Amazon is about to be split up by the government! Start with this business

The closer it is to a big sale, the more likely things are to go wrong. In the past few days, we sellers have experienced credit card rejections, store closures, and pesticide removals. Even Amazon has been targeted by European government agencies because of its layout in the logistics field and has been caught up in yet another antitrust investigation.

Amazon is involved in cross-border logistics and cross-border platforms at the same time, trying to guide third-party sellers to choose its own logistics services in various forms. This is obviously a serious violation of the antitrust laws of the European Union and even the United States.

In fact, we sellers all know that it is an indisputable fact that Amazon is involved in many fields, from logistics to payment collection, from self-operated products to building cloud services. Amazon's huge size will inevitably form a monopoly, and we sellers have nowhere to complain.

After senior U.S. government officials revealed their intention to split up Amazon's major businesses at the beginning of the year, we sellers have been looking forward to further official action.

There was no further news about the split plan. Just when we sellers thought that this was another smoke screen by the US government, foreign media reported again that the US government was preparing to split Amazon's business!

US government begins breaking up Amazon

Earlier last month, Amazon lost a competition with Microsoft and handed over a $10 billion cloud service order from the Pentagon to its old rival. The reason why Amazon failed to win the order was not due to its own business problems . An official spokesperson of Amazon later claimed that

According to information disclosed by foreign media, the reason why the Pentagon chose Microsoft is not only due to the conflict between President Trump and his brother-in-law, but also because the US government has internally planned to spin off Amazon's cloud service AWS.

Cloud service AWS is one of Amazon's strong and powerful main businesses. Amazon was able to return to the throne of the world's largest market value at the beginning of this year, which was inseparable from its two left and right arms: advertising and cloud services.

There is a reason why the US government wants to take the initiative against AWS. Compared with Amazon's other businesses, AWS is relatively more independent in content, and there is no inseparable business intersection with Amazon Mall and others.

And AWS's current operating method is also very special. It has its own CEO and CFO. Although they need to report directly to my brother-in-law, AWS has a high degree of autonomy.

Regarding the possible split, AWS CEO said

Although Amazon's official attitude towards the split has been the same for ten years, if the US government is already doing related work, I believe that even someone as strong as my brother-in-law cannot go against the state apparatus. The splitting of Amazon's business is only a matter of time and degree.

After eating my brother-in-law’s gossip, I would also like to talk to you about the upcoming split of AWS cloud business. What impact will it have on our third-party mall sellers?

In the long run, spinning off AWS is only the first step in breaking up Amazon. What American politicians want to do is to split the giant Amazon into several small companies that are independently responsible for their own businesses.

The reason AWS was chosen as the first step in the split of Amazon is that AWS is relatively independent and involves the least changes. After AWS is split, the next step will be the self-operated business and advertising business.

When it comes to self-operated business, Amazon sellers are very angry. In addition to collecting FBA fees, commissions, advertising fees, etc., Amazon also has to sell goods on the platform and compete with sellers. Many sellers have spent money upfront, but the orders are taken away by self-operated businesses.

Amazon even recently moved its own products to the second row of search results, grabbing the most prime display positions. During that period, sellers reported a sharp drop in traffic, and no one thought that Amazon had snatched away these peak season orders.

Therefore, the separation of self-operated businesses is a result that everyone expects. No one except Amazon itself wants to see Amazon's monopoly behavior of being both a player and a referee.

After AWS, the US government will definitely put the splitting of self-operated businesses on the agenda. As sellers, we will not only be able to avoid unfair competition from the government, but also gain channels to complain about platform decisions because of government intervention.

However, by then, although we don’t have to worry about Amazon’s unequal policies, we will still have to face fierce competition from sellers. The compliance of the entire platform also means that our sellers’ operating methods must gradually transform to white hat methods. I have collected a list of key points for white hat evaluation methods. Students can scan the QR code below to get it from me~

PS. If you want to join the seller discussion group, you can also private message me to let me add you to the group