Is the distribution model still the first choice for many small sellers to enter the market?

Which model should I choose: general distribution, refined distribution or high-quality products? This has always been a question that many Amazon sellers have been thinking about. Are some new small sellers still only able to choose the general distribution model?

The most obvious advantage of the distribution model is that it requires little investment, but it has many disadvantages, such as high risk of infringement, high return rate of FBM shipments, and it is easy to lose both money and goods. In addition, Amazon platform traffic is more inclined to the FBA model.

The advantage of the boutique model is refined operation, which is more likely to become a hit, and requires precision rather than quantity of products, but it has relatively high requirements for product selection and operational experience; and the boutique model generally adopts FBA delivery, so stocking is required, which is also a considerable capital investment.

However, many sellers in the boutique model have also encountered some other problems during the operation process. Some sellers said: "We have been making boutique products for many years and have "earned" a lot of inventory; others said: "We will starve to death if we make one product a year."

Some other sellers have been continuously investing. The money is in the warehouse, the inventory is exchanged for money, and the money is used to purchase goods again. This cycle repeats. If some products perform well, they can also get profits. If the product performance is average, the financial pressure will become greater and greater.

Of course, in addition to boutique and distribution, there is also a boutique distribution model. The editor learned that at the end of last year, some boutique model companies began to switch to the boutique distribution model.

This type of company focuses on vertical products. Before launching any product, they will conduct market research, analyze competitive products, determine sales targets, finalize operation plans, etc. The frequency of launching new products in a new store is 1-2 models per week, which lasts for about 2-3 months.

In the previous boutique model, one operator was only responsible for 2-3 products, and his daily work was to optimize them. After the model change, one operator can be responsible for more than a dozen products, and divide their energy according to the 80/20 principle. The top products are still finely operated, and the rest of the products only need daily maintenance.

From the experimental results, the revenue has a clear upward trend after the transformation. However, some products cannot be promoted, and at this time, they need to be cleared. However, since the stocking is carried out after market research, the stocking quantity of products with smaller markets is generally not too large, and the cost of clearing the stock will be much lower than the boutique model.

In short, whether it is the boutique model, the fine store model or the mass-market model, they all have their own advantages and disadvantages. Sellers need to choose a model that suits them based on their actual financial situation and risk tolerance. No matter what model it is, a good model is one that can make money.

Amazon

Distribution

Boutique