Amazon is the world's largest cross-border e-commerce platform. There are few sellers and many buyers on the platform, with little competition. There is huge profit margin for domestic sellers selling products on the Amazon platform. For sellers engaged in cross-border e-commerce sales, if they want to sell products in the most developed countries and regions in the world and seize market share, then the Amazon platform will be their only choice for cross-border sales. Amazon's platform has a relatively large consumer base and a relatively high average order value, which are impossible for other e-commerce platforms to achieve.
What are Amazon's advantages?
Advantage 1: Amazon has the largest platform size
The market covered by the Amazon platform is the most core market needed by cross-border sellers. For example, in the United States, Canada, Mexico, Japan, the United Kingdom, Germany, Spain, Italy, etc., in these developed countries and regions, in the mainstream markets with higher consumption levels, Amazon is the largest online shopping platform. It can be said that when shopping in these places, netizens will first choose the Amazon platform.
Advantage 2: Amazon has the best customers
For more than 20 years since the establishment of the Amazon platform, it has always been closely centered around the "user-centric" service concept and has put this business philosophy into practice. When users shop on the Amazon platform, they can enjoy Amazon's high-quality services, and many users have developed trust and dependence on Amazon. Amazon has about 100 million members worldwide. To become an Amazon member, you need to pay an annual fee of US$99. Most members are the core middle class in each country and region, and they have both consumption needs and consumption capabilities. Platform members shop online more frequently, are less sensitive to product prices, and pay more attention to product quality.
Advantage 3: Amazon platform rules and regulations
The Amazon platform is relatively standardized, which is a view that is generally recognized by almost all sellers engaged in Amazon sales. The Amazon platform treats all sellers equally with equal, fair and standardized management, regardless of whether they are new or old sellers. As long as the sellers operate their businesses diligently and select popular and high-quality products, they will be able to obtain a steady stream of orders and profits on the Amazon platform. The platform’s rules and regulations reassure consumers and sellers. All sellers need to operate their stores in accordance with platform rules and compete under fair and transparent regulations. This approach is highly recognized by sellers.
Advantage 4: Amazon platform has the highest profit
It has long been an indisputable fact that competition among domestic e-commerce platforms is fierce, and this will only become more intense. Overly fierce competition has caused its operating costs to gradually increase, and the profit margins for merchants have been thinned, with profits becoming increasingly lower than in previous years. In such an environment, the Amazon platform still has a relatively high profit margin, making it a platform that cross-border e-commerce sellers pay more attention to. Consumers are less sensitive to product prices. Most consumers care more about the quality of the product itself. If the product quality is good and the buyers have high reviews, then the store and the products will be more likely to be recommended by the platform and allocate more traffic.
For sellers on the Amazon platform, as long as the product quality is good, the sellers can easily achieve a profit of more than 50%. If the products sold by the merchant are relatively unique, the profit can even reach more than 100%. Whether from the perspective of market size, platform regulations, or development space and profit margin for sellers, the Amazon platform is a platform that deserves priority consideration for cross-border e-commerce.
