What is the current market situation and operation situation of Amazon?

What is the current market situation and operation situation of Amazon?


First look at the basic trend of any industry: an industry with high income and low barriers to entry → a large number of people pour in → profits drop to a level that many people don’t want to pour in → gradually the industry becomes stable.

Amazon was in a stage of "a large influx of people (sellers)" from 2020 to early 2021. The epidemic broke out in early 2020, and the platform traffic and capacity skyrocketed. Existing sellers made huge profits, and there was generally not enough goods. Basically, throughout 2020, the turnover and net profit of the entire industry were growing positively. So much so that at the beginning of 2021, a large number of outsiders (many start-ups/departments) poured in, and companies that made money in 2020 expanded in 2021. The combination of these two aspects made the recruitment enthusiasm in early 2021 extremely hot. How hot is it? Basically, as long as you have more than 1 year of experience or so, download a recruitment software, and before you even look at it, a bunch of headhunters and HR will call you.

Then 2021 is a turning point. From a macro perspective, the platform traffic capacity is limited, the sellers increase greatly, and supply exceeds demand. In this case, the sellers on the entire platform have a large inventory, but the platform demand has not increased significantly, so price spirals are common, freight costs have skyrocketed, platform policies have changed, and supervision has been strengthened... As a result, start-ups have closed down, the original giants have laid off employees, and the net profit margin of mid-level sellers has plummeted... Even Amazon has opened a drainage plan to motivate sellers. It can be seen that the platform's traffic competition is fierce...

2021 as a whole can also be seen as a brutal reshuffle. Throughout the year, in Q1, Q2, and Q3, the net profit margins of most cross-border companies have plummeted. If you look at the financial reports of some industry leaders, some are even in the red. This situation has entered the stage of "profits have dropped to a level that many people do not want to rush in."

So we can see that in 2022, the entire cross-border industry should be developing towards the stage of "gradually becoming stable". The cross-border e-commerce training company next door that opened last year has closed down today. So the current recruitment market, after the "reshuffle" and "strike", on the one hand, compared with the beginning of 21, the recruitment enthusiasm is bound to decline.

In this situation, the demand for recruitment has dropped sharply compared with the same period last year, while the number of people looking for jobs is still the same as last year. In addition, it is the golden March and April, and there are a lot of job-hopping (last year, they joined a lot of unstable companies). Similarly, the recruitment market is in a situation where supply is less than demand. The degree of recruitment competition among companies has declined, and the recruitment salary will definitely not increase compared with last year. It will basically remain the same, and some will even be reduced.

Regarding career choices, the same old saying applies:
products have barriers, supply chains have advantages, operations have methodologies, and salaries and benefits are competitive . You can pay special attention to these types of companies. Of course, companies with these characteristics usually have relatively demanding job requirements. So in the past six months, the concepts of refined, logical thinking, and white hat operations have appeared more and more frequently. You don't need to brag too much about your performance during interviews, because last year everyone had no shortage of turnover, but profits...

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