In terms of supply, Amazon China team and Amazon global supplier management team work closely together, and Amazon’s professional international buyer team purchases directly from brands or overseas authorized dealers, and ships directly from overseas to China. All products are registered with customs and commodity inspection before being put on the shelves. From a global perspective, Amazon has established business sites in 13 countries in Asia, North America, Europe and Oceania. The world’s 96 major operation centers and logistics systems throughout the world have created an online “electronic Silk Road”. In terms of logistics, Amazon has 15 major operation centers in China, which can arrive on the same day or the next day in more than 1,400 cities and counties.
1. Direct mail
It is reported that Amazon China’s overseas purchases include three modes, one of which is direct mail import, that is, after consumers place an order on the website, the product is shipped directly from abroad and delivered to consumers through international logistics. Amazon’s overseas purchase direct mail service can be accelerated to 6-8 working days, and the industry average is about 30 days; it is reported that Amazon’s direct mail to China is rich in items, including 25 million items from the United States, 12 million items from Germany, 12 million items from Spain, 10 million items from the United Kingdom, and 8 million items from Italy. The categories include shoes, clothing, maternal and child care, health nutrition and personal care, etc. More national sites and product categories will be added in succession.
2. Direct procurement
In the import direct procurement model, Amazon directly purchases and imports the goods from the place of origin and the brand, and then prepares the goods in Amazon China’s operation center. After the customer places an order, it can be shipped directly from China; Amazon China also has its own distribution team and customer service center to provide consumers with convenient delivery and after-sales service. Amazon establishes different distribution centers according to different product categories, and different products are distributed by different distribution centers. This method improves the specialization and operating efficiency of the distribution center, makes it simple and standardized, and reduces the management and operation costs of the distribution center. It can reach the hands of buyers in an average of 3 days.
3. Flash Sales
The latest global purchase? Flash Sales project, specifically, Amazon China selects the best-selling items in overseas purchases, imports them in advance to bonded warehouses or Hong Kong warehouses, and directly ships them through domestic logistics. The flash sales model can screen the products on the one hand, and optimize the logistics process on the other. The first batch of products participating in Amazon China’s flash sales are nearly 70, and the categories are mainly concentrated in the two categories of personal nutrition products and infant formula milk powder originally shipped from overseas. Niu Yinghua, vice president of Amazon China, introduced that all the products of the flash sales are selected through big data, that is, the products that Chinese consumers are most interested in are selected. Secondly, the flash sales adopts a self-operated model, and Amazon endorses the products. In addition, this model realizes a localized shopping experience, including unified account login, adding localized payment methods, and domestic customer service staff solving after-sales service problems.
4. Utilize zero inventory operation
Amazon China has a world-class operating network recognized by the industry. There are currently 15 operation centers, which are mainly responsible for receiving goods from manufacturers, warehousing, inventory management, order delivery, transfer delivery, customer returns, return to the factory, product quality and safety, etc. At the same time, Amazon has very few inventory items and only rents a limited number of warehouses. By establishing a good cooperative relationship with suppliers, it has achieved effective control of inventory and kept inventory at a minimum level. Due to the low inventory, Amazon’s inventory turnover is very fast, which greatly reduces costs.
5. Adopt “Postal Injection”
“Postal Injection” means using its own trucks or independent carriers to deliver a truckload of ordered goods from Amazon’s warehouse to the warehouse of the local post office, and then the post office delivers the goods to the customer. This method provides convenience for the post office to send goods and reduces delivery costs. According to an estimate by a delivery company that cooperates with Amazon, the funds saved by this “postal injection” method are equivalent to 5% to 17% of the normal price of first-class mail, and the benefits are significantly increased.
6. Complete Shipping Terms
Amazon’s shipping terms are quite complete. On its website, customers can get a lot of necessary information, such as the shipping of auction items, delivery time estimates, free super-saving shipping, in-store picking, items that require special loading and unloading and handling, packaging recycling, special shipping requirements, shipping fees, shipping restrictions, order tracking, etc. Amazon also provides customers with a variety of optional delivery methods and delivery deadlines based on the delivery method, delivery deadline, and product category, and adopts different charging standards, including batch fees charged at a fixed rate, piece fees charged by the number of pieces, and fees charged by weight.