Before I start writing, I have an announcement to make: today I am going to replace the avatar of Da Xiong that I have used for many years. In its place, I will use an avatar created from my own real photo, and I hope everyone won't get lost.
![[avatar.png]]
How to Face Disappointment#
If you had known me six years ago, I had achieved a bit of success and looked down on all the operations in the market, believing that only my theory was correct. I often told my boss, if you think he is good, then let him come.
During the pandemic, my grandfather unexpectedly fell and passed away, and I was isolated and unable to see him for the last time; Amazon also declined year after year, and I began to feel disillusioned and rebellious. But when I realized I couldn't change the outcome, I started reading, studying history, continuing education, cultivating interests, and even delving into faith to explore the meaning of life.
These experiences made me more tolerant, peaceful, and even indifferent to desires. Friends often teased me, asking if I had considered becoming a monk. To be honest, I did have that thought at one point, but later realized that my understanding was still insufficient, and I couldn't let go of my obsessions.
Ultimately, life is all an empty journey; rather than leaving quietly, it's better to make a loud stir. All the lows and highs are just small interludes on the path of cultivation, and there's no need to be overly concerned. As long as one is still alive, everything else is a minor issue.
Competing with the heavens is endlessly enjoyable; embrace the process.
Stuck in the Quagmire#
Since the end of last year, as Amazon's CPC has been rising, the Amazon division I am responsible for has been hovering on the edge of loss. Until this year, with factors like logistics costs, inventory allocation fees, and exchange rate declines, after launching a new product in May, profits finally couldn't hold up, and we have now been losing money for three consecutive months.
From the optimism of the first month to the confusion of the second month to the helplessness of the third month, in order to quickly turn things around, I started analyzing every operational link and advertisement on the front lines. Starting in July, I imposed strict metrics on operations, began to limit their restocking permissions and advertising budgets. It wasn't until August that we managed to stop the downward trend, but it will take some time to completely turn losses into profits.
From this experience, I learned a lesson: do not let employees roam free, nor expect anyone to think too much; we still need to continue improving SOPs to make everyone a brick, and let everyone follow the process.
This further reflects that under the benefits of the times, no matter how poorly you perform, it won't be too bad. With the company's resources, no matter how casual you are, you can still achieve decent results.
In addition, I have a few pieces of advice for everyone, which I have emphasized several times:
About Clearing Inventory: If the selling price is already at cost or you are already losing money, do not run ads; otherwise, you will incur more losses. Choosing to clear inventory in bulk may yield some returns.
About Launching New Products: Launching new products at a loss in the early stages is a paradox; if it doesn't make money upon launch, don't continue with it.
About Restocking: It's better to run out of stock than to overstock.
About Advertising: Do not advertise products where CPC exceeds 10% of the selling price.
About Selling Price: The cost given by the platform should be passed on to consumers.
Still, the right path is the one that suits you best; do not blindly follow trends.
Coping with the Future#
In the second half of the year, with peak season delivery fees, peak season storage fees, and continued declines in exchange rates, along with rising logistics costs, there are a lot of new expenses that we can't afford.
So last month, I hired new product developers and started to layout other categories, exiting the competition, clearing inventory, and then starting to raise prices.
No longer pursuing GMV, but only looking at net profit income.
Do not invest everything in entrepreneurship; for example, only use 50% of your cash for investment, then reinvest 70% of the profits and keep 30% for security.
My New Journey#
Next,
I will bid farewell to the training industry but will continue to provide free tutorials.
I will delve deeper into studying history.
I will continue to insist on building a small and beautiful "brand" company.
I will also contribute some love within my capabilities without relying on others.
I will work with a group of like-minded people to build G26, aiming to become a person with a net income of 5 million RMB per year.
At this moment, I am stronger than I was before.