Detailed explanation of Amazon’s operating model: From high-quality products to distribution, multiple strategies help sellers succeed
Amazon, as a world-leading e-commerce platform, provides sellers with a variety of operating models. Whether you are a small seller just starting out or a large seller hoping to further expand your business, you can choose the most suitable operating model based on your own conditions and resources.
Two basic operating models: boutique and distribution
Distribution mode
The distribution model is suitable for those sellers who are starting to start a business and have not yet determined their market positioning. This model is easy to operate, does not require large capital investment, and does not require self-production and logistics management. For new sellers, this is a quick way to get started. The advantage of the distribution model is that it can quickly expand product lines and increase store exposure, but it also faces the problem of fierce market competition.
Premium mode
In contrast, the boutique model pays more attention to product quality and marketing. Sellers need to invest more energy in selecting products and optimizing product pages (Listing). This model is suitable for sellers who have already accumulated experience and customer base through distribution. The advantages of the boutique model are higher profit margins and brand loyalty, which help build long-term customer relationships.
Diversified operation strategy[[11]
In addition to the above two basic modes, Amazon also supports a variety of other operating strategies:
Retail Arbitrage: Offline arbitrage
Earn the price difference by purchasing discounted products in physical stores and reselling them to Amazon. This method is suitable for sellers living in the United States, as there are many opportunities to purchase discounted products there.
Online Arbitrage: Online arbitrage
Similar to Retail Arbitrage, but the purchase channel is an online mall. It is suitable for sellers who do not have geographical advantages and provides a more diverse product selection.
Wholesale: Wholesale model
Buy in bulk directly from manufacturers or distributors and sell on Amazon. Although this method is less profitable, the supply chain is more stable and reliable.
Liquidation/Outlet: tail goods clearance
Obtain low-priced products through clearance and off-stock transactions, and then resell them at a profit. Item status needs to be carefully checked to ensure quality is not compromised.
Private Label: Self-labeling mode
Choose specific products and create your own brand and logo. This requires extensive product selection knowledge and a larger initial investment, but it is a good choice for sellers who want long-term development.
Conclusion
The multiple operating models provided by Amazon provide broad development space for different types of sellers. From simple distribution to complex high-quality production, each model has its unique advantages and applicable scenarios. Sellers should choose the most appropriate method according to their own circumstances and use these models flexibly to achieve business growth. In the future, as the cross-border e-commerce market continues to develop, Amazon will continue to optimize its operating model to help sellers achieve greater success.