How many sales models are there for Amazon sellers? Advantages and disadvantages

Product selection is the key to opening a store on Amazon, but the store opening model will affect the store's operating direction. Different business models have different operational focuses. So, how many sales models do Amazon sellers have?

There are three main sales models on Amazon, which are commonly referred to as: mass sales, fine sales, and high-quality products.

The operating methods and product selection models corresponding to these three sales models are very different:

1. Distribution model

In fact, as the name suggests, the distribution model is to upload a large number of various products to the store, and increase the store's traffic and conversion through a large number of links. It is a wide-net model.

This model is suitable for the early days of Amazon. When combined with the self-delivery mentioned earlier, it can reduce costs, quickly test products, and increase the probability of hot products. It is more suitable for novice sellers who have just entered the market.

However, the disadvantage of this model is that the operation requires tedious and non-technical product uploading, and the store products are messy, which is not conducive to long-term development.

2. Boutique model

The main route is small and beautiful. Sellers focus on a certain niche and have independent research and development technology. Generally, factories or large sellers do more, and the typical brand is Anker.

There will not be many high-quality products, and we will make segmented vertical categories, which means we can deeply cultivate a single category to form our own product series and build a category moat.

Disadvantages: The capital investment is relatively large, and the working capital is all in the goods. If the supply chain is not strong enough, problems will easily arise.

3. Fine Paving Mode

The boutique model has been popular among small and medium-sized sellers in recent years. It selects products with better performance through early distribution and continues to promote them in a boutique model.

Disadvantages: Multi-link operation is a heavy workload, and the models tested in the early stage may not perform as expected after increased promotion, or may be subject to malicious competition from competing products, which will still lead to a backlog of goods.

Generally speaking, there are three main sales models for Amazon sellers: one is the distribution model, one is the boutique model, and the other is the refined distribution model.