Global Amazon market overview and analysis of regional characteristics

As one of the world’s largest e-commerce platforms, Amazon has attracted many cross-border e-commerce sellers, especially those from China. According to Marketplace Pulse research, in 2019, there were more than 2.5 million active third-party sellers on the Amazon platform, of which the number of sellers with annual sales exceeding US$100,000 reached 140,000, and the number of sellers with annual sales exceeding US$1 million exceeded 20,000. .

1. Amazon Global Market Overview

In 2018, Amazon’s net sales reached US$232.887 billion, a year-on-year increase of 30.9%, and net profit reached US$10.073 billion, a year-on-year increase of 232.1%. Especially in Europe and the United States, Amazon’s market share has gradually increased. In 2018, the proportion of successful sellers on European sites increased from 15% in 2016 to 39%. In addition, Amazon’s Prime membership system has developed rapidly. As of mid-2019, the number of members has exceeded 105 million, which has greatly improved the platform’s consumption power.

2. Analysis of website characteristics in various countries

2.1 Japan

The consumption habits of buyers on Amazon Japan are similar to those of Chinese buyers, making it an ideal place for Chinese companies to contact cross-border e-commerce. Japan has a high e-commerce coverage, with about 70% of buyers accustomed to online shopping. In addition, due to high cultural loyalty, Japanese buyers have a significant repurchase rate and a relatively low return rate, which reduces sales costs for sellers.

2.2 Europe

Amazon’s European sites include the United Kingdom, Germany, France, Italy and Spain. Its market traffic and competitiveness are comparable to those of its North American sites, and there is relatively less competitive pressure. Specifically:

• UK Station: Buyers pursue the practicality of products, the e-commerce market is developing rapidly, and online shopping spending continues to set new records.
• Germany Station: Consumers are rational, brand products are of high quality, and the return rate is high. The law allows returns within 14 days.
• France Station: French buyers pay attention to the accuracy and attractiveness of product information when shopping, and their online shopping behavior often has a clear purpose.

2.3 Australia Station

Amazon Australia only includes Australia. Buyers in this market have high purchasing power, with an Internet penetration rate of 88%. At the same time, Australia has a large demand for imported goods, especially Chinese goods because of their price advantages.

2.4 Italy

In recent years, the Italian e-commerce market has continued to expand. The current total population is about 60 million, and about 32 million people are accustomed to online shopping. Italian consumers pay attention to brand influence and product practicality, and have high requirements for products. Brand loyalty is prominent in the Italian market, so sellers need to fully consider brand influence and audience preferences when choosing products.

3. Summary

Amazon’s global market continues to expand, especially for Chinese sellers. The characteristics and market potential of each of the above sites provide a good opportunity to enter cross-border e-commerce. In the future, with the development of the global e-commerce environment, sellers will need to have an in-depth understanding of the characteristics of different markets in order to formulate effective sales strategies.