Many people know about Amazon’s cross-border e-commerce platform, but what exactly does the Amazon platform do? What are the advantages of Amazon platform compared to other e-commerce platforms? Next, follow the editor to take a look!
Amazon.com (NASDAQ: AMZN) is the largest online e-commerce company in the United States, located in Seattle, Washington. Amazon is one of the earliest companies to engage in e-commerce on the Internet. Founded in 1995, it initially only operated online book sales, but has now expanded to a wide range of other products. It has become the online retailer with the most product varieties in the world and the world's second largest Internet company. The company also has subsidiaries such as AlexaInternet, a9, lab126, and the Internet Movie Database (IMDB). Amazon and other sellers offer customers millions of unique new, refurbished and used items, including books, movies, music and games, digital downloads, electronics and computers, home and garden supplies, toys, baby products, food, apparel, shoes and jewelry, health and personal care products, sports and outdoor products, toys, automobiles and industrial products, and more.
Simply put, Amazon's no-source strategy is to collect domestic products, mark them up and sell them abroad, then move them to Amazon's European platform for sale. Because manufacturing costs in developing countries are relatively low, and there are also exchange rate issues, they are sold to developed countries with high consumption. The price increase usually starts from 5 times, and can even reach 10 or 20 times. The profit is very considerable, which is not achievable on domestic platforms. Take a water cup in China for example. It may only cost 20 yuan in China, but if you sell it on Amazon, it may be 20 euros or 20 dollars. Using the exchange rate, 1 euro is equal to 7.4 yuan. I believe I don't need to calculate this in detail. Excluding costs and postage, you can earn 100 to 300 yuan for one order. This is cross-border e-commerce, and some of our country's products are popular abroad. Its competitiveness is smaller than other platforms, and its profits are higher than domestic shopping platforms. The main groups are foreign students in China and Chinese abroad.
What are the advantages of the Amazon platform?
1. Amazon is the online retailer with the largest variety of products in the world, with high popularity and reputation abroad. Amazon is aimed at developed countries, with a large flow of buyers and a larger market space.
2. Amazon is a platform with fair rules, high-level sellers and little vicious competition; Chinese sellers can take advantage of exchange rate differences to earn more profits.
3. Foreign online shoppers on the Amazon platform are relatively less price sensitive, and their products have the highest profit margins. Amazon has more than 400 million users and more than 3 million sellers worldwide. Moreover, the purchasing habits of foreigners are the opposite of the rules and traffic of domestic e-commerce platforms. It is conceivable that there are still many blank markets on the platform waiting to be filled. The bonus period has just begun.
