Amazon (AZ) has taken IT, logistics and retail to the extreme. The business model of “Amazon-style customer experience” is customer-centric, that is, it focuses on the three user experiences of low prices, rich products and convenient purchases. Amazon’s platform governance has always been strict, and it has cracked down on dishonest operations such as tax fraud, infringement, fake orders and follow-up sales. Its expanding logistics network is accelerating the reshaping of business and communities, posing a subversive challenge to the retail industry. The annual fee of Amazon Prime members, which is praised by many people, cannot actually cover all logistics costs, but the stickiness of the service allows many costs to be spread out when the sales scale increases. In Amazon’s financial report, logistics costs are a super black hole. The cost growth rate has always been faster than logistics revenue, but the logistics cost of each order has been declining. There are as many as 400 million products on the Amazon platform. The publicly disclosed domestic e-commerce fulfillment cost is 10%~15%. The GMV of third-party sellers has exceeded that of self-operated products. The inventory units sent by sellers to Amazon’s logistics service account for more than 90%.
In the field of cross-border e-commerce, Amazon supports overseas purchases with a seamless cross-border import logistics system. With strong resource integration and full traceability, it can quickly realize intelligent delivery, efficient customs clearance and distribution of cross-border orders; it supports global store openings, with Amazon logistics services cross-border cloud warehouses, transportation networks and system capabilities throughout the market, as well as 14 major international sites and 125 operation centers, providing high-quality fulfillment services for sellers from all over the world. The huge business volume gives Amazon strong bargaining power and its unlimited desire for low costs. Amazon delivers 600 to 700 million packages each year. It strengthens sea and land shipping logistics in its self-built express logistics network, which not only makes up for its own shortcomings, but also maximizes the integration of resources. Amazon’s global logistics strength has made other e-commerce platforms look up to it, and the end-to-end comprehensive logistics service system is beginning to take shape.