Will Amazon's self-operated business be hit hard? Antitrust bill may be introduced, sellers have an opportunity!

Will Amazon's self-operated business be hit hard? Antitrust bill may be introduced, sellers have an opportunity!

It’s less than a week away from the Spring Festival. I wonder how all the cross-border sellers are feeling?

 
In the communication group, we can see that many sellers have returned to their hometowns or have embarked on the journey back home. But some sellers are still at work, eagerly waiting for the holiday, and the days are like years.
 
The approaching Spring Festival means that the work in 2021 has come to an end. What kind of achievements have sellers achieved in the cross-border arena in the past year?
 
Recently, many sellers have disclosed their 2021 performance forecasts. Looking at the performance reports of the big sellers, it can be said that good news has been coming frequently.

Ecovacs' net profit will reach 2 billion yuan in 2021

It is learned that recently, Ecovacs, a big seller of sweeping robots, released an announcement of expected increase in performance for 2021.
 
  The picture comes from Ecovacs announcement
 
From January 1 to December 31, 2021, Ecovacs' main performance data are as follows:
 
1. Ecovacs expects to achieve a net profit attributable to shareholders of listed companies of RMB 2 billion to RMB 2.05 billion in 2021 , an increase of approximately RMB 1.36 billion to approximately RMB 1.41 billion compared with the same period last year, a year-on-year increase of 211.9% to 219.7%.
 
2. The net profit attributable to shareholders of the listed company after deducting non-recurring gains and losses reached RMB 1.85 billion to RMB 1.9 billion, an increase of approximately RMB 1.32 billion to RMB 1.37 billion compared with the same period last year, a year-on-year increase of 248.4% to 257.8%.
 
It is learned that Ecovacs is one of the representative companies of sweeping robots in the world. In the first three quarters of 2021, Ecovacs' revenue increased by 99% year-on-year, and its net profit increased by 432% year-on-year to 1.33 billion yuan, with a strong growth trend. According to market data, in the first half of 2021, Ecovacs brand sweeping robots accounted for 42.6% of the market retail sales.

Cross-border navigation , Ecovacs disclosed the announcement of the expected increase in performance in 2021, and the net profit may soar by 200%! #Amazon##Cross-border headlines#Cross-border e-commerce video account
Video account focuses on cross-border navigation

In the announcement, Ecovacs also explained the main reasons for the expected increase in performance this period:
 
1. Two major brands drive business
 
Based on the successful creation of Tineco brand scale business in 2020, in 2021, the dual-wheel drive strategy of Ecovacs and Tineco was deepened, and a number of globally best-selling household service robots and high-end smart life appliances were successfully launched, driving the rapid growth of the business revenue of the two brands.
 
2. Continuous optimization of product structure
 
On the basis of rapid revenue growth, the company continued to optimize its product structure. While leading the industry in high-end product technology, the overall gross profit margin also achieved significant improvement, further enhancing overall profitability.
 
However, in 2021, affected by factors such as the global macroeconomics, Ecovacs experienced challenges like other companies in terms of raw material costs, chip supply, transportation costs and foreign exchange.
 
Looking ahead to 2022, Ecovacs will further expand its global business footprint, seize growth opportunities in the robotics and smart life sectors, and lay a more solid foundation for the company's long-term development.
 
It can be seen that both large and small sellers face the same challenges on the road of cross-border sales. As a third-party seller, you must not only compete with your peers, fight wits and courage with buyers, but also battle with the platform's own operations.
 
Although Amazon's own brands have their own advantages, the new antitrust bill proposed by the United States recently has continued to suppress them. Will third-party sellers usher in a sales turnaround?
 

The United States may introduce a new antitrust bill

It is learned that according to foreign media reports, the US Senate Judiciary Committee proposed two new antitrust bills - the American Online Innovation and Choice Act and the Open App Market Act.
 
 
It is understood that if the above bill comes into effect, it will pose a huge threat to the status of large technology companies. It will prohibit dominant online platforms from favoring their own products and services.
 
The impact of the Open App Marketplace Act was largely limited to companies that operate app stores, like Apple and Google; the American Innovation and Choice Online Act has a broader impact and could prevent companies like Amazon from giving their own-brand products better search rankings than third-party competitors.
 
In addition, the US bill proposes to give antitrust enforcers "powerful and flexible tools", including "civil penalties, seeking broad injunctions, administrative compensation" and other powers. It can be seen that with the rapid development of e-commerce, US legislators are strengthening the control and constraints on the industry.
 
Amazon, the e-commerce giant, has received several antitrust charges from the United States and the European Union. As early as November last year, Amazon launched a website to seek support from sellers and inform them that the implementation of relevant laws may affect their business.
 
 
So what is the seller’s attitude towards this?
 
It is learned that some Amazon's own brands not only use their own advantages to grab third-party sellers' traffic, but also use unfair competition methods such as copying sellers and stealing sellers' products. It has been reported before that Amazon develops internal labels to allow its own brand products to occupy a prime position on the platform.
 
Therefore, most sellers do not agree with Amazon's self-operated practice, believing that the platform is ugly and harms the interests of sellers and buyers.
 
  The picture comes from Zhiwubuyan
 
Under such circumstances, Amazon's own brands account for an increasingly larger share of the platform, which not only threatens the survival environment of third-party sellers, but also causes a tilt in platform traffic, putting third-party sellers at a disadvantage.
 
The several antitrust bills proposed by the United States can effectively combat Amazon's self-operated monopoly practices.
 
In response to the new bill, Brian Huseman, Amazon's vice president of public policy, said the bill would harm consumers and more than 500,000 U.S. small and medium-sized businesses that sell in Amazon stores. It would also jeopardize Amazon's ability to operate a marketplace for sellers and significantly reduce the number of Amazon Prime subscribers.
 
As more and more regulatory laws and regulations are introduced, the status of Amazon and its own brands will be greatly threatened, and it is difficult to predict how its own business and third-party business will be divided at that time.



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