going overseas.
Founder Ho said that the establishment of the company was a coincidence and followed the trend, but I believe everyone who knows the HARDURA story will understand that this is a story of seizing a business opportunity, getting through five hurdles, and losing six generals, and the effort paid off. Why don't you check it out again!
During the start-up period of the enterprise, technical details were polished from zero to meet overseas market standards
In the exploration phase when the company was first established, HARDURA took many detours and paid a lot of “tuition fees” due to ignorance of market demand and product requirements, and lack of talent.
For example, the US market requires products to be smooth, have no obvious scratches, and no burrs or sharp edges. However, at the time, the country lacked such production habits and production experience, so enterprises began training workers and training export specialists from scratch. In addition, the US requires NSF hygiene certification for kitchen equipment that comes into contact with food. While learning standards, companies improve production processes and production technology. It took about a year to gradually achieve standardized production and obtain certification.
Factory sellers increase R&D and supply chain investment and continuously strengthen corporate innovation
In the first ten years, the company was at the stage of consolidating its own production strength and lacked R&D capabilities to carry out product innovation. However, with its own accumulation and expansion of enterprise scale, HARDURA is determined to set up its own R&D team and enrich patents, combined with the advantages of its own factory. Innovate and improve the structure, process or function of the product, so that the product cost is lower, the transportation is more convenient, and the user experience is better.
Take a bread rack as an example. The package length is nearly 1 meter 8, which is expensive to transport and easy to damage. HARDURA evaluated and analyzed the product and decided to split the product from the middle, change the package to half the original height, and then assemble it after arriving at the destination. This move not only satisfies user needs, but also reduces transportation costs. In addition, the square workbench takes up space and is inconvenient to store, so I drew on other foldable furniture and worked hard on the table legs to successfully turn the workbench into a foldable structure. Starting with gradual innovation and R&D investment, HARDURA gradually has its own R&D team, standardized production line, and mature supply chain.
Phase 2: Seek progress in stability and complete the leap from factory to brand
After experiencing the pain and exploration stage in the early stages of starting a business, HARDURA needed more orders and customers to meet the needs of enterprise development, while also moving towards becoming a professional commercial kitchen equipment brand. However, at that time, on the one hand, traditional cross-border trade communication and transportation were not convenient, and how to develop markets and find new customers became the biggest problem; on the other hand, improving one's own technology and mastering exclusive R&D patents became an attack point for the long-term development of enterprises.
I have tried many ways to connect with overseas business buyers
HARDURA has tried searching for buyer information on the Internet or posting its own supply information to develop business; it has also tried searching keywords to find buyer information, making email or international phone calls; and finding relevant companies through NSF certified websites to find opportunities. The difficulties of traditional foreign trade in customer acquisition and communication can be seen, but it is through this method that HARDURA gradually expanded its business over a period of several years.
Improve the quality and efficiency of production processes, and focus on both hard power and soft power of enterprises
Changes in sales channels and consumer purchasing habits may lead to future prices becoming more and more transparent. This requires enterprises to be closer to consumer needs in terms of service, respond more quickly, and design products closer to market needs. HARDURA has introduced automated equipment and digital systems to strengthen production management and supply chain management, and enhance the brand's hard and soft power under a steady business strategy.
The growth rate of traditional foreign trade is slowing down, and Amazon is chosen to open up a new e-commerce circuit
Today, HARDURA has become one of the leading suppliers of commercial kitchen supplies in the US, but it has also discovered some bottlenecks. For example, traditional channel capacity is limited, and overall industry scale growth has stagnated. Cross-border e-commerce has become a new force for enterprise growth, and HARDURA chose to concentrate limited human, financial, material and resources to grow bigger and stronger on Amazon. In the process, Amazon account managers will continue to provide sellers with first-hand information, professional analysis, data, and service support to help sellers build their own brands.
Phase 3: Entering Amazon Business Buying and Starting a New Commercial Procurement Process
According to Mr. Ho's original perception, Amazon is a shopping channel for C-end consumers. However, in the process of communicating with the Amazon account manager, it was discovered that commercial cooking has huge sales potential on the B-side of Amazon, and that Amazon has long been a common choice for many overseas corporate buyers and organizations to make commercial purchases, so they decided to enter Amazon corporate shopping and focus on developing products and operations in the B-side field. HARDURA uses its own accumulation in R&D, products, operations, etc., to combine Amazon's purchasing and procurement advantages. In just a few months of operation, a huge increase was unleashed. During the Prime membership day, 30% more advertising expenses were invested to achieve a 3-fold increase in sales, of which B-side sales accounted for about 25%. After the promotion ended, sales continued to grow.
B-end product selection ideas, step by step, stepwise product testing and upgrading
While leveraging the company's own product and production capacity advantages, it also uses tools such as Amazon's product selection compass and business opportunity detector to analyze big data and better identify consumer needs. At the initial stage, it was discovered through data that users had more demand for products such as workbenches, hanging boards, bread racks, etc., so they chose such products to successfully open up the market. Subsequently, HARDURA plans to launch different products at different stages of development, such as 3 months, 6 months, and 1 year of launch in the store. Create a professional and all-round one-stop shopping store through a new stepwise method of product testing and payment.
01 Bread rack selection ideas
🔹 Sales data: The sales volume of bread racks continues to be stable, and the purchase rate is above average. Although the sales volume is small, for customers with hard needs, this product is a necessity, and there is a certain market. The product return rate is low, which reflects the high quality reliability and user satisfaction of the product;
🔹 Market data: The number of bread rack sellers on the market is small, and their relative competitiveness is small, which provides favorable conditions for HARDURA to have an advantage in the market. As people pay more attention to healthy living and baked goods, bread racks have great potential for market growth as a practical kitchen appliance;
🔹 Our own advantages: As a manufacturer, we can design and produce bread racks of various materials, sizes and styles to meet the needs of consumers for individualization and customization. This provides HARDURA with an opportunity to innovate and differentiate, attract more consumers, further expand market share, and achieve significant profit growth.
02 Wash basin selection ideas
🔹 Sales data: The overall search volume and sales volume of wash basins showed a steady upward trend. In addition, the return rate was low, which reflected reliable product quality and high customer satisfaction;
🔹 Delivery data: The proportion of advertising is relatively low, which means that the product is more attractive, there is a certain amount of organic traffic, and there is no need to invest large-scale advertising costs to increase exposure;
🔹 Own advantage: There are few competitors in the market. As a manufacturer, HARDURA has a competitive cost advantage, which can not only control profit margins, but also create more attractive profit models.
B-side pricing and strategy suggestions: Use product differentiation and added value to enhance competitive advantage
Unlike C-side retail pricing, B-side customers usually purchase more at one time and may purchase a complete product portfolio at one time. At the same time, corporate buyers prefer discounted packaging prices such as 9.20% off for 2 items and 15% off for 5 items. Using the pricing tool “corporate price and quantity discount” for Amazon business purchases, different levels of discount discounts can be provided, increasing the willingness of business buyers to purchase and stimulating the number of purchases. In the future, HARDURA will plan to provide one-stop shopping for B-side commercial kitchen equipment and supplies. Buyers can not only buy all product combinations in the same store, but also get more discounts through bulk purchases.
In addition to the pricing strategy of volume discounts mentioned above, considering actual situations such as product costs, labor costs, and cross-border transportation costs, it is difficult to gain an advantage through a “price war”. How can we “use our strengths to overcome each other's shortcomings”?How can you break the gap with your competitors and get more sales?HARDURA's strategy is to “focus on product differentiation and enhance product value at the same price”. On the one hand, we use our own research and development capabilities to create patented products to obtain a unique competitive advantage; on the other hand, from the perspective of user experience, we increase the added value of our products as much as possible by improving packaging quality and customer service quality at the same price as competing products.
Brand building experience sharing: follow a long-term principle, practice brand internal and external skills, and tell a good brand story
Since deciding to do cross-border e-commerce, HARDURA has had a very clear plan in terms of personnel, products, and operations.
In the enterprise itself, set up a cross-border e-commerce team to let professionals do professional things; start from the user's mindset and shoot the actual scene of building a commercial kitchen to strengthen the customer's familiarity with the product and trust in the brand. Externally, use Amazon brand operation tools to enhance the beauty of the brand's flagship store and enhance user friendliness; combine the positioning of its own products, launch product promotion advertisements within the site to expand communication; and optimize product keywords, product detail pages, etc., to obtain more organic traffic.
Logistics experience sharing: build a more flexible logistics system to ensure logistics timeliness
Unlike the original offline traditional foreign trade container shipment, Amazon Logistics (FBA) is used for transportation to ensure timeliness. HARDURA is also actively planning to set up new overseas warehouses and build a more flexible free logistics system for the transportation and inventory management of large products.
Insight into the commercial kitchen category market outlook & official selection recommendations
Market demand is strong, and the scale of commercial kitchen categories continues to expand
According to relevant data, the global kitchen equipment market is expected to reach US$40.9 billion by 2027, with a CAGR of 5.4% *. The kitchen space we are used to has great business opportunities, and there is a strong demand for kitchen equipment on the C-side and B-side. Kitchen equipment, including cooking equipment, storage and transportation equipment, commercial refrigeration and ice machines, tableware cleaning equipment, food and beverage preparation equipment, and service equipment, has also become a hot category.
* Data source: https://www.statista.com/statistics/1095667/global-food-service-market-size/
Complete industrial chain and rich resources
From a global perspective, China is one of the main producers of commercial kitchen equipment. From a domestic perspective, the regional distribution of commercial kitchen equipment manufacturers shows certain regional characteristics, mainly in East China with Zhejiang as the center, South China with Guangdong as the center, and North China with Shandong as the center.
🔹 Qingdao, Binzhou, Zibo, Linyi: freezers, cooking equipment, stainless steel workbenches
🔹 Hangzhou, Ningbo, Shanghai, Yongkang, Wenzhou, Taizhou: freezers, ice machines, stainless steel products, plastic tableware, plastic packaging machines
🔹 Guangzhou, Foshan, Dongguan, Zhongshan, Jieyang, Chaozhou: refrigerators, cooking machines, cooking equipment, stainless steel products, tableware, knives
Recommended popular choices for commercial kitchens
01 Commercial refrigerator
🔹 Hot sales site: US station
🔹 Price range: $2,000-3,000
🔹 Recommended size: 49 square for 2 doors; 72 square for 3 doors
🔹 Consumer concerns: Currently, stainless steel kitchen refrigerators are mainstream; in addition, beverage refrigerators are also receiving attention
🔹 Sales advice: The category is relatively traditional. The gap between refrigerator products is actually small, and there is not much penetration of Chinese sellers. The threshold is mainly certification, logistics, and after-sales capabilities. Competition is relatively small
02 Commercial workbenches
🔹 Hot sales site: US station
🔹 Price range: $150-200; $200-300
🔹 Recommended Size: 72" X 30"; 36" X 18"
🔹 Consumer concerns: NSF certification, whether it is removable, sturdy and durable, with or without a bottom partition, and whether it is easy to assemble. Negative reviews focus on dimensional deviation, instability, plate bending and fracture, etc.
🔹 Sales suggestions: There are many product lines, many sizes, and many entry points. It is a white steel kitchen product. Similar products include commercial stainless steel sinks and stainless steel shelves. Competition is relatively small. If the product is cost-effective, it is easily favored by corporate buyers
03 disposable cup/tray/bowl
🔹 Popular sites: US site, European site
🔹 Price range: $20-40; $60-70; $80-100; $100-150
🔹 Recommended size: 72" X 30", 36" X 18"
🔹 Consumer concerns: Mostly used by office workers on a daily basis, mainly coffee cups. Consumers are concerned about their durability, cost performance, insulation, and bad reviews also focus on water leakage and size
🔹 Sales suggestions: cut into high unit prices, large packaging, and lower logistics costs; large volume competition is fierce, and mature operation is required
🔹 Industrial belt recommendations: Anhui, Yiwu, Hangzhou, Guangxi
As can be seen from HARDURA's enterprise development and traditional foreign trade transformation experience, factory sellers rely on their own R&D, product, supply chain and other advantages to accumulate advantages, and combine the user advantages and tool advantages of Amazon corporate purchases to successfully stimulate enterprise growth!Start Amazon Business Purchase and instantly get B-side C-side bilateral traffic!
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