DON’T DO AMAZON: Failed Stories #4
In the wild world of e-commerce, it’s tempting to believe that a product crushing it in one market will automatically slay in another—especially on Amazon in the U.S. After all, a great product is a great product, right? Well, not always.
Take one of our clients, for example—a public company that’s practically the go-to shampoo and conditioner brand in Taiwan. They came to us with big dreams of dominating Amazon in the U.S. But spoiler alert: that dream didn’t exactly hold water (or shampoo).
From Taiwan’s Star Shampoo to Amazon’s Newbie
Now, let’s dive into the story. When a famous Taiwanese shampoo brand came to us, they were ready to take over Amazon in the U.S. Back home, they were a big deal—everyone knew them. But here’s the thing about the U.S.: just because you’re a star in Taiwan doesn’t mean anyone here knows your name. That’s like being the coolest kid in your hometown and then moving to a new school where no one even notices you.
Amazon’s Taiwan team sent them to us for help, so we jumped into a meeting. We looked at their numbers and said, “Okay, let’s figure this out.” First, we saw that in Taiwan, people always search for their brand. It was a hit! But in the U.S.? Crickets. Nobody was looking for them. If they were to start on Amazon, they’d start as a new brand no one had heard off.
Then we talked about their product: shampoo and conditioner. Sounds simple, right? But shampoo is heavy. And when you’re shipping heavy things across the world, the costs go way up. On Amazon, shampoo products’ pricing is very competitive and quite low, so the profits would be tiny. Even if they sold a ton, they wouldn’t make much money.
Here’s where it got really tricky: after diving deeper into the market research and more meetings, we realized that even if this brand found initial success, they still wouldn’t hit their ambitious sales targets. Why? They’re a public company, so expectations are sky-high, which means selling a few hundred bottles every month wouldn’t be good enough. With no brand recognition and Amazon’s shampoo market already crowded with low-price options, it was a no brainer we suggested they wouldn’t go on Amazon. Add in Amazon’s razor-thin margins and you’ve got a recipe for disappointment. Sure, they could grow slowly and build their brand over time, but a fast, large-scale success? Not happening. Honestly, we had to admit that skipping the U.S. market entirely might be their smartest move.
So, we had to tell them the truth: “Don’t expect miracles. It’s going to be hard, and you might not see the results you want right away.” It wasn’t easy to say, but honesty is our thing. And guess what? They appreciated it. Sure, it wasn’t what they wanted to hear, but they thanked us for being real.
Why such big brands can fail on Amazon?
You must now wonder why such big brands could fail Amazon. Well, you can’t force your brand into a country because markets are like ecosystems—each has unique preferences, buying habits, cultural nuances, and competitive dynamics. Just because your product is a hit in one region doesn’t mean it will resonate elsewhere.
- Lack of Brand Awareness
In your home country, your brand might be a household name, but in a new market, you’re starting from scratch. Buyers need time and reasons to trust you. Without this trust, your brand is just another name in the sea of products. - Different Customer Preferences
What appeals to customers in one country may not appeal to another. For example, beauty products like shampoo often need to align with local hair types, climate, or cultural beauty standards. - Market Saturation
Some markets are already dominated by well-established players. Without a clear point of differentiation, your product might get lost among competitors. - Regulatory Hurdles
New markets often have specific legal requirements (e.g., ingredient restrictions, labeling laws, or safety standards). Ignoring these can lead to product bans or bad publicity. - Logistics Challenges
Shipping, tariffs, and taxes can make your product too expensive or too complicated to compete with local brands.
Then What Should You Do Instead ?
1. Research the Market Thoroughly
- Understand your target audience’s preferences, habits, and needs.
- Analyze your competitors to see what they’re doing right and where the gaps are.
- Test the demand for your product before investing heavily.
2. Start Small and Local
- Begin in a region or city with demographics similar to those of your successful markets.
- Partner with local distributors or retailers who understand the market.
3. Adapt Your Product and Messaging
- Tailor your product to meet local preferences. For example, adjust formulas, flavors, or sizes to fit regional needs.
- Localize your branding and marketing. Use language, imagery, and values that resonate with the audience.
4. Build Awareness First
- Focus on creating a buzz about your brand through social media, influencers, or collaborations with local businesses.
- Leverage digital platforms to tell your story and build trust.
5. Be Patient
- Entering a new market is a long-term investment. Success takes time and persistence.
When Amazon (or Another Big Platform) Isn’t the Answer
If your product isn’t ready for a broad platform like Amazon, try:
- Regional e-commerce platforms: These are often more in tune with local preferences.
- Social media-driven sales: Platforms like Instagram, TikTok, or WeChat let you build an audience and sell directly.
- Direct partnerships: Collaborate with local stores or online influencers who already have the trust of your target market.
- Events and pop-ups: Launch your brand in-person to connect with customers directly.
Forcing your brand into a new market is like planting a tropical tree in the desert—it won’t thrive without the right conditions. Instead of trying to “force fit,” focus on learning, adapting, and genuinely connecting with the new audience. Success doesn’t come from making noise; it comes from making sense.
At the end of the day, we’re not here to make empty promises. We’re here to help brands find the best way to succeed. And sometimes, that means telling them when something isn’t a good fit. If you’re ready for honest advice and real results, we’d love to help. And hey, why not try us out for three months for free?
Book your Free Consultation with us, or get in touch here: [email protected]
Because sometimes, the truth hurts—but it also sets you up for success. Let’s make it happen!