Detailed explanation of Amazon logistics network layout and product selection strategy

Amazon has built a huge logistics network around the world to ensure that its products can be delivered to consumers quickly and accurately. This process not only includes the fine control of warehousing, air freight, distribution and other links, but also involves how Amazon improves overall efficiency by optimizing its logistics services.

Logistics network layout

1. Warehousing fulfillment order

Amazon provides third-party sellers with integrated warehousing and distribution services by opening up its internal logistics services. This approach allows Amazon to better utilize its excess logistics capabilities while also enhancing its bargaining power with express delivery service providers.

2. Mainline air transport

In order to reduce its dependence on traditional freight companies, Amazon established its own air freight network – Amazon Prime Air, and set up its first air freight center in Kentucky, USA, to cooperate with the world’s largest air transportation center UPS Worldport and FedEx’s largest parcel sorting center is adjacent to it.

3. Delivery network

In addition to leasing aircraft, Amazon has also launched FTS vehicle freight services and Seller Flex autonomous delivery services. In addition, Amazon has further expanded the coverage of its delivery network by recruiting delivery service partners.

4. Instant delivery + offline stores

Amazon is developing a new retail model, through AmazonGo unmanned supermarket and Amazon Fresh fresh food delivery service, combined with Whole Foods supermarket, to achieve online and offline integration.

5. Global Freight Logistics

AGL, the global logistics booking platform launched by Amazon, provides sellers with a full range of logistics solutions from China to overseas, including first-leg transportation, warehousing, packaging and freight delivery services.

Notes on product selection

1. Avoid blindly following trends

Although it is feasible to choose hot-selling products on the platform such as Bluetooth headsets, mobile power supplies, etc., the competitive pressure is huge for new sellers.

2. Do not list consignment websites with one click

In the FBM no-source model, this approach will make sellers very busy and difficult to make a profit.

3. Market analysis is indispensable

Selecting products based solely on personal preference often leads to failure, especially considering the differences between Chinese and Western cultures.

4. Reasonable pricing

Excessive pursuit of high quality may lead to excessive costs, thereby affecting the market competitiveness of products.

5. Pay attention to differentiated risks

Excessive pursuit of product differentiation will increase the operating cycle and cost, which is not conducive to long-term development.

Unpopular product selection strategy

1. Integrate resources

Choose an industry with a complete industrial chain as the entry point to help reduce costs and increase profits.

2. Utilizing big data

With the data analysis tools provided by the platform, sellers can make better product selection decisions.

3. Determine the target market

According to the actual situation in the region, select products suitable for the local market for sale.

4. Focus on brand building

Work with reputable manufacturers to jointly develop products and create a lasting brand image.

Conclusion

Whether it is logistics network layout or product selection strategy, Amazon is constantly adjusting and improving its business model to adapt to rapidly changing market needs. For sellers, knowing this information can help them occupy a more advantageous position in the fierce market competition.