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It is learned that on August 2, Fortune magazine released the 2021 Fortune 500 list. Amazon ranked third in the top 500 list ranked by revenue. As Amazon and my brother-in-law become more and more wealthy, sellers’ wallets become thinner and thinner. They all joke that they are cross-border philanthropists. Their daily work is very complicated, mainly including the following three things: 1. Targeted poverty alleviation in developed countries 2. Give money to the world's richest man 3. Committed to widening the gap between the rich and the poor So how much have cross-border philanthropists contributed to Amazon? The following report on Amazon's advertising business may give you the answer. Advertising business grew 87% Amazon advertising revenue exceeds $7.9 billion It is learned that Amazon's advertising business revenue in the second quarter increased by 87% year-on-year to more than US$7.9 billion. This is higher than the 41% year-on-year growth in advertising business revenue in the second quarter of 2020 and higher than the 77% year-on-year growth in the first quarter of 2021. It is reported that in 2020, Amazon accounted for 10% of the US advertising market, and its share is expected to continue to grow this year. It is learned that most of Amazon's advertising revenue comes from sponsored banners at the top of product search results pages. At the same time, Amazon Advertising also launched more than 40 new features and self-service services in the second quarter to increase the growth of its advertising business. Behind this brilliant achievement, every penny of advertising fees from sellers is indispensable. One seller sighed: I finally feel the value of doing Amazon, which is to make Amazon fat. Some sellers also analyzed that the surge in Amazon's advertising revenue is due to the following reasons: 1. New sellers do not understand advertising and their advertising fees are inflated 2. Amazon banned fake orders, and the CPC of in-site ads soared 3. Sellers in the industry are in a state of internal competition, and high advertising fees are prevalent The high advertising fees also reflect Amazon's future development trend. When black technology and illegal behaviors gradually fade away, more sellers will move towards compliant operations and increase their order volume by placing in-site advertisements. This is both a forced transformation for sellers under the wave of account bans and a means for Amazon to increase advertising business revenue. Even though Amazon's e-commerce empire is already very large, some of its policies and practices are often criticized. In particular, the storage capacity restriction policy implemented since last year has been like a mountain, weighing down sellers. Although Amazon is willing to improve this situation, in fact, sellers have to face this problem for a long time. Amazon expands global logistics network Limit storage capacity or normalize It is understood that in 2020, due to limited warehouse staff and supply capacity, Amazon has several times restricted sellers' shipping and replenishment quantities. To this day, Amazon is still frantically trying to make up for its supply chain shortcomings. In the past 18 months, the number of Amazon's warehouses and transportation networks has doubled, but it still cannot meet Amazon's warehousing needs. It is learned that Amazon is increasing its investment in its own warehouses and logistics networks. Amazon plans to add 517 facilities to its global distribution network in the next few years, according to logistics consulting firm MWPVL International . These will add 176 million square feet (equivalent to the size of 3,696 American football fields) to the 402 million square feet Amazon already has . Logistics analyst Marc Wulfraat estimates that Amazon could handle as many as 7.5 billion packages in 2021 , not including packages it sends through companies like FedEx or UPS. It can be seen from this that the highly tense situation in Amazon warehouses and among workers will continue for some time. Before there is sufficient transportation capacity and storage space, sellers' storage capacity restrictions may exist for a long time or gradually become normalized. In addition to the above-mentioned logistics network problems, sellers, as an endless army of leeks, have also personally experienced Amazon's "fancy slaughtering methods", including the high logistics and shipping fees charged by Amazon to sellers. High shipping costs under fire Amazon faces another antitrust lawsuitIt is learned that Amazon has recently been hit by a new antitrust lawsuit. Cross-border navigation forces you to pay an extra 35% shipping fee, Amazon's logistics service is criticized! #Amazon#Cross-border headlines#AMZ132#Cross-border e-commerce video account It is understood that 90% of buyers’ purchases on Amazon are made through the “Buy Box”, but the products in the “Buy Box” are all from sellers with the Prime badge, and the only way to get the Prime badge is to use the FBA logistics service. The lawsuit claimed that Amazon's actions violated US antitrust laws, forcing sellers on its platform to choose only FBA logistics services and not other logistics services, and that the logistics costs were 35% higher than other logistics services. Under the high shipping costs, sellers have to raise product prices to control the profit margin of the products. In the end, consumers still have to pay for the price increase, which has caused dissatisfaction among many buyers. The lawsuit states that Amazon's anticompetitive behavior harmed hundreds of thousands of businesses and hundreds of millions of consumers, and that Amazon overcharged consumers by approximately $5 billion in 2020 and billions more in prior years . This is not the first time that Amazon has been accused of similar crimes. In recent years, there have been endless news reports about Amazon facing various antitrust investigations and fines, but Amazon has not made any positive explanation. What do you think about this? Feel free to leave a message in the comment area~
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