There are three Amazon business models today. What are the three Amazon business models?
The first is a model that focuses on vertical category distribution
The second model is to focus on vertical category products
The third model is based on multiple categories.
Then I will introduce the advantages and disadvantages of these three Amazon business models in detail below.
1. Vertical category distribution model
Disadvantages: Many sellers have never thought about what kind of products they want to make since they first joined the platform. Even if they enter a product field, they just follow the trend. For example, in the field of clothing, many sellers may think that clothing is a big business, and then they try their best to upload goods from the beginning, regardless of whether they are good or bad, and keep uploading 1688 items to the platform. After working for a while, they find that they are exhausted, and then many products are taken off the shelves one after another. After all, clothing follows the trend and changes with the seasons.
So the distribution model has existed for a year or two. Now we need to transform as soon as possible, otherwise you will be eliminated by the times. You can upload goods, but you can spend more time researching the products and getting more refined.
Advantages: "Catching everything" is a matter of probability. This is how goods are distributed. If you put so many things on the market, there will definitely be orders. If they are at the same level, A+B will definitely be greater than C, just like planting willows by accident and getting a forest of willows.
2. Vertical Category Boutique Model
Disadvantages: If you choose the boutique model, you have to give up the idea of the distribution model and need more time to study a product and product data analysis, such as the product's life cycle, expected weekly sales, etc. Of course, there are bound to be such situations where you "stumble". For example, you develop a product and think it is pretty good, so you purchase a lot and send it to the Amazon warehouse. In one case, it sells very well, while in another case, it sells terribly and attracts a lot of negative reviews. After all, what you think is good may not be what others think. Or, your boutique model may be completely defeated by big sellers. Therefore, the boutique model bears much greater pressure than the distribution model, and more considerations need to be given to aspects such as inventory, product life cycle, product quality, etc.
Advantages: For example, if you spend one hour researching a product, it is better than me constantly updating it. The boutique model is more about refinement, so that more aspects can be made more refined, such as: the extended development of a single product.
The boutique model makes it easier to monitor product data, whether it is sales data, evaluation data, etc., and it is also easier to optimize products and services. As we all know, Amazon is a platform that promotes boutique products.
3. Multi-category model
Advantages: Economics and politics in high school taught us that "eggs should be placed in different baskets." The multi-category model is based on this principle. It helps to avoid risks. If something doesn't work out in one place, it will definitely work out in another place. Maybe it will work out in both places. Wouldn't that be better? The multi-category model breaks away from limitations and provides more choices, which will also bring more benefits. Moreover, having multiple categories at the beginning may help you know which category is more suitable for you. The A/B testing method is also a good way to test.
Disadvantages: The multi-category model tells us that it requires more time, energy, and cost.
However: a multi-category boutique model may be a good choice.
In short, there are people who use various business models of Amazon, and there are people who make money from these business models. The above is the relevant content about Amazon's business model. If you want to get more knowledge about Amazon's business model, please continue to pay attention!
