Should You Choose Chinese Auto Accessories on Amazon?
The commonalities of Chinese automotive brands in the U.S. Amazon category:
- Same quality, 30% cheaper than American brands.
2. Half of the brands have no logos on their products (for the other half that do have logos, they’re designed to be easily removable).
3. Chinese Amazon merchants (including those on Shopify) have to consider FBA and logistics costs, leading to some trade-offs in packaging. For example, floor mats are designed to fold in the middle and efforts are made to minimize issues with warping due to folding when customers receive them. There are many similar examples.
4. Within the same category, Chinese brands must have a significant price advantage. If American brands focus on materials, craftsmanship, and quality to pursue a high-end route, Chinese brands can’t keep up. However, the cost-performance ratio of Chinese brands is extremely high, completely outclassing American competitors and intimidating other companies looking to enter the market.
5. Chinese brands don’t see American brands as competitors; instead, they see other Chinese brands as their rivals. Many of these brands may come from the same city, such as more than 50% of seat cover sellers on U.S. Amazon or their suppliers, which are from Tiantai County, Taizhou City, Zhejiang Province.
6. Chinese brands excel at innovating in details, accurately capturing customers’ subtle needs. However, their quality control isn’t as strong as that of American brands, especially in electronic and lighting accessories.
7. 90% of Chinese brand operation teams are based in China, where they don’t have access to American cars. They need to get 3D scanning data from the U.S., but often the data isn’t satisfactory. Some areas, like under the seats, are inaccessible to scanners, which can affect the molding and fit of their products.
8. Chinese sellers have to obtain 3D scanning data from the U.S., design and prototype in China, then ship to the U.S. for installation and testing. If the test is unsatisfactory, they have to adjust the molds again. Once the requirements are met, they start mass production and ship via FBA to the U.S. This whole process usually takes 3-6 months.
9. Considering the above points, it’s truly remarkable that Chinese brands account for half of the market share in the automotive accessories category on U.S. Amazon. If Americans want a slice of the auto parts market, they really need to learn from this.
10. Lastly, while the profit margins of Chinese brands on U.S. Amazon may not be as high as their American counterparts, they’re much more comfortable than their Chinese peers on Taobao. Their profits are quite substantial, so they value their reputation and standing on U.S. Amazon and always strive to provide the best after-sales service possible.
