Like eBay, Amazon was also born in 1995 when the world’s first wave of Internet boom emerged. The difference is that Amazon originated from an online bookstore. Its operating model was a self-operated model of heavy assets, self-purchase and self-sales, which was not favored at the time. In conjunction with self-operation, Amazon also created the world’s largest and most advanced warehousing and logistics system FBA (Fulflment By Amazon, which is shipped by Amazon).
After more than 20 years of precipitation, the e-commerce ecological chain built by Amazon with self-operation and FBA logistics system as the core has become its invincible “moat” and a model for many e-commerce platforms to learn from.
With the growth of its own size, Amazon has developed from an “online bookstore (Bookstore)” to an “Everything Store (Everything Store)”. At the same time, Amazon opened its platform to third-party sellers, and more and more sellers settled in, and Amazon’s e-commerce ecological chain has become better.
On the current Amazon platform, the coexistence of self-operated and third-party sellers provides consumers with a richer selection of goods. Due to the rich products, reliable quality, fast delivery time, and good customer service, consumers have a high stickiness to Amazon. At present, Amazon’s premium membership users (Prime Member) have exceeded 100 million, and these are all loyal consumers.
Amazon has now become the leader among e-commerce platforms in the world, and third-party sellers on the Amazon platform have been exposed to more and more consumer groups with the help of the open and growing “east wind” of the Amazon platform. Sales have increased and profits have been considerable. There are many Chinese sellers among the excellent sellers. For example, Anker (a brand under Anker Innovations) has become a leading brand in the portable charger industry in the North American market, adding a touch of color to Chinese brands going abroad.
At present, Amazon has become the number one online shopping platform in many countries and regions such as North America, Europe, and Asia, and its traffic cannot be underestimated.
As the largest e-commerce platform in North America, Amazon’s sales have maintained a growth rate of more than 20% for many years.
Its rapid growth also allows sellers to have a more ambitious development vision and goals. Since its establishment, Amazon has always adhered to the corporate philosophy of becoming “The World’s Most Customer-Centric Company” and has always adhered to the basic principle of satisfying consumers in its decision-making process. It has won the recognition and praise of consumers. Highly satisfied consumers have brought rich returns to Amazon. Indicators such as the renewal rate of premium members, the super high repeat purchase rate and the total annual consumption of consumers are all important factors in promoting the rapid development of the platform.
The huge market size, high annual growth rate, high-quality customer base, fast and efficient FBA delivery system, and perfect after-sales service system have become the main reasons for sellers to enter the Amazon platform.