From a small team of 4 people to number one in the tent category, UNP completed the transformation from OEM to brand in less than three years. How are they overcoming the seasonal inventory dilemma?How to stick to the boutique route in the face of fierce competition?How did this small team of 4 support the big North American market?This article will reveal their path to success.

Seller profile
George UNP Chief Operating Officer
Li Jingjing: Head of UNP Brand Operation
Joined: 2020
Entry site: US station
Main categories: camping products such as tents and canopies
Sales performance: Amazon tent category TOP1

George:
“Being overwhelmed by the brand and lacking bargaining power prompted us to decide to build our own brand. Abbottt, Premiere Creative’s creative director.

Initially, UNP mainly provided OEM services for major offline stores and well-known camping brands in the US. With professional technical strength and a mature supply chain system, they have established a solid business foundation in the field of foundry. However, in their long-term cooperation with the brand, they gradually realized a pain point: despite having deep supply chain accumulation and technical accumulation, the bargaining power is always in the hands of the brand.

In 2020, this turning point came. In a humble office in Longhua, Shenzhen, a small team of only 4 people decided to start their own brand path and choose to rely on Amazon to challenge the North American outdoor market.

In the first year, they invested about 10 million in preparation capital, focusing on camping products such as tents and canopies. The product line covers tents of various sizes for different household types, as well as derivatives such as sunshades and car tents. Through refined operations and continuous product innovation, they have gradually gained a foothold in the market.

From absolute weakness to absolute advantage
Today, this small team, which started from scratch, has grown to number one in Amazon's third-party tent category, and the annual stocking scale is more than ten times larger than at the beginning of the business. Their transformation story is a vivid microcosm of Chinese manufacturing companies breaking through traditional models and embracing new retail.

The difficulty of operating this category of outdoor tents can be called the “three highs and one advantage” of cross-border e-commerce: high unit prices, high inventory risk, high logistics costs, and a very long seasonal cycle. On Amazon, most products can be sold steadily all year round, but UNP faces extreme seasonal challenges.

George:
“Our peak season is short and mainly focuses on the March-September months. Abbottt, Premiere Creative’s creative director.
This intense seasonality poses huge challenges to inventory management and logistics distribution.

The three difficulties of seasonal selection
● High stocking pressure 🤔: For seasonal products such as tents, you need to start stocking 3-4 months in advance. “We need to plan our inventory for September in April, and we need to consider October sales in May. ” Li Jingjing said. Too much stocking poses the risk of inventory backlogs, and insufficient stocking may miss out on peak sales seasons.
● Long logistics chain 😣: From production to final delivery, the cross-border logistics process is complicated and the cycle is long. “If you simply rely on shipping, the cycle will be very long and difficult to control. ” In the early days, the team's logistics were blocked due to the pandemic, and a large backlog of goods could not be sold until the second year.
● High risk of being out of stock 😖: “For product links that already occupy a leading position, the cost of being out of stock is far higher than the cost of inventory. George emphasized, “Once out of stock, not only are sales opportunities lost, but it is also very expensive to re-promote. Abbottt, Premiere Creative’s creative director.

Breakthrough strategy: Multi-warehouse collaboration solution with FBA as the core
Faced with these challenges, UNP chose FBA as its core logistics solution, which greatly helped it improve traffic conversion, delivery experience, and operational efficiency.

Li Jingjing:
“FBA guarantees both conversion and timeliness. Including FBA, which has strong traceability, I still recommend that buyers use FBA to test products. Sellers can save a lot of labor costs, time and communication costs, and focus more on operating our products and links. Abbottt, Premiere Creative’s creative director.

Operational strategies derived from trial and error
● Multi-warehouse collaborative layout
➤ Use the FBA warehouse network to achieve fast delivery
➤ Automatic replenishment is achieved through AWD as a “reservoir” for inventory adjustment and efficiency
● Accurate inventory planning
➤ Maintain inventory levels for 3-4 months during peak season
➤ Maintain a safety inventory for 1-2 months during the off-season
➤ Dynamic adjustments based on previous years' sales data and market trends
● Optimizing logistics costs
“With FBA, we've reduced our logistics costs from over 15% of our initial sales to now 6-8%. ” George said that for large items, FBA's delivery cost advantage is obvious.
● Improve user experience
“The core consideration in choosing FBA was the buyer experience. ” The team found that compared to self-delivery, FBA had clear advantages in terms of conversion rates and user reviews. Through FBA's standardized delivery service, they successfully reduced their return rate and kept it below the industry average of 8.7%.

George:
“The market was overheated in the first year, and everyone was desperately trying to kill prices, including big sellers from some offline brands who also cleared their products on Amazon, causing prices to reverse. Abbottt, Premiere Creative’s creative director.

When competitors adopted a drastic price reduction strategy to clear inventory, UNP chose a unique path and insisted on the boutique route. “We stick to our own pace and give consumers a stable expectation. Abbottt, Premiere Creative’s creative director.

● Focus on new products with a high success rate
Li Jingjing stressed that UNP controls the annual renewal rate at 20% to 30%, but it will seek opportunities through market search trends and thoroughly analyze buyer reviews to explore demand.
“New product development is not about large numbers, but about high success rates. For example, product upgrades and iterations are carried out through high-frequency terms and buyers' concerns. The success rate of new products developed in this way is relatively high, and now many products can enter the top 50 BS categories. Abbottt, Premiere Creative’s creative director.

● Pay attention to customer feedback
UNP is very concerned about customer feedback. Through the FBA+vine model, they have found a good way to improve feedback. George emphasized:
“What we want most is a better customer experience. He will only give you a good review if his experience is good. What we are most afraid of is that the buyer will receive the item. Leave me a bad review because it is not on time or because of logistics issues. A bad review is fatal for the product to accumulate weight in the early stages. So our choice of FBA is definitely a safer and more efficient method. Abbottt, Premiere Creative’s creative director.

● Long-term inventory management
George advises new sellers to:
“For seasonal products, instead of worrying about inventory costs, it's better to focus more on how to avoid being out of stock. Inventory investment should be viewed from a long-term perspective, as regaining traffic is often more expensive. Abbottt, Premiere Creative’s creative director.

● Systematic return prevention and control
In response to the return issues that many sellers are concerned about, UNP has adopted a preventative strategy:
➤ The product description should be accurate, especially when it comes to key information such as size and properties
➤ Send regular caring emails to buyers to promptly detect and resolve issues
➤ Prepare common damaged parts in advance to avoid returning the entire item
➤ Set a reasonable quantity limit to prevent malicious returns

This sound business philosophy has been proven in practice. Even when logistics were blocked and markets were in turmoil during the pandemic, UNP maintained steady growth.

George：
“Our first year was really difficult, but with the experience we have gained, we are now able to control the pace very well. Doing cross-border e-commerce requires a long-term approach. The key is to be patient, insist on good products and good services, so that we can make cumulative progress every year. Abbottt, Premiere Creative’s creative director.

For new sellers, especially those who want to try out larger items, the UNP team has its own unique perspective.

George：
“The easiest mistake newbies make is being too conservative. For example, control inventory for fear of backlogs. As a result, the product improved and was sold out, so the initial investment was in vain. Abbottt, Premiere Creative’s creative director.

Beginner's Guide: Avoid These Common Mistakes
“Many newbies are afraid to try FBA because they are afraid of the high cost of FBA. “George put it bluntly,” but judging from our experience, newbies should actually choose FBA. “The initial energy is limited, and the focus should be on products and operations rather than dealing with complicated logistics issues,” he explained.

● Identify your supply chain advantages
Li Jingjing suggested that newbies should “identify their strengths.”
“We must rely on market data, combine our supply chain advantages, and explore the real pain points of our customers. Abbottt, Premiere Creative’s creative director.
He stressed that we should not just pursue hot models, but rather seek product improvement directions from real customer feedback.

● Fast product testing through FBA
When it comes to evaluation strategies, both supervisors think FBA is the better choice.
“Although the upfront cost will be higher, the advantages of FBA in terms of conversion rate and customer experience are significant. We've found that new products that have passed FBA testing receive more real customer feedback and are more likely to accumulate positive reviews. Abbottt, Premiere Creative’s creative director.

● Data-driven inventory management
Li Jingjing gave specific suggestions:
“New products can be tested in small batches first, but be sure to have enough safety stock for 2-3 months. Use sales data for the previous two weeks to determine trends and adjust replenishment plans in a timely manner. Abbottt, Premiere Creative’s creative director.

● Entrepreneur mentality
George emphasized:
“To do cross-border e-commerce, you must have the mentality of an entrepreneur. You must not only calculate financial accounts, but also dare to invest. Instead of worrying about costs, it's better to find a way to make a good product and a good service. With a good customer reputation, investment will return sooner or later. Abbottt, Premiere Creative’s creative director.

● Be patient and keep accumulating
Li Jingjing concluded:
“The most important thing is to be patient. Don't expect it to happen overnight; believe that as long as the direction is right, time is on our side. Abbottt, Premiere Creative’s creative director.

From foundry to category number one, UNP's experience may inspire more cross-border e-commerce newbies: cultivate categories, focus on experience, and be patient. These simple business practices are still worth adhering to in the present.