Cross-Border E-commerce Insights: An Interview with Jianhua

Host: Lisa

Guest: Jianhua

Lisa: We’re thrilled to have an expert with extensive experience in the Amazon ecosystem join us today. He’s not only a successful cross-border e-commerce seller but also an Amazon-certified instructor. He reached out to share more stories and insights about Amazon and cross-border e-commerce. Please welcome Jianhua! Thank you so much for joining us, Jianhua.

Jianhua: Thank you, Lisa, for giving me this opportunity. I’m a listener of your podcast and was inspired by a recent episode about TikTok to come on and discuss Amazon, a major platform in cross-border e-commerce. Let me introduce myself. I’m a cross-border e-commerce seller, primarily operating on Amazon and my own independent website. My main product categories are kitchenware, hardware tools, and automotive accessories. I also run a channel called Jianhua Talks Cross-Border on platforms like Bilibili and Toutiao.

I started in this industry around 2013-2015, initially exploring Etsy, a platform for handmade and customized products, focusing on the North American market. In 2015, I opened an Amazon account but didn’t take it seriously at first. Back then, Amazon was heavily recruiting Chinese businesses and factories, but its traffic wasn’t significant yet. Many of us thought, “Isn’t Amazon just a bookselling platform?” It felt unfamiliar as an e-commerce space. By 2016, I noticed Amazon’s traffic was growing rapidly, and I realized it was a platform worth investing in. Since then, Amazon has been my primary platform. I’m a trading seller, meaning I don’t own factories or do product R&D. Instead, I source products from the market, find suitable brands or supply chains, and identify niche blue-ocean markets—small, underserved segments with unmet demand. My main markets are North America and Europe, with Germany as my primary focus in Europe. Today, I’ll share insights about the current state of the cross-border e-commerce industry, not just limited to Amazon, as well as some lessons learned from my experiences to help newcomers or brands looking to enter this space.

Lisa: Thank you for the introduction, Jianhua. Let’s start with some foundational and big-picture questions. Amazon e-commerce has been around for a while, but TikTok has been a hot topic in recent years. What do you think are the key differences between selling on TikTok and Amazon? Are there people who excel at Amazon but struggle with TikTok, or vice versa, because of specific traits or approaches?

Jianhua: That’s a great question. TikTok, much like Douyin in China, is an interest-based or social e-commerce platform. It’s designed to drive quick purchases—consumers see a 15- to 30-second video and make snap decisions with little time to think. Amazon, on the other hand, is a traditional “shelf” e-commerce platform, similar to Taobao or JD.com. Users go there with a specific purpose, searching or browsing for categories like clothing or seasonal women’s fashion. The intent is deliberate, unlike TikTok, where purchases are often impulse-driven based on what users stumble upon.

Another key difference is efficiency. Amazon has a high output-to-effort ratio. TikTok requires constant content creation to drive traffic, but with Amazon, orders come in while you’re sleeping, eating, or even recording a podcast like this! Amazon handles logistics, returns, payments, and other backend processes. As a seller, I sometimes don’t even see my products—factories handle quality checks, packaging, and labeling, then ship directly to Amazon’s FBA (Fulfillment by Amazon) warehouses. My job is to optimize traffic, listings, and conversion rates, making it possible for one person to manage two to five stores with ease, much like the early days of Taobao.

Around 2018, Amazon was at its peak popularity. You’d hear stories about couples making millions and buying cars or houses in Shenzhen within a year or two. Those stories were real, though they got exaggerated, creating a myth that anyone could replicate that success. The high efficiency and low operational demands attracted many new sellers. However, as more Chinese sellers entered, competition intensified, and the market became more saturated.

Lisa: So, Amazon sounds less demanding than TikTok in terms of operational effort. Does that mean it’s easier for someone doing TikTok to transition to Amazon, or is it typically the other way around?

Jianhua: Most sellers start with Amazon and then try TikTok when they see its potential, not the other way around, since Amazon has been around longer. Many Amazon sellers, noticing TikTok’s rise, test it with categories like beauty tools or home goods—products like curling irons or hair dryers priced around $10-20, which are TikTok-friendly. However, for someone like me selling automotive accessories, TikTok isn’t ideal. You rarely see tires or spark plugs sold there; the audience isn’t right. When TikTok’s popularity surged, some Amazon sellers jumped in but found their products weren’t a good fit. Additionally, TikTok struggles with higher-priced items (say, over $50). Consumers hesitate due to concerns about quality, after-sales service, or certifications, which are stricter on Amazon due to U.S. regulations. TikTok’s looser oversight allows some sellers to bypass certifications, offering short-term gains but long-term risks. This attracts some Amazon sellers to TikTok for products that might not meet Amazon’s strict standards.

Lisa: Interesting. You mentioned focusing on kitchenware, hardware, and automotive accessories. Were these deliberate choices, or did you experiment with other categories before settling on these?

Jianhua: My product choices are based on a framework I developed over time. I prioritize items with high repurchase rates—products consumers buy repeatedly. In North America, for example, mattresses are replaced every three years on average due to ergonomics or hygiene concerns, unlike in China, where people might use the same mattress for decades. In automotive accessories, I target high-repurchase items within the large aftermarket parts market to keep customer acquisition costs low. Kitchenware is another massive market with universal appeal—cooking habits vary, but tools like knives or dishwashers are broadly similar across cultures, minimizing issues like high return rates seen in clothing. I once tried selling sports bras but faced high returns due to sizing and fit differences across racial groups, which was a costly lesson. Kitchenware and hardware avoid such complexities, and I’ve been in these categories for about five years, refining my approach based on experience.

Lisa: So, you’ve had your share of failures, like the sports bra venture. Can you elaborate on that?

Jianhua: The sports bra project was a disaster! I partnered with some strong domestic Tmall sellers who were excited about e-commerce success stories. They had products, supply chains, and capital, and thought, “Let’s create a bestseller on Amazon!” But we overlooked cultural and demographic differences. Sports bras vary by activity level (light, medium, high intensity) and body type, which differs across racial groups. This led to high return rates and a failed project. It taught me that understanding the target market’s diversity is critical. The U.S. isn’t just “Americans”—it’s a mix of ethnicities, and ignoring that can tank a product.

Lisa: You mentioned focusing on Germany in Europe. I always assumed Western European countries were similar, but why Germany specifically?

Jianhua: Germany is the top market in Europe for Amazon. Its economic strength and consumer purchasing power are unmatched, and it has the highest traffic and acceptance of Amazon in the region. Germans value high-quality, high-priced products, allowing sellers to achieve both volume and profitability. Other countries like France or Spain are viable, but they’re often targeted by local Chinese diaspora sellers leveraging language or cultural familiarity. For Chinese sellers like me, Germany is the go-to entry point. Some of my clients selling electronics even price higher in Germany than in China, and the market accepts it if the quality is solid. France leans toward fashion items like perfumes or clothing, possibly due to tourist-driven demand, but its traffic is lower—about 200 million monthly visitors compared to Germany’s 500 million.

Lisa: Which Chinese brands are succeeding on Amazon?

Jianhua: One example is Deli, a stationery brand. In North America, their staplers and similar products sell thousands of units monthly, often ranking as bestsellers. Another is YesWelder, a Wenzhou-based brand targeting DIY and female welders in North America. They’ve built a strong brand by encouraging users to share creations on social media, driving emotional engagement. Their annual revenue is around 500 million yuan, with much of their success coming from B2B deals as their reputation attracts offline retailers. Lock Brothers, a cycling gear brand, is another success, with 1.2 billion yuan in annual revenue, dominating Amazon’s North American and European markets. Their cycling bags and saddles sell exceptionally well, and they have subsidiaries and sub-brands in the U.S., Germany, Australia, and Japan. Pop Mart, known for blind boxes, is also thriving overseas, with 1 billion yuan in international revenue in 2023 and a projected 2 billion in 2024. These brands often stay low-key to avoid excessive competition.

Lisa: Is 2024 a good time to enter cross-border e-commerce, or is it too late?

Jianhua: This question comes up every year! The 2017-2018 period was the “golden age” when money was easy to make. Post-2020, competition intensified with more sellers and factories entering, driving price wars. To succeed now, you need a clear strategy and competitive edge—whether it’s low-cost traffic acquisition, strong product selection skills, or a robust supply chain. For example, PowerPlanet created a robot-shaped power bank, standing out in a crowded market. If you have unique design or innovation, there’s still opportunity. Without a clear advantage, it’s tough—many new sellers pick red-ocean products with success rates of only 5-10%.

Lisa: Some friends in cross-border e-commerce complain about price wars, especially on platforms like Temu, which feel like Pinduoduo with low prices and potential quality issues. What’s your take?

Jianhua: Temu’s “team up, price down” approach mirrors Pinduoduo, relying on subsidies to offer low prices. This benefits consumers but can hurt sellers. For example, if I supply shoes at 45 yuan and another seller offers 25 yuan, Temu prioritizes the cheaper option, potentially leaving me with unsold inventory. Temu’s focus on price over quality can lead to issues like selling unauthorized Disney-themed products, which I find problematic. Amazon’s stricter regulations on certifications and safety reduce such risks. I once sold car jump starters without proper certifications, and when safety issues arose—like melting cables or engine damage—my accounts were frozen, costing me significantly. Platforms like Temu may offer short-term gains but pose long-term risks if quality and compliance are ignored.

Lisa: What’s the minimum setup needed to start on Amazon today?

Jianhua: For a solo seller with 50,000-100,000 yuan, success hinges on deep market knowledge to identify niche, blue-ocean products. For example, in North America, eco-friendly products like reusable cotton tampons (priced at $30-50) are in demand but require sourcing and promotion expertise. With limited funds, you need a broad knowledge base to avoid red-ocean traps. Larger factories or brands need a team of 10-20 people, including operations managers, designers, quality control, and logistics staff, to run a multi-channel strategy covering Amazon, independent sites, and platforms like Walmart. Knowledge and focus are key for small players, while scale and structure matter for bigger ones.

Lisa: Do you need to frequently visit target markets to stay competitive, or are there other ways to stay informed?

Jianhua: Traveling is invaluable—reading books can’t compare to real-world experience. For instance, in Japan, I noticed slippers aren’t divided into left and right feet, designed for quick evacuation during earthquakes. In Dubai, I learned freshwater is scarce, driving demand for efficient irrigation tools and home gardening products. These insights came from observing local life. Without travel, you rely on data reports or online research, which can be misleading. For example, I thought Dubai was all supercars, but locals drive practical SUVs like Toyotas. Visiting markets helps you spot unmet needs, like cooling seat covers for cars in hot climates. If time is limited, focus on high-impact trips to refine your product strategy.

Lisa: Lastly, with the U.S. election hype, are Trump-themed products like bullet-printed clothing mostly from Yiwu, or is there local production?

Jianhua: Yiwu’s too slow for that now. Chinese sellers in the U.S. have set up overseas warehouses with printers to produce T-shirts and hoodies within hours of a trend emerging. Local production is key to capturing time-sensitive opportunities. As for legality, printing a president’s image isn’t infringement unless it’s defamatory (e.g., on toilet brushes). Presidents rarely sue due to high costs and the sheer volume of such products, so sellers can proceed confidently.

Lisa: This has been incredibly insightful, Jianhua. Your detailed examples and practical advice are valuable for anyone interested in cross-border e-commerce. We’d love to have you back, perhaps after the U.S. holiday season for a recap or predictions. Listeners, feel free to leave specific questions in the comments, and check out Jianhua’s channel, Jianhua Talks Cross-Border. Thank you, Jianhua, and until next time!

Jianhua: Thanks for having me, Lisa. I look forward to returning!