Nowadays, sellers need to pay attention to more and more aspects when doing Amazon, such as understanding the platform rules, how to operate the store, etc. These are all things that everyone needs to understand clearly. The following is an analysis of Amazon’s business model, operation model and logistics model.
1. Amazon’s operation model
The Amazon platform is B2C, that is, the way of business to customers. Amazon cooperates with suppliers to sell its own products, that is, the self-operated method; third-party sellers can also enter to sell goods.
Through online sales, more products are presented, and a trading platform is provided for buyers and sellers, making the transactions between the two parties safer.
Because Amazon’s products are sold directly to consumers, the middleman can be omitted, and the price of the product is lower, so it is more attractive to buyers. It is more competitive than other platforms.
2. Business model
The business model is Amazon products mainly based on self-operated products and third-party products.
If you have your own products, Amazon will be responsible for a series of operations, from stocking, packaging to delivery, which is safer. Moreover, the threshold for suppliers to cooperate with Amazon is relatively high. Once the requirements are not met, the cooperation will be terminated, so the products will be more secure; although the product guarantee of third-party sellers is relatively low, they can enrich the product types of the platform after entering, so that customers have more choices and attract more customers to shop on Amazon, which also plays a very important role. No matter which business model, it can bring more traffic and conversion to the Amazon platform.
3. Logistics model
Amazon logistics includes two modes: FBA and self-delivery.
Amazon is responsible for packaging, shipping and delivery of self-operated products. The transportation timeliness of the product is more guaranteed, and the after-sales service is more convenient. They will also arrange door-to-door collection and return to the Amazon warehouse.
Third-party sellers can choose to open FBA or ship by themselves. Amazon is responsible for the delivery of FBA, and merchants do not have to worry about their own logistics problems; if they ship by themselves, they will be more flexible and can control costs by themselves.
The above is an analysis and introduction of Amazon’s three models. Merchants mainly choose the method that suits them according to their own situation, such as cost and control, which are all related to whether your store can have greater advantages. Therefore, only by understanding the advantages of each method and choosing the most suitable method according to your own situation can you realize the operation of Amazon.