Anyone who knows Amazon knows that the Amazon platform has two different operating models, one is the no-source distribution model, and the other is the Amazon boutique operation model. Many novice sellers are confused about these two modes. What is the difference between these two operating modes? Is it better to choose to distribute goods or to choose to make high-quality products when doing Amazon?
In response to this confusion, let’s talk about the difference between Amazon’s distribution model and Amazon’s boutique operation, as well as suggestions on how to choose an operation model. I hope it will be helpful to novice sellers!
The difference between the distribution model and the Amazon boutique operation model
Distribution model : Amazon distribution is one of the more common ways for sellers to operate stores. The so-called distribution means selling multiple SKUs through multiple accounts. For sellers who have unclear positioning, do not know how to select products, and are eager to place orders, distribution is the first choice for promoting stores.
In fact, the distribution model is relatively simple to operate, because it does not require stockpiling of goods and has relatively low capital requirements, suitable for start-up individuals or small teams. Some ERP systems can be used to collect products from domestic e-commerce platforms, and then upload them to Amazon stores for sale after screening and modification. The distribution model does not require you to find logistics or produce products yourself, which saves many operational steps for small and medium-sized sellers. Especially for novices, they can start with a small-scale distribution model. There is no need to invest much in the early stage. If it is a small team of several people, one person can manage a store.
Amazon boutique operation model : The boutique model is an application model that focuses on product selection and marketing. Even the distribution model will develop towards the boutique direction in the later stage.
The literal meaning of boutique mode is that we choose products and optimize the listing pages in a more meticulous manner. This mode is more suitable for testing which product has better sales after the distribution mode is stable. We focus on building this product, packaging the product, taking product display pictures, and attracting more buyers' attention. After that, this product will be sent to the warehouse departments of Amazon sites in various countries, and orders will be shipped directly from the warehouse.
Combination of early distribution and later high-quality products
The above is the difference between the two Amazon operating methods. Compared with the two, the boutique operation model will be more profitable than the distribution model, because the boutique model can be understood as a later transformation of the distribution model, and this transformation needs to be transformed under the precipitation of the distribution model. Any product that can become a high-quality product must be a hot-selling and high-profit product, but the operation of a high-quality product also requires relatively high operational skills.
There are not too many requirements for distribution on Amazon. You don’t need to stock up in the early stage. You just need to collect and upload, edit the product information, modify the product pictures, and then export the table to the Amazon store. The operation is very simple. The boutique model is more troublesome and requires greater investment, especially in product selection and operational promotion, which requires more time and energy.
In general, there is no absolute distinction between Amazon's boutique operation model and its distribution model. The key lies in which model is suitable for your current resource allocation. Then, a better operating model should be to adopt the distribution model in the early stage and then adopt the boutique model in the later stage, which is a more ideal operating model.
No matter what you do, you must recognize the characteristics of Amazon's two basic operating models. I hope that all Amazon sellers can gain something from this article. The above is the relevant content about Amazon's operating model. If you want to get more knowledge about Amazon, please continue to pay attention!
