Many Amazon sellers want to know what kind of e-commerce model Amazon China has. Today we will take a look at what Amazon China’s e-commerce model is like.
The business model shows how a company survives, how it makes money, how cash comes in, and where the hidden risks lie.
Since the beginning of the year, Amazon has been in the news vortex after its market value exceeded one trillion US dollars, and there are actually many misunderstandings from the outside world. If you really understand Amazon's business model, you will not doubt its greatness.
What is the e-commerce model of Amazon China?
As we all know, China's basic conditions for developing e-commerce sales business are better than those of the United States.
Because most places in the United States are sparsely populated, while China is full of people and many places are crowded with people. The more people gather, the more it stimulates business prosperity.
China has the largest number of "high-density central cities" in the world, which is particularly beneficial to the development of companies such as Alibaba, Meituan, and JD.com.
Statistics show that there are four cities in the United States with a population of over 2 million, namely Los Angeles, New York, Chicago and Houston. In China, there are more than 40 cities with a central urban population of more than 2 million. The population base is large enough, and people generally gather in central cities and urban centers. This makes cross-regional online shopping and local services possible in China - whether it is food delivery or express delivery, including many products in the sharing economy, such as shared bicycles. Expanding the Chinese consumer market is almost a natural process, because the cost can be spread out (by the huge and concentrated consumer population).
However, Amazon has easily captured the largest share of the e-commerce market in the United States, Europe and even India, but has "retreated in China". A big reason for this is that local Chinese competitors are too strong and foreign companies find it difficult to grasp the consumption habits of Chinese users.
However, it seems that none of this matters now, as Amazon is no longer just an e-commerce website.
A good business model is often unique in the world and cannot be imitated by competitors. If I could add one more point, I think the core "spirit" of the greatest business model in the world is just two words - altruism.
You are as valuable as you create for others. Altruism: The core "spirit" of a great business model
In 2018, Amazon's operating revenue reached US$232 billion, four times that of Alibaba ($53 billion), but the net profits of the two companies were not much different, at US$10.1 billion and US$9.2 billion respectively. FBA (basic services) and AWS (cloud computing) contribute the vast majority of Amazon's profits, which have little to do with e-commerce sales; Alibaba's profit sources are mainly the sales commission of the e-commerce platform (sales sharing with merchants) and traffic import (similar to advertising charges).
Even though they are both e-commerce websites, Amazon and Alibaba have completely different business models.
The above is the relevant content of Amazon China's business model. If you want to get more information about Amazon China, please continue to pay attention!
