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But Apple has always favored high margins on premium products, even the cables and earbuds it sells in the Apple Store. This has given ample room to companies like Anker, with the low overhead of an e-commerce business, to sell similar products of near-identical quality for $10 to $20 cheaper.
The company is quick to fill gaps created by smartphone manufacturers. When Apple removed the headphone jack on the iPhone 7, for instance, Anker saw a giant opportunity to begin producing new dongles and other cable adapters to help consumers adjust. But mastering Amazon was the real key to securing Anker’s future.
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Search for a generic accessory like “cellphone wall charger†or “Lightning cable†and you’ll find the Anker brand high up in the search results, typically with a 4.5 or 5-star rating. In fact, Anker products take up the first five slots on Amazon’s list of best-selling portable batteries. And alongside the ratings, you’ll find thousands of customer reviews — reviews that the company scans meticulously for ideas on how to improve their development process.
It essentially took care of aspects of the business like inventory, logistics and fulfillment, and sales tracking. “It took me two months, evenings and weekends, to develop this system,†Yang explained in a video produced by Amazon last year to promote entrepreneurship on its platform. “Within a month, she was fulfilling 300 orders a day.†Building this system gave Yang invaluable insight into how third-party selling on Amazon functioned.
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Anker thrived by borrowing infrastructure from Amazon and relying on engineering and support in China. “Amazon provides loads of services — financial services, fulfillment. It actually makes selling a low-barrier thing,†Yang says. Although the company attempted to handle its own fulfillment in its early days, it eventually discovered it could not compete with what Amazon offered.
“The biggest challenge for Anker is not sales. It’s customer perception,†Yang says. “People think they need [Apple’s] cube charger and stock cable.†Teaching people that there is a superior product out there, and then convincing them to keep buying, is Anker’s core challenge. “Amazon reviews were really enormously helpful,†Yang says.
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Facebook, back in 2012, celebrated its billion-user milestone with an ad comparing the social network to chairs, bridges, and even nations. Anker has never aspired to such grand ambitions. “At Anker, we can't exactly help you unwind,†the company admits on its Amazon sellers page. Instead, Anker takes a more straightforward approach by solving the inevitable problems technology creates.
“Say hello to an easier, smarter life.†Yang is trying to extend this simple philosophy to categories like headphones, speakers, phone cases, and now smart home appliances under a new brand called Eufy. Launched last September, Eufy is Anker’s avenue for selling things like Roomba clones, desk lamps, and bathroom scales.
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“I think we all agree that the portable charger isn’t forever,†Yang says. But consumers will always need wall plugs and cables, and Anker sees its goal now as keeping pace with changing standards, like the introduction of USB-C. In the meantime, Yang says it’s diversifying with a future expansion into audio, smart home, and automotive product lines.
Key to the success of those products is moving to brick-and-mortar retailers. Terrence Wang, the company’s chief marketing officer hired from Procter & Gamble in 2015, says having a presence in Best Buy and Walmart, a process that began last year, is the next stage of Anker’s evolution. “Expanding from online to offline is critical actually,†Wang says.
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That’s the original brand vision.†The company’s focus on storefront retail is a response to a second very real threat — dependence on a direct-to-consumer, online-only model. The company has found it difficult these days to launch new products on Amazon. Older products have thousands of reviews, while newer ones need to earn placement in the search rankings and collect testimonials before more cautious buyers pull the trigger.
“To a lot of people, the original charger and the original cable are the only means to charge their devices.†The company is also struggling with its complex product line, with a dizzying number of choices that may alienate consumers who are looking for a simple choice. “We’re converging to this generation approach,†Yang says.
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The company’s success hinges on convincing — or “educating†— their consumers about the value of what they’re offering. Yang likes to tell a story about a moment he sees play out on repeat every single time he’s at an airport, anywhere on the planet. He sees people, smartphones in hand, rushing from outlet to outlet, looking for space with “the little Apple cube in their hands†and running out of options. click here