Hello friends! Continuing in the series of Amazon business tutorials, selling on Amazon with FBA form. Today Dozaa will discuss with you the topic of Hijack and Private Label. These are two schools that make FBA opposite, causing much controversy among FBA players. So, what exactly is Hijack? What is Private Label? Why is it such a hot topic over the years? And finally, which school should I follow? Let’s analyze and find out with Dozaa!

1. What is Amazon FBA

?FBA is Amazon’s sales processing service applied since 2006. In short, you send goods to Amazon’s warehouse and conduct sales. When an order is placed, Amazon will automatically pack, ship to your address and support customer care services on your behalf.

Watching: What is Hijack?

What is FBA? Overview of Amazon FBAAmazon FBA Process Skills for doing business on Amazon

When doing FBA, there will be two forms that you often hear people talk about. Those are Hijack and Private Label, each form has its own advantages and disadvantages. Each person will also have different views and opinions about these two schools. Therefore, in the article, Dozaa will clarify important issues for Hijack and Private Label, giving you a better overview before making your choice!

2. Hijack

2.1 What is Hijack?

Hijack is roughly understood as the sale of a branded product of another person. That is, when you find a product that is selling well, you source goods to import and sell competitively with the previous seller.

The biggest benefit of the Hijackers is not having to spend money to run product launch campaigns. By selling products based on existing ASIN codes, they inherit the product ranking indicators on Amazon that have been made by previous sellers, and passively bring in orders.

For example products at this link:

An Indian seller who is Hijacking this product is Green Shadow. To distinguish if it is Hijackers or not, go to the storefront link as shown in the picture. Here you see this seller selling dozens of products. Each product carries a different brand. Meanwhile, you only see Life Simplify selling only 1 brand, Fit Simplify.

A Hijackers

Visit this Hijacker store!

Lots of brands guys

2.2 How to do Hijack?

Basically, the Hijackers will also go through all the stages in the FBA process. However, instead of analyzing the market, looking for new – unique – strange products, they focus on finding best-selling products on Amazon, products that already have a certain level of sales. Next, they also have to find suppliers, negotiate prices and complete the process of listing goods, shipping goods to Amazon warehouses.

There is a point to note when following the direction of Hijack that there will be brands that allow you to sell products with their brand, such people are so kind, so wonderful. But there are also brands that do not allow it, you need to contact them to ask for the right to sell before importing. You can apply for the right to sell all products of that brand or only sell 1 product with a certain ASIN code.

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But don’t be too happy, the truth is harsh. Once the brands didn’t want to, no matter how much you begged, the answer was still “NO”. This is also very understandable, because no one wants the products that they have researched, spent a lot of money to launch… until there are results, other people sit and do not benefit.

If you are, do you agree? ????

2.3 Pros and cons of selling on Amazon with Hijack

2.3.1 Advantages

Low investment capital: Selling on Amazon in the form of Hijack, you only lose money for importing goods and storage fees. In addition, it does not take any more fees. No need to do marketing: Because based on the ASIN codes that have already been ranked, sellers do not have to pay much attention to marketing for the product. Sales come completely passive. Quick capital turnover: Small capital + available sales. Sometimes when goods have just entered the warehouse, there is a huge sale, so they quickly recover capital and profit.

2.3.2 Disadvantages

Low profit: Products with good rank, stable sale and potential are very sought after by Hijackers. And you know, when the product and service specifications are similar, the competitive factor here is PRICE. Many Hijackers are willing to sell at very low prices, with little profit even breaking even. High competition: Hijackers will have to compete directly with sellers selling the same ASIN. Not only that, but in the future, other potential competitors may appear at any time, as long as they see that the product can be beneficial to them.2.2 Pressure from Hijackers

Take a passive position: The first passive is probably the right to sell the product that Dozaa thinks is the most important. It would be great if brands let you sell it. But what if brands disagree? Many Hijackers “sell under” without caring about the main seller. And the end is when the goods have been warehoused, already list for sale, it was discovered and received an email asking to take the product down, otherwise it will be reported to Amazon. If it were you, how would you deal with that pile of inventory?

Supplier: Hijack products are all original products, not changing any specifications. Even the product description when listing on Amazon must remain the same. Therefore, when looking for suppliers, Hijackers are also under great pressure to find suppliers whose products meet those criteria.

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Customer: This is indeed a very, very passive factor, but Dozaa still has to list it. Because in the end, the decision of who to buy is up to the customer. Whether it’s Hijack or PL doesn’t matter. So, sometimes you don’t wonder why you invest a lot of money on promotion, the price is also very competitive, but customers go to another guy’s store just because it’s “HEAUTIFUL”! ????

2.3 Hijacker mindset

When starting a business in any field or industry, thinking is always a prerequisite. Determine the success or failure of the entire project. For Hijackers is no exception!

Vision: Yes! It is not only the long distance that requires vision. These Hijackers have very good vision. They see the big picture of the market they participate in. Where will they stand in that picture, what and how to survive and develop in this harsh global competitive environment.

Know the Playground: It is a very interesting fact that Hijackers are very knowledgeable about Amazon. They have a bed with Amazon, see it as a second home, as their lover. They quickly grasp and update Amazon’s new regulations, news or events. And most of all, they know every nook and cranny, even down to each extremely small sub-category on this world’s largest trading floor.

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Analytical skills: Hijackers are very good at product analysis. They only need to look at the chart to know the potential of that product. From the selling price like? When should the price increase? When to discount? When will sales increase, will decrease? How many competitors are there?… from there making the right decisions when choosing products, storing products. Avoid keeping inventory too much, as well as out of stock for a long time.

3. Hijack is sustainable when selling on Amazon

3.1 The estrangement of the insider

The truth is that people who follow the PL direction are very disdainful, looking down on Hijackers. It is understandable that when they have to spend a lot of time, money and brainpower to build brands, the Hijackers leisurely benefit. In their eyes, no matter how talented, intelligent, smart, thinking and skilled Hijackers are, they are still just “followers”.

Many founders, CEOs of successful brands in the world condemn this form, although not publicly :D. At their websites/blogs/courses or right on Amazon’s own forums there are always small sections like “how to prevent Hijack” or “report Hijack”,…

3.2 Legality of Hijack

Amazon does not ban and certainly will not ban Hijack

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This is good news for those who want to go this route! Because obviously when doing business in the international market, it is taken for granted that everyone has to accept competition. Unless you are a very large brand that has registered for protected brands on Amazon, you can think of preventing Hijack with your brand. If not, learn to accept it and think how to adapt to it.

Hijackers can completely contact the product supplier and request permission to sell that product. And you know, when they are given the full papers, you can’t stop them, you can’t ban them.

Ok! Let’s take an example for easy understanding. Dozaa opened a clothing store and took the brand name as Dozaa Fashion, in which Dozaa imported goods from supplier A for example and doing very well. Then one fine day, the neighbor saw this, so he opened a fashion store right next to it, and took it as HoiKhoiNghiepFashion. He also imports goods from supplier A, attaches the label and trademark of HoiKhoiNghiepFashion and trades competitively with you.

Obviously there’s nothing you can do about him, other than do your job well, unless you’re the sole seller of supplier A. But that’s very rarely the case, for any supplier. Everyone wants to develop more distribution channels for their products.

3.3 Potential of Hijack

When Amazon’s rules of the game did not ban… then surely Hijack will still exist and develop. And of course, its potential is still very large, proportional to the growth of Amazon.

People who are just starting out or are familiar with selling on Amazon often go in this direction. Because you don’t have to invest too much money and knowledge to do product launching campaigns with a long time… even the results you get may not be as expected. That is the reason why many sellers still follow this form. Whether it is successful or not… is in the ability of each person.

End!

Although Hijack is not a good form of business (only in Dozaa’s opinion)… but it is not bad either. Because Hijack itself will create a competitive environment, minimizing the monopoly factor. Surely there will be no regulations or laws that will take away this competitive environment. Especially when you do business in an international environment… where you exist and develop by your own thinking, vision and ability.

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Remember, in business, there is no set formula or standard. You must know how to flexibly use the sales forms on Amazon that are suitable for you. Get short-term farming long-term, get easy to raise difficult.