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Seller Of Amazon E-commerce Platform: From Extensive Model To Mature Growth Model
Kinghood International Logistics Inc | Updated: Nov 09, 2018

Amazon is now the largest and most active e-commerce platform in the world. Compared with the earlier established eBay, and the emerging star from China, aliexpress, etc., amazon platform continues to make substantial profits and remains the first choice of most cross-border e-commerce sellers.Meanwhile, in the minds of many sellers, amazon platform enjoys more extensive buyer traffic, more transparent platform management rules, stricter compliance requirements and other excellent reputation.

In recent days, there seem to be some voices saying that the competitiveness of sellers on amazon platform has been weakened. The people holding this opinion are mainly based on the continuous growth of sellers on amazon platform and the reasons for the frequent changes and tightened policies of the platform recently.

From 2012, amazon began to launch its global store business in China.According to statistics, amazon global market now has over 5 million sellers, and as of September 30, 2017, a total of 1,001,210 new sellers have joined all 12 amazon markets.That equates to 2,997 new sellers per day, or 124 per hour, or even 2 per minute.By some estimates, one-third of the 1,001,210 new sellers are from China.

Entering August 2018, amazon's total number of sellers has reached at least 6 million, with 140,000 sellers achieving sales of $100,000 and 20,000 sellers achieving sales of $1,000,000.The figures appear to show a growing number of sellers, with the majority of sales concentrated in a small number of sellers, and competition on amazon's platform appears intense.

On the other hand, amazon platform's management of sellers and buyers has frequently introduced new and stricter policy rules since Chinese lunar New Year 2018, such as:

Cancel sales authority by "abusing sales level" and "abusing search and browsing".

To review the buyer, participate in the question and answer, thumb up and other authority rules are adjusted, and block the number of buyers suspected of being involved in the manipulation of the comment.And so on.

According to the feedback from the sellers, the good part of the regulation launched by amazon is that it effectively cracks down on the sellers who use some black technologies to operate in non-compliance, but it also causes the sales performance of the sellers who operate in compliance to be affected and the operation cost to climb.For example, due to the new review policy, the product score has decreased, sales have been affected, and the cost of new product promotion and advertising has increased.

For these reasons, it seems that some people in the seller community have changed their optimistic attitude towards the current situation of amazon platform.But is it really true?

Clearly not.The cross-border export e-commerce industry has crossed the "extensive" development stage, during which Chinese enterprises have generally improved their awareness of products, quality, brand, market access and compliance.At present, it has entered the stage of "mature growth" : global market demand for cross-border e-commerce is still growing (external demand), cross-border export industry environment is starting to take shape (internal supply state of the industry), and national policies are favorable (industrial background).

In the stage of "mature and growing", cross-border e-commerce sellers begin to step into a more rational and deeper competitive environment. Take amazon platform as an example:

1. Sellers are more rational and no longer blind or gambling entry or investment in the extensive development stage.

2. The supply mechanism of products is more mature. More attention should be paid to product line development, product upgrading and brand growth.

3. The platform rules are more mature, and the management policies and rules for sellers and buyers are more perfect.

4. Improved market access and regulatory mechanism, such as requirements on product safety regulation, environmental protection compliance, and continuous improvement in logistics, customs clearance and taxation.

The problem, of course, is shown on the other side of the "mature growth" stage:

1. The polarization of competitive environment means that big sellers monopolize more resources while small and medium-sized sellers have increasingly limited resources to use.

2. The rising cost of competition, high speed hot style, fast money or low price and low quality products, the end of the boom era.

With the current cross-border e-commerce industry entering the "mature growth" stage, how to maintain the growth in good order.How to break through the current confusion and dilemma and help sellers to solve the problem pragmatically is the most important question at present.

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