According to morning news on May 17th, Beijing time, according to Bloomberg News, Amazon.com is preparing to go deep into Alibaba's headquarters and face up with the Chinese e-commerce giant.
In the next few weeks, Amazon will soon hold an event in Hangzhou, where Alibaba’s headquarters is located, and 400 Chinese companies that are keen to sell electronic products, auto parts, household goods and more directly to consumers in the United States and Europe. Manufacturers interact. The invitation letter for this event shows that Amazon experts will provide in-depth analysis of purchase trends to help merchants fully stock their holiday season in 2018. The event was sponsored by the Amazon Global Selling program and the event was named "U" coming from U (Coming Together For U).
This event is part of Amazon’s efforts to transition from an e-commerce platform to a global logistics operation. Its purpose is to help Amazon businesses go out and directly connect with Chinese manufacturers. Amazon will help merchants purchase goods directly from the factory and ship them to other countries to complete orders and deliver quickly. Amazon will charge for it. Fast delivery can help Amazon dominate the US e-commerce market, and the company hopes to extend this practice worldwide to compete with e-commerce companies such as Alibaba, eBay and Wish.
Amazon declined to comment.
Currently, Amazon has 100 million paid users worldwide. As a major e-commerce platform, they have the ability to connect shoppers in one country with businesses in another country. The company is advancing vigorously in India and Latin America. It also launched a business in Australia last year and gained a foothold in the Middle East through the acquisition of Dubai's Souq.com website.
For consumers, whether they are living in Paris, Beijing or Sydney, they are looking for products with better prices and products that cannot be found in the country. Therefore, people are increasingly willing to buy from overseas businessmen. According to a report released by DHL Global Express in 2016, cross-border transactions are growing faster than domestic e-commerce sales and are expected to reach US$900 billion by 2020, accounting for 20% of the global market.
Cross-border sales are a major focus of Amazon's logistics development. Last year, the company organized an event in New York City that provided 1,500 merchants with currency exchange services and language translation tools to help them sell to overseas customers. Amazon can use the business scale and linkage with international shipping companies to obtain freight discounts as a lure to attract more businesses and goods to the platform.
More than 2 million independent merchants now sell goods on the Amazon platform and pay commissions for each sale. The competition between them helps keep prices low, update inventory, and help Amazon attract more than 300 million global customers. E-commerce is still the company's most important business in the United States. But as shoppers are increasingly willing to go abroad to find goods, Amazon sees opportunities to sell more services to online businesses. The revenue of such services surged 39% in the first quarter to reach US$9.3 billion.
However, Amazon's efforts may cause trouble for some of its business partners.
"When Amazon introduces the Chinese factory into the platform and makes it directly in contact with end consumers, independent businesses will be forced to compete directly with their suppliers," said Ryan Petersen, CEO of Flexport; R&D; Petersen ) Said that the company helps Amazon businesses import products from overseas. "For those businesses reselling Chinese products rather than producing original products, this new competitive model will make business very difficult." ”