Small teams can make a lot of money on Amazon

In the fiercely competitive e-commerce arena of Amazon, people tend to think that large companies have the advantage with their strong capital and abundant resources. However, the facts prove that small teams can also make a lot of money on Amazon.

Some real cases are eye-catching. For example, a small team of three people made a net profit of over one million yuan on Amazon last year. Its main product cost less than 10 yuan but it was able to obtain super high profits. There is also a five-person team focusing on the kitchenware category, with monthly sales stable at around 500,000 US dollars, relying on the ultimate product quality and impeccable customer service. These fully show that small teams are like flexible speedboats in the vast market of Amazon. As long as they find the right direction, they can ride the wind and waves.

1. Accurately select products and find the right track

Small teams can focus on one or two categories and do them to perfection. Some teams specialize in pet supplies, striving for perfection from product selection to listing optimization, from PPC to customer service, so that the main product BSR ranking continues to rise, the repurchase rate exceeds 50%, and the average review is 4.7 stars.

2. Low cost, high profit

Small teams are streamlined, and everyone is a generalist, and can take turns to take on operations, customer service, advertising, etc. For example, a five-person team can not only save costs but also improve efficiency in this way, and its profit margin is about 10% higher than the industry average.

3. Be flexible and act quickly

In the ever-changing market environment of Amazon, the flexibility of small teams is fully demonstrated. For example, after discovering the demand of a niche market, one team was able to complete the entire process of product selection, procurement, and listing within three weeks, and the sales volume was 200% higher than expected.

1. Choose the right person

The team is small and everyone is important. We need to select people who are passionate and have a strong learning ability so that they can handle a variety of jobs.

2. Find the right track

It is crucial to choose a differentiated track, which can be a niche market or a special category. For example, some teams focus on a niche category in pet supplies and eventually become hidden champions in the category.

3. Cost Control

Small teams should be good at taking advantage of low costs and allocating funds reasonably, so as to “save where possible and spend where necessary.”

A husband-and-wife shop is a typical and efficient model for small teams. A husband and wife team, one is responsible for product selection and procurement, and the other is responsible for operations and customer service. Through focus, tacit understanding, and clear division of labor, they only do three SKUs but do each to perfection, achieving a monthly income of US$50,000. Although this model is small in scale, it is flexible, efficient, and has a high profit margin.

In short, when it comes to Amazon, a small team can really make big profits with its advantages of flexibility, efficiency, and focus. Of course, running a small team will also face challenges such as limited funds and insufficient manpower, but as long as the right approach is used, these can be overcome.