China-based Amazon-based brand giant Anker has big plans for ad technology services – AdExchanger
Ai also knows the challenge of straddling the Chinese and US markets. He was previously Senior Brand Manager at Procter & Gamble in China and Senior Brand Manager for Chinese tech giant Tencent in America. Based in Seattle, he is now tasked with building a business selling e-commerce services and advertising technology designed by Oceanwing in China to US vendors.
Oceanwing has a few advantages. For one thing, despite being a Chinese company listed on the Shenzhen Stock Exchange, Anker is a perennial bestseller on Amazon in the United States. And because Oceanwing is backed by Anker, it can connect to a huge pre-existing supply chain for warehousing and fulfillment.
Oceanwing operates in a crowded realm of Amazon-based ad technology services, but hardly any of those companies have warehousing and fulfillment capabilities as well, Ai said.
Amazon of course has its own ad technology and order fulfillment operations. But as an Amazon seller with their own supply chain service, Oceanwing also has its advantages.
Amazon is wringing out its warehousing providers for every ounce of efficiency. Bulky or heavy items, for example, and perishable goods (God forbid you sell frozen goods) or anything that takes days or weeks to sell are downgraded by Amazon. If an item is found, taking up space, or not delivering well, Amazon lowers the product’s Inventory Performance Index score, a metric that Amazon’s advertising platform uses to decide whether to (or not) list certain items at the top of search results.
For Oceanwing, the roadblocks on Amason are an opportunity to offer these same services.
Consumer electronics like vacuum cleaners and speaker systems, pet care products and health products are some of Oceanwing’s primary verticals, Ai said. These are all types of products that struggle with Amazon’s execution metrics.
“Being in the first step, our main focus is to prove that the model we are practicing really works for general customers in the United States,” he said.
And Anker also benefits from its subsidiary Oceanwing. Besides the agency’s potential revenue and ad technology, Anker has invested and bought Amazon-based brands in other categories since its IPO last year.
Several global vendors who worked with Oceanwing were subsequently invested or acquired by Anker.