Amazon business model analysis: comprehensive analysis of products, target customers and logistics system

Amazon, as the largest online e-commerce platform in the United States, has achieved remarkable success worldwide with its innovative business model. This article will conduct a comprehensive analysis of Amazon’s core products and services, target customers, business processes and logistics systems to help readers deeply understand its business operations and market positioning.

1. Product and service scope

Amazon China provides consumers with a wide range of products, including 28 major categories of products including books, music, movies and television, mobile digital phones, home appliances, and home furnishings. Over time, Amazon China has continued to expand its overseas product categories, and now the selection of “overseas shopping” stores has grown to nearly 3 million. This service strives to connect with Amazon’s US direct mail service to provide consumers around the world with a convenient shopping experience. Recently, Amazon China also plans to add more categories such as men’s clothing, boutique women’s bags, and kitchenware to “overseas shopping”, thereby pushing the total number of products to more than 8 million.

In addition to product sales, Amazon also provides value-added services such as online store rental and advertising to enhance customers’ shopping experience and provide merchants with opportunities to increase exposure. The core principle of the platform is to be customer-centric and committed to providing convenient and fast services to gain competitive advantages in the market.

2. Target customer group

Amazon’s target users mainly include active users of online shopping in various countries, especially young people with low and middle incomes. This group usually has a high degree of education and good Internet usage skills, loves to try new things, and is price-sensitive. Therefore, online shopping has become their preferred method. Through the “Global Store” project, Amazon aims to help Chinese sellers access multiple mature markets including the United States, Canada, Germany and the United Kingdom, and provide support for sellers’ internationalization.

3. Business process and operation network

Amazon China has an industry-leading operation network with 15 operation centers in Beijing, Suzhou, Guangzhou and other places, with a total area of ​​more than 490,000 square meters. The operations center is mainly responsible for activities such as receiving goods, managing inventory, shipping, returns, and product quality assurance. In addition, Amazon has also established its own distribution team and customer service center to provide consumers with efficient after-sales services.

4. Logistics system and customer service

Amazon’s logistics system covers the entire country and can provide customers with flexible delivery options. Cash on delivery services are supported in more than 1,500 cities, with “same-day delivery” available in 17 cities and “next-day delivery” available in 53 cities. In terms of customer service, Amazon provides 24/7 uninterrupted customer service and uses a variety of communication methods (email, phone, online chat) to answer customer questions, which adds protection to consumers’ shopping experience.

Through the above analysis, it can be seen that Amazon’s business model has formed a complete and complementary operating system through diversified product services, clear target user positioning, and efficient business processes and logistics systems. This not only laid the foundation for its long-term survival and development in the online e-commerce industry, but also allowed more merchants to see opportunities to make profits on the platform.