Amazon'S China'S Last Trump Card?

This year, Amazon's strategy in China has always maintained a "I oriented" style. After formally ending the third party retail business facing Chinese consumers in July, Amazon China has been concentrating on cross-border trade. In December 11th, the Beijing Business Daily reporter interviewed Amazon China vice president and Amazon regional head of Asia Pacific regional leaders at the 2019 Amazon global store cross-border summit. She said that Amazon's advantage in China is mainly in the import and export field, and the strategic focus will still be on its own advantages in the future.

In December 11th, Dai Fei Fei released the China strategy of Amazon's global opening up in 2020 and promised to open Singapore websites to Chinese sellers. "In fact, Singapore's website has been open to individual Chinese sellers since October of this year, and has been tested and received good feedback from these Chinese sellers."

According to statistics, since Amazon launched the global business in 2012, 13 overseas sites including Amazon, USA, Canada, Germany, Britain, France, Italy, Spain, Japan, Mexico, Australia, India, the Middle East and Singapore have been fully opened to Chinese sellers.

According to data from Singapore International Business Development Bureau, in 2018, China was the largest export market in Singapore. In 2018, imports from the mainland of China amounted to 49 billion 660 million US dollars, an increase of 9.5%.

A Chinese cross-border e-commerce vendor who is engaged in clothing business told the Beijing daily news that "Singapore market is the market we want to enter. Singapore has a higher per capita income level, a higher level of interest and purchasing power for high-end goods, and a relatively strong acceptance of overseas brands."

"Singapore has a higher penetration of e-commerce, and online shopping is more mature, and the return on investment of sellers will be better. The advantage of Chinese sellers and made in China is that Amazon is one of the ways to improve product quality and customer experience locally, which is why we decided to take Chinese sellers to Singapore market. Dai Jingfei told the Beijing Commercial Daily reporter.

Prior to that, Amazon admitted that it had abandoned the third party seller of domestic retail in China, but did not include the third party seller who transacted cross-border trade. Revenue from third party seller business in Amazon's global business has been growing steadily in recent years: Earnings showed that in the past three quarters, growth in this area has been maintained at around 20%. In the three quarter of 2019, the net sales volume of Amazon's global sales from third party sellers was 13 billion 212 million US dollars, up 27% over the same period last year. In 2019, it was 11 billion 962 million dollars in the two quarter, an increase of 23% over the previous year, and 11 billion 141 million dollars in the first quarter of 2019.

Eric Broussard, the vice president of Amazon and the head of the third party international business, also stressed the importance of the third party seller service. He said: "in the past 20 years, the sales of Amazon's third party sellers have increased year by year and the annual compound growth rate has reached 52%."

"Amazon essentially represents such an opportunity that Chinese enterprises are not simply selling their products overseas, but are selling their latest products overseas to overseas consumers with their own brands." Anke innovation Polytron Technologies Inc founder and CEO Yang Meng said. Zhang Ya, vice president of overseas sales and marketing, went out to ask the Beijing business daily, a technology company, and told reporters that in selling all the cross-border export channels, Amazon's sales exceeded 50%.

According to a research report issued by consulting firm Accenture in April 2019, 20% of global electricity supplier sales will come from cross-border electricity supplier business in the future. At the same time, the global cross-border electricity supplier sales growth will reach two times the growth of local electricity providers.

It can be seen that Amazon China is investing in the B terminal market in the era of digital trade. After repeated setbacks in the Chinese market, there are still many competitors for Amazon's B2C overseas purchasing business in China, especially after NetEase koala's overseas purchase of Alibaba's income bag.

Meanwhile, Wang Jian, a professor of University of International Business and Economics and director of the international business center, told the Beijing Commercial Daily reporter: "Amazon's adaptability and competitiveness in China are relatively poor." Wang Jian also mentioned that Amazon's operation in China is subject to the US headquarters and cannot be changed according to the Chinese market.