Amazon's latest service! Sacrificing sellers' interests?

The reason why Amazon can attract a steady stream of new sellers is that, in addition to being the platform with the largest share of global e-commerce, Amazon's huge number of Prime members is also an advantage that sellers value very much.

Just last April, my brother-in-law revealed that the number of Prime members has exceeded 100 million, most of them are annual members, and it is still growing at an astonishing rate.

▲Membership growth data

▲Proportion of member payment methods

The advantage of these Prime members for sellers is their extremely high user stickiness and spending power. Compared with ordinary Amazon users, the average spending of each Prime member on Amazon has reached $1,400 per year.

As we all know, unlike the developed logistics industry in China, the express delivery industry in the United States has a huge gap in terms of level, timeliness and cost. Slow timeliness, high cost and the casual attitude of couriers are the norm in the express delivery industry in the United States.

Therefore, once the Prime membership, which guarantees timeliness and free shipping all year round, was launched, it was wildly sought after by American buyers. Among the 100 million Prime members mentioned above, American members account for more than 60%, supporting the Prime system.

▲Two-day delivery service for Prime members

Now, Amazon is going to upgrade the core benefits of Prime members again.

According to foreign media reports, Amazon plans to invest 800 million US dollars in Q2 of this quarter to upgrade the default free 2-day delivery service for Prime members to free 1-day delivery.

Although Amazon has provided faster delivery than 2-day delivery in the past, and some can even deliver within 2 hours, only a very small number of selected products (mostly self-operated) and sellers in a few regions can enjoy this service.

The upgrade of the one-day delivery service involves all Prime members and more than 100 million FBA products on the Amazon platform .

With competitors like Walmart and Target hot on its heels, Amazon is having to come up with some tough tactics to solidify its dominance.

Most products can be delivered within one day. This time efficiency upgrade will definitely lead to a further explosion in the number of Prime members , ushering in the era of Prime for all in the United States !

The surge in the number of members is of course a good thing for us sellers, as strong consumer power can bring sellers more traffic and conversions. But is the one-day delivery service really all-round beneficial?

In fact, the one-day delivery service is not unfamiliar to us Chinese. JD.com, an imitator of Amazon, has long been able to achieve the delivery time of its own products within the next day. So how did JD.com achieve this?

In fact, the principle is very crude - if there are many warehouses, shipment will be made from the warehouse closest to the customer.

So how many FBA warehouses does Amazon have so far? Very bleak, only a little over a hundred (if you want a detailed list and code, please PM me at the end of the article to get it)

In order to ensure that buyers can enjoy one-day delivery no matter where they are, Amazon needs to store the inventory of FBA sellers in different warehouses more dispersedly.

In other words, the situation of our sellers' replenishment being divided into warehouses will be very serious. Not only will the warehouses be divided more frequently, but they will also be divided into a large number of different warehouses.

In this way, sellers may need to pay more first-mile fees when replenishing goods, or even prepare more goods, and the warehousing fees will increase further.

If you think a little more creatively, and the seller uses the warehouse consolidation service but cannot achieve the one-day delivery time, will the seller be demoted? This is an unavoidable problem.

However, according to the deadline given by Amazon officials, this one-day delivery service will not be fully popularized at least before Prime Day this year and will still be a small-scale test.

However, this news can cause the number of Prime members to surge right now, so we should hurry up and prepare for this Prime Day . Only by making enough money can we better cope with the cost increases that we may face in the second half of the year.

We have received many inquiries from sellers regarding preparations for Prime Day .

Are you hesitant about whether to sign up?

Some people are participating for the first time and don’t know what preparations they need to make.

There are also some sellers who are not planning to participate but do not want to miss this peak traffic period.

In response to everyone's various situations, Teacher Alice shared our Prime preparation experience with everyone at our offline fan gathering in Hangzhou , including the following key points.

1. What preparations are needed for listing?

2. How much stock should be prepared to avoid unsold goods and out-of-stock situations?

3. Primeday preparation examples

4. New Primeday rules explained

Whether you are a seller who has signed up for Prime and wants to hear the experience of big sellers in preparing for the event, or a seller who has not signed up but also wants to make good use of this traffic explosion.

Everyone can benefit from the Primeday trend, and after the sharing, there will be a 1-on-1 Q&A session with many guests headed by Teacher Alice.

Of course, this event is also an opportunity for our fans to meet and communicate offline, so as long as everyone shares the venue fee ( only 58 yuan! Cheaper than a buffet ) you can participate

Just scan the QR code below to find me and sign up~

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

Source: Cross-border Business School

For the highlights of the past, please click the link below to review

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