• August 24, 2020
• By Zack Franklin
• Amazon Hacks
• 1

From 0 to 5.5 Million Orders a Year – The Chinese Secret for Scaling an Amazon Business

There are many ways to scale your Amazon business. 

Sell in more countries, Sell on new platforms, Add more products 

But there’s another way to scale that I rarely see western sellers use. 

It’s widely used by the largest Amazon companies in China, and it’s the easiest growth method I’ve ever seen.

This tip alone is literally a business multiplier that has taken great brands and transformed them into empires. 

I can’t believe I’m going to share it, but here we go.

There are four major ways to add serious volume and scale to your business

1. Expand to a new country
2. Expand to a new product category
3. Expand to a new platform
4. Create a new brand

Each of these comes with different chances of success and failure, and some scaling methods are much easier than others.

Let’s talk about them.

Selling in a new Country:

Pros: This can quickly add volume to your sales, and make you feel like an international business rockstar when you wake up to sales coming in from all over the world.

Cons: But there are major complexities. You have new tax laws, new logistical challenges, new product compliance requirements, and a different competitive landscape, and add some language barriers on top, and in many ways, it’s just like launching for the first time.

Category Extension

Pros: Releasing new product categories under your brand can help you make more money from your existing customers with cross selling. You don’t really need to employ new staff members or to learn a new marketplace

Cons: You do need to find new suppliers and occasionally deal with other unforeseen obstacles like category approvals and a new competitive landscape

Create a New Brand with the SAME products

Many Chinese Sellers take their best selling products, put them in a new package, with a new logo, and sell it on Amazon as a new brand.

If you search for certain products, it looks like an entire page of different sellers, but really one seller might own all those listings. Completely dominating the category.

Here’s why it’s a genius idea:

1. Simple and Fast: Other than some design work, there’s nothing to it. You can have a new brand up in a week or two. You can use the same supplier, same staff, same logistics, and even the same keywords.
2. Take up more space on the shelf – Amazon is basically a giant retail store – the more space you take up on the shelf, the more sales you get. With this strategy, you can own entire categories and unleash the potential of your products.
3. Inside information: You already know everything about the category you’re selling in – the competitive landscape, keyword data, deep product knowledge – you can reuse this information and pump out multiple brands.
4. High chance of success – this is the type of scaling method that has the highest chance of success.

Here’s an example. Looking at the best sellers in lightning cables – we can see two brands owned by the same company. One brand highlighted in blue, another in red. They sell more than $70 million a year with this strategy.

If you’re already successful in one category – the easiest way to scale is to keep launching the same products under a new brand. Try it out for yourself and watch your business grow