Analysis of market dynamics between Amazon and Philippine e-commerce platforms

In recent years, the activity of the Amazon store trading market has increased significantly, especially driven by many brand accelerator companies, which has intensified market competition. Currently, there are more than 60 brand accelerator companies engaged in Amazon store acquisitions, and nearly 10 of them have set up offices or recruited agents in China. A list of 1,000 target stores is circulating in this market. Along with the rising sales potential, many sellers began to receive inquiries from buyers or agents, and some sellers even complained about “cheap selling” due to misjudgment of the market.

Analysis of the reasons behind market prosperity

1. Increased operating risks
   Since May this year, stores have been frequently blocked on the Amazon platform. More than 50,000 Chinese sellers have been affected, and losses have exceeded 100 billion yuan. This has directly caused many sellers to lose confidence in continuing to operate and choose to cash out. field. For stores at risk, the trading market naturally becomes more active.

2. Logistics costs soar
   The rise in logistics costs has further increased the operational pressure on sellers. For example, ocean freight rates have increased significantly recently, and the tight space caused by restricted voyages has also made it difficult to book space. In addition, due to the impact of the epidemic, shipping delays have posed challenges to sellers’ stock preparation and operational capabilities. In such an environment, some sellers may choose to reduce inventory and reduce risks.

3. The rise of intermediaries
   In view of the increase in market demand, intermediaries emerged as the times require, promoting the further prosperity of Amazon store transactions. These intermediaries facilitate the connection between buyers and sellers and help more sellers exit the market smoothly.

A prominent platform in the Philippine e-commerce market

At the same time, Shopee and Lazada still dominate the Philippine e-commerce market. Shopee quickly won the favor of Filipino consumers with its localized APP and operation team, while Lazada relied on Alibaba’s brand and security to develop steadily and attract a large number of loyal users.

• Shopee
  Shopee has become the preferred e-commerce platform in the Philippines, especially suitable for Chinese sellers to conduct cross-border e-commerce business. Its unique feature is that it does not charge commissions and provides local self-operated logistics solutions, thereby reducing merchants’ operating costs.

• Lazada
  Lazada is also a popular choice, providing Chinese sellers with good traffic and brand reputation protection, although its market competitiveness is gradually weakening.

In addition, Zalora has successfully attracted loyal customers with its marketing strategies that are in line with local fashion styles, further enriching the choices in the Philippine e-commerce market.

Conclusion

Overall, the vigorous development of the Amazon store trading market is due to the interweaving of multiple factors, coupled with the rise of e-commerce platforms in the Philippines, making the competitive situation in the e-commerce market more complex. Sellers need to make wise decisions based on their own actual situation when choosing platforms and strategies to respond to market changes.