Recently, Amazon announced that it will shut down its Amazon Go application at the end of the year, and all original functions and orders will be integrated into the Amazon main app! This is a major move by Amazon to streamline its shopping services and mobile apps so that customers can use Amazon's main app for all online and in-store shopping, rather than having to download separate Amazon apps to buy specific items. Including Amazon Go, Amazon has many niche apps offline and online, such as Amazon Books, Amazon Fresh and Amazon 4-star, etc. These niche shopping software/channels have their own loyal and stable consumer groups. If you want to buy books, you may go to Amazon Books instead of Amazon apps. To a certain extent, this is actually a diversion of Amazon's main mall business. In the past period when Amazon was the only one in the market, this diversion was considered to expand its territory, allowing Amazon to spread its network and expand its territory in more vertical fields. This is not the first step of Amazon's business "retraction". In May of this year, Amazon also merged its independent delivery business "Prime Now" back into the main Amazon program as one of the optional delivery services for shopping in the main mall. Amazon is indeed gradually merging various independent functions or channels into the main mall. Now Amazon is gradually pulling back these scattered branches and leaves, integrating the vertical businesses one by one back into the Amazon Mall. What is Amazon's plan? Is this a simple business merger, or is Amazon also preparing to "band together for warmth"? The pros and cons of merging independent vertical businesses We all know that Amazon's overall platform has not been doing very well recently. On the one hand, it has to face antitrust scrutiny and sanctions, and on the other hand, the platform's overall traffic and order performance has entered a period of stagnation. After a surge in traffic caused by the epidemic last year, the overall traffic is relatively weak, and it is difficult for small and medium-sized sellers to get traffic from the top sellers. Coupled with the closure of big sellers in the middle of the year, the overall performance of third-party sellers is not ideal. Many sellers are working on other platforms. Seeing that Amazon's most serious seller loss is about to come, what is Amazon's answer to this? It is to merge independent businesses this time to give blood transfusion to the main mall. Although the traffic of these independent businesses of Amazon is not as good as that of the main mall, they are also platforms that Amazon has operated for many years and have a certain user base. Integrating these businesses into the main mall will inevitably integrate the users of these independent platforms into the main mall. Once users develop the habit of shopping in the main mall, they will also solve other shopping needs on Amazon. For example, I am a loyal book fan and often buy books on Amazon Books. Now that this app has been merged into the main Amazon mall, I can continue to buy books there, but I can also buy other things there. Then, when I buy books, I will definitely browse or even order other products I need. Gradually, I will develop the habit of changing my shopping habits from other places to Amazon. This is a very natural logic. Therefore, the merger of independent peripheral businesses into the main mall is definitely a big benefit to our third-party sellers. Amazon also wants to use this move to revitalize the current traffic pool in the main mall. You must know that Amazon's e-commerce share has already crushed other platforms around it. It is a rare opportunity to have such a wave of fresh blood. Sellers should pay attention to this window period. Although this wave of traffic will definitely benefit all categories in the end, after all, consumers come from vertical platforms. In the early stage, they will definitely tend to prefer products or peripheral products of the original vertical category. For example, customers who come from Amazon Books may buy some physical book peripherals such as bookmarks, storage, etc. in addition to buying books in the early stage. |
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