A detailed analysis of the advantages and disadvantages of Amazon’s cross-border e-commerce and various models

As one of the world’s largest e-commerce platforms, Amazon occupies a pivotal position in the field of cross-border e-commerce. This article will conduct a comprehensive analysis based on the advantages and disadvantages of Amazon’s cross-border e-commerce platform, evaluation form, delivery method, follow-up policy, agent operation model, and logistics model.

Analysis of pros and cons of Amazon’s cross-border e-commerce platform

Formality and reliability

The Amazon cross-border e-commerce platform is formal and reliable, especially suitable for merchants who want to expand overseas markets.

Advantages

• Large-scale consumer group: Amazon has a huge user base and can provide merchants with a broad market space.
• Powerful B2B services: Provide a variety of professional services such as quantity discounts, business quotations, procurement software integration, etc.
• Simplified order fulfillment process: Through the Fulfillment by Amazon (FBA) service, Amazon assists with all aspects of the process from warehousing to delivery.

Disadvantages

• Profit split: Transaction fees and FBA fees need to be paid.
• Difficulty building a personal brand: Limited direct communication with buyers, detrimental to long-term brand building.
• Complex data management: The uploading and organization of product information must follow strict specifications.

Analysis of Amazon evaluation format

Amazon Vine Program

Advantages

• High security, official endorsement.

Disadvantages

• The conditions for participation are harsh and the cost is high.

Real person evaluation

Advantages

• Can significantly improve conversion rates.

Disadvantages

• The quality of market channels varies, making selection difficult.

Self-support account evaluation

Advantages

• Low cost and strong control.

Disadvantages

• The operating threshold is high and compliance issues need to be paid attention to.

Comparison of logistics and distribution methods

FBA (Fulfillment by Amazon)

Advantages

• Fast delivery to increase the probability of Buy Box.
• Customer service is provided by Amazon.

Disadvantages

• Additional charges apply, including storage, shipping, etc.

SFP (Seller Fulfilled Prime)

Advantages

• Reach out to Prime users and increase sales.
• Manage inventory, packaging and shipping independently.

Disadvantages

• Return processing needs to be handled by yourself.
• Fulfilling the two-day delivery promise is a big challenge.

FBM (Fulfillment by Merchant)

Advantages

• Flexible cost control facilitates multi-channel sales.

Disadvantages

• Competing for the Buy Box is difficult and may result in the loss of orders.

Discussion on follow-up strategies

Advantages

• Quickly increase sales and traffic.
• Convenient for on-shelf and off-shelf management.

Disadvantages

• There is a risk of infringement, which may lead to store closure.
• Price competition is fierce and profits are compressed.

Characteristics of generation operating model

Features

• Provide professional services.
• Fees are settled based on performance.

Advantages

• Control risks and protect the brand.

Disadvantages

• The seller has less control.
• The quality of service providers varies.

Conclusion

To sum up, Amazon’s cross-border e-commerce platform and its related services have their own pros and cons. When choosing a specific operating strategy, merchants should comprehensively consider their own conditions and target market characteristics in order to make the most appropriate choice.