Amazon B2C e-commerce platform: detailed explanation of global layout and advertising strategy
Since Amazon was founded by Jeff Bezos in 1995, it has rapidly developed into the world’s leading e-commerce giant. Initially only engaged in online book sales, its business now covers a variety of commodities, including but not limited to books, electronic products, home appliances, toys, cosmetics and other fields. According to statistics, Amazon ranked fourth in the global brand value rankings in 2020, and in the same year ranked second among the top 50 companies selected by Fortune magazine in the United States. Amazon has a huge user base. Nearly half of its more than 500 million active users are Prime members. The average annual consumption of this group on the platform is as high as US$1,400.
Global site distribution
Amazon currently operates multiple sites around the world, providing Chinese sellers with a wide range of market opportunities. Specifically, it includes North American and Latin American stations (United States, Canada, Mexico), European stations (UK, France, Germany, etc.), Japanese stations, Australian stations, Indian stations, Middle East stations (Saudi Arabia, United Arab Emirates) and Singapore stations. As of the latest news, Amazon has opened a total of 17 overseas sites to Chinese sellers.
Prime membership system
Prime membership requires annual or monthly payment. In the United States, for example, the annual fee is US$139 and the monthly fee is US$14.99. Prime members enjoy priority delivery services and exclusive offers, which greatly enhances user stickiness and shopping experience, and has become one of the important factors in attracting new customers.
On-site advertising system
As Amazon cracks down on illegal activities such as fraudulent orders, on-site advertising has gradually become the main way for sellers to increase product exposure. The following are five mainstream in-site advertising models provided by Amazon:
- Share of Voice (SOV): Enhance brand influence through fixed purchase exposure.
- Sponsored Ads: Covers various forms such as product promotion, brand promotion, brand video promotion and display promotion.
- OTT TV advertising: Targeted at viewers who watch TV programs online.
- Twitch Ads: Use the game live streaming platform for brand interaction.
- Audio Ads: Designed for listeners who cannot see a screen.
Amazon on-site advertising can not only effectively increase sellers’ product visibility, but also help them better tell brand stories and accurately locate target consumers.
To sum up, whether from the perspective of global layout or advertising strategy, Amazon provides cross-border e-commerce with broad development space and rich marketing tools. For Chinese companies hoping to expand into international markets, Amazon is undoubtedly a platform worth exploring in depth.