Recently, there's a product that has been generating a lot of buzz in the Amazon product selection circles: the Gua Sha tool. This traditional Chinese medical treatment tool has, surprisingly, gained popularity abroad through the wave of cross-border e-commerce. Now, many Westerners are also getting into the practice of using Gua Sha, with some even sharing their happiness from using Gua Sha tools on social media.
(Image source: Screenshots from foreign social media)
On Amazon, many Chinese sellers continuously research foreign lifestyles and habits when selecting products to sell. However, those selling Gua Sha-related products have taken a "reverse operation" approach. Instead of studying the needs of foreign customers, they start with products that are uniquely Chinese.
This small item is not very expensive; a single Gua Sha tool typically sells for around 10 euros.
(Image source: Amazon)
If the product is bundled with something to differentiate it, such as a bottle of essential oil for Gua Sha or a small roller, the price can nearly double.
(Image source: Amazon)
Despite the modest selling price of 10 euros for a single Gua Sha tool, its profitability should not be underestimated. For example, one product sold for 11.80 euros has a monthly sales volume of 900 units, translating to over 10,000 euros in monthly sales!
(Image source: SellerSprite)
You might find it shocking that such a small item could generate over 10,000 euros in sales per month. Moreover, the SellerSprite plugin shows a gross profit margin of nearly 65%, illustrating the significant monthly profit this product can generate for a seller.
The sales volume isn't even at its peak; according to SellerSprite, sales can exceed 4,000 units per month during the peak season from November to March. Indeed, a single product can sustain a small cross-border team.
(Image source: SellerSprite)
But is this high-margin product still suitable for newcomers? It seems not very accessible now. By analyzing a few leading stores, it's evident that these shops have developed numerous variants and price points for the same product, covering all price ranges from just over 5 euros to 10 euros. With over 30,000 reviews, it's challenging for new products to surpass these established sellers, and there's more than just one such store.
Further analysis with SellerSprite shows a seller concentration of 90.8%, with the top three sellers monopolizing over 80% of the sales. It's likely that the remaining small shops are also subsidiaries of these top sellers.
(Image source: SellerSprite)
The brand concentration is nearly the same as the seller concentration, reaching almost 90%.
(Image source: SellerSprite)
Given this scenario, the market is not conducive for newcomers. Competing seems like going against a multitude of products, but in reality, many of them are owned by just a few sellers who can easily outmaneuver newly launched products. Survival in this market is challenging.
Some sellers might consider creating differentiated products around Gua Sha, but the options for differentiation are limited. The major sellers have already captured potential differentiation points, such as "Gua Sha tool + essential oil" bundles, color variants, and premium packaging options like exquisite metal boxes. Material differentiation, such as stainless steel tools, is also prevalent.
The only potential breakthrough for differentiation might be in functional innovation, but this requires in-depth knowledge of the product and traditional Chinese medicine, which is not easily achievable for small sellers.
If you've also come across recommendations for this product through various media reports recently, it might be worth taking a closer look at this article.
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