Amazon Summit begins! There is a solution to the logistics problem!

Let’s start today’s main text.

Amazon used to hold a China Seller Summit every year, which can be said to be Amazon’s largest event in China. Every year, the participating sellers would fill the entire conference hall.

Last year, we went to the conference site to report on the grand occasion and some new trends officially disclosed. However, due to the pandemic, Amazon moved the summit online this year. And there was not much publicity, so many sellers did not know that Amazon held an online conference.

The conference started on the 12th and lasted until the 14th. The most important opening speeches and analysis of trends and policies all ended yesterday. What new trends did Amazon reveal this year?

This time, Amazon announced five major trends for Chinese sellers: more diversified seller types and geographical distribution, accelerated global layout, enhanced brand awareness, faster product innovation and corresponding capacity upgrades.

In summary, Chinese Amazon sellers are more sophisticated and vertical in product selection and operation. Currently, more than 60% of sales on Amazon come from third-party sellers, and Chinese sellers are the backbone. Especially after the epidemic, China's manufacturing industry was the first to resume production capacity before Europe and the United States. This is an excellent opportunity for all Chinese sellers to expand into the global market.

Based on Amazon’s remarks, I would like to summarize for you some of the challenges currently faced by third-party sellers from an official perspective.

First, cross-border e-commerce realizes an end-to-end trade model, which puts consumers at the center of the entire trade process. This requires sellers to not only do a good job of CS in the interaction with consumers, but also to be able to quickly develop, innovate and upgrade products through consumer feedback and data.

Second, brand building is a very important thing at the moment. Overseas production capacity is recovering slowly under the impact of the epidemic, but overseas market demand is increasing instead of decreasing. Chinese products are needed to fill the market gap. Consumers in mature markets in Europe and the United States are more inclined to strong brand effects, so sellers still need to work harder on building global brands .

The third point is complementary to the previous one, which is the global multi-point layout of enterprises. With the help of the Amazon platform, sellers can connect to multiple countries in the world at low cost and high efficiency to conduct business with local consumers. This is not only to open up new markets to increase sales, but also to reduce the operational risks of a single site. Especially now that Sino-US relations are tense, sellers need to use the layout of other sites more quickly to share the potential risks of the US site.

In general, the official trend analysis is a bit larger, and there are few down-to-earth suggestions, which are only useful for larger sellers. I also found some more practical trends for small and medium-sized sellers, which are related to the tail-end logistics that everyone is most concerned about.

Amazon has been frantically expanding its warehouse space recently. In addition to building new warehouses and accelerating ongoing construction plans, it recently cooperated with real estate companies to convert bankrupt department store stores into warehouses, using these FBA operation centers located in the city center to solve distribution problems.

Expanding warehouse space and hiring more warehouse staff are all Amazon's solutions to the current FBA warehouse capacity problem. In addition, Amazon began to restrict shipments in July, and now the delivery time has improved somewhat.

The problem of slow replenishment and warehousing still exists. Because of the serious warehouse overflow, FedEx no longer accepts shipments to FBA warehouses. Most freight forwarding channels have to choose UPS for delivery at the end. UPS's strategy is to give priority to domestic express delivery orders in the United States. Orders sent to FBA warehouses have a lower priority, which has caused the entire replenishment process to be extended several times due to the problem of end-to-end delivery.

Nowadays, many freight forwarders will say that it only takes less than ten days at sea, but they cannot guarantee when you can pick it up after arriving at the port . This is because the last-end delivery is extremely slow due to the above reason.

If the tail end can use other channels, or even its own tail end distribution channels , the logistics time efficiency can be unbelievably fast . The logistics problem is indeed very serious, and everyone needs a logistics service provider that can guarantee fast warehousing time efficiency . We have found a logistics company with its own tail end distribution channels and recommend it to you - Meichen Logistics.

Meichen Logistics' current channels are sea and air transport + truck delivery, with fixed shipping schedules/flights every week. After loading, the goods are directly sent to Meichen's overseas warehouses. Sensitive and dangerous goods are not accepted, so the entire process is rarely inspected, minimizing the time spent in transportation.

After entering the overseas warehouse, we will arrange our own trucks for delivery as soon as possible, so as to avoid the shipment being stuck at the port by delivery companies such as UPS and Fedex. Therefore, the delivery time of Meichen is very exaggerated now. After the ship is sailed, it only takes 15-18 days to enter the warehouse in the West Coast of the United States! It can also be entered in the warehouse in about 18-23 days in the East Coast and the Central Coast of the United States!

Without the bottlenecks in backend delivery and collection, Meichen has achieved a delivery time almost the same as that of the Clippers before the epidemic.