Amazon launches full hosting? NO! It’s “full” hosting!

Recently, Amazon Vice President Mehta announced a major news:

Amazon officially launches end-to-end supply chain service "Supply Chain By Amazon"!

As the global leader in e-commerce, Amazon has announced in the past two years that many platforms will implement a full-hosting model, which means handing over stores, products, and operations to others. Sellers only need to provide products and act as "suppliers."

Everyone is familiar with Temu's full hosting model, right? In the "full hosting model", Temu's sellers only need to supply goods, while the operation, logistics, after-sales and other links are all handled by the Temu platform, which not only undermines the operating rights of Temu platform sellers but also greatly reduces the profit margins that sellers can obtain.

Temu's pricing can be said to be extremely crazy, with operations such as 0 yuan purchase, 9.9 free shipping, no returns but only refunds, which made a large number of consumers quickly addicted in a short period of time.

"Can anyone tell me what's going on with Temu? Doesn't he need to make money? Or does he not know how to run a business? It's unbelievable that a sweatshirt shipped from China costs only $2.44, and shipping is free?"

On the other hand, the “full hosting” launched by Amazon this time is obviously different from Temu. Amazon’s focus is on full hosting in logistics!

Take care of logistics, reduce costs and increase delivery speed.

To be precise, it is more like an upgraded version of FBA. Let’s take a closer look.

That is to say, Amazon controls everything from the time the product is shipped from the factory to the hands of the consumer. Amazon also said that this new service can be used not only to sell goods on Amazon, but also on other online platforms, independent websites and physical stores. This service will simplify the entire supply chain process, help sellers manage inventory, enjoy faster logistics speeds, and significantly reduce costs. Amazon said that using this new service can increase sellers' delivery speeds, thereby driving an average increase of 15% in unit sales. This is good for factory-type sellers! The profit is definitely higher than Temu!

For sellers, the topic of whether to join full custody is polarized:

Supporters: It can save a lot of unnecessary trouble. Sellers only need to focus on operating product supply, and maybe they can get some traffic from the Amazon platform.

Opponents: They think it is too risky. After using Amazon's full trusteeship, the seller's information becomes "transparent". What if Amazon directly purchases goods from the factory in the future? It is equivalent to half "overhead". The seller's small capital pool may also face considerable challenges.

Sellers still need to worry about advertising, sales, pricing, and reviews, but there should be some crisis for freight forwarders who are not strong enough. I wonder what everyone thinks about Amazon's full trusteeship?