How Can Amazon Ensure That Both Old And New Sellers Can Enjoy Healthy Growth?

From 2001, the platform will be opened to third party sellers and exported to China in 2012.

Business, until now, more than 10 years of grinding.

A mature third party platform system has been established.

Although Amazon officials have never disclosed the number of sellers they have, the activity level of Chinese export sellers and its aggressive investment strategy in recent years in China show that the Amazon platform has accumulated a lot of sellers, and there will be more sellers coming in.

However, the resources that the larger system can provide are always limited.

In the process of continuous influx of new businesses, how should the platform side allocate resources reasonably to ensure that both the old and new sellers can enjoy a healthy growth? This may be a topic that Amazon and even the big business platforms need to study.

Continue to tap existing user needs and seek new growth.

To ensure the continued growth of sales volume of new and old sellers, Amazon's most direct way is to promote its own turnover.

Dai Jingfei, vice president of Amazon China and head of the Asia Pacific region of Amazon global open shop, pointed out to reporters that although the United States is a more mature market for Amazon, the growth of Amazon's US station is still very significant.

Amazon's third quarter earnings report showed that Amazon's net sales of electronic products and other consumer goods from North America reached $15 billion 327 million in the third quarter of September 30th, up 29% from 11 billion 840 million dollars in the same period last year.

On the other hand, Amazon's international business has also maintained a relatively high growth rate.

In the third quarter, Amazon's net sales of electronic products and other consumer goods from the international region amounted to $8 billion 56 million, an increase of 36% over the 5 billion 901 million US dollars in the same period last year.

It is not easy to get large increments in the market that has been ploughing for many years, so Amazon is also actively entering new markets to achieve faster growth.

Among them, the "Amazon Business seller recruitment program" launched by Chinese sellers this month is Amazon's new recruitment plan.

One of the important practices.

According to the world clothing and shoe net, AmazonBusiness was officially released in the United States in April 2015. It is a B2B business platform for Amazon and enterprises.

According to Robert AmazonBusiness, director of the third party business of the AmazonBusiness, AmazonBusiness online turnover has been as high as 1 billion US dollars in the more than a year on the line, and more than 400 thousand of service companies and institutional users.

Compared with other emerging platforms in Europe and America, this growth rate is also impressive.

Wish, the 5 year old mobile e-commerce platform in Europe and the United States, achieved billions of dollars in annual sales last year, while AmazonBusiness can only reach one-third of its total in just one year.

It is worth noting that Amazon Business was originally set up not to expand new user groups, but to tap the needs of existing user groups.

"Amazon is aware that many business users themselves are also Amazon's personal consumer buyers.

When these buyers purchase business, they will unknowingly copy the purchasing experience of individual consumers to the commercial purchasing mode.

Amazon launched AmazonBusiness to respond to the needs of these customers.

So said Rob Green.

This has also become one of the most important ways for Amazon to expand its new market to achieve incremental growth.

Eric Bruce, the vice president of Amazon, told reporters that the best choice for users is Amazon's value, so Amazon will continue to tap the needs of users and bring new business growth to sellers.

Let users make decisions to win the fittest

It is worth noting that while Amazon has maintained a good sales growth, some of the best sellers are growing very fast, even far beyond the speed of development of the platform itself.

This year, the export business enterprises listed on the new third board in China can confirm this point.

It is understood that in the first half of this year, the new three board listed export business enterprise Ao base business revenue grew 137.27% over the same period last year.

Coincidentally, with the new three board listed companies, PepsiCo revenue growth is also as high as 111.72%.

In August this year, the price chain of new three boards was listed, and the growth rate of revenue in the first half of this year was 412.82%.

The Amazon platform is the focus of the business of these three enterprises.

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However, the annual sales growth of the platform is limited after all, and the rapid growth of the sellers has also indicated that some sellers will fall.

The electronic commerce platform must have a mechanism to win the survival of the fittest on the platform sellers.

Amazon's choice of mechanism is very simple - let buyers make decisions.

"In terms of how to leave good sellers and eliminate bad sellers, the final decision is in the hands of users."

Eric Bruce, vice president of Amazon, told reporters that Amazon users would use their mouse to vote for what products they need, and that sellers who provide these products are good sellers.

As a result, the evaluation system has become the focus of the Amazon's survival of the fittest mechanism.

An export seller who sells over 100 million yuan per year said that compared with China's e-commerce platform, the evaluation of products on Amazon is more realistic. The platform has accumulated a large number of high-end consumers through this evaluation system.

But at the same time, the sellers also expressed their concern to reporters: as more and more sellers poured into Amazon, many sellers began to use brushing comments to make their ranking more advanced, which would not only affect other sellers, but also lead to the loss of buyers relying on the evaluation system.

Of course, Amazon itself is doing all it can to protect this evaluation system.

According to the world clothing and shoe net, in September of this year, Amazon released a new policy of commodity evaluation. Buyers could spend at least 50 dollars on Amazon's credit card or debit card for comment.

Obviously, Amazon hopes to improve the evaluation threshold to make product evaluation more reliable.

In addition, according to the world clothing and shoe net, in November this year, Amazon also deleted the "incentivizedreviews" on the website based on the analysis of more than 32 thousand products and about 65 million reviews recently.

Incentive reviews refer to sellers offering free or discounted products to buyers in exchange for the positive evaluation of the latter on e-commerce websites.

The center of gravity is product quality, seller type does not matter.

In fact, if we want to improve the quality of the seller in the platform, the best way is to start from the source, that is to say, when we inviting investment, we set up the threshold to filter the sellers who do not meet the requirements.

Indeed, in the second half of this year, Amazon has also begun to extend its olive branch to manufacturers that are more capable of controlling product quality.

In September of this year, Amazon announced the launch of Amazon's "manufacturing +" project, providing specialized service and operational support to manufacturers, and formally layout M2C mode (Manufacturestocustomer producers directly to consumers).

And let more manufacturing enterprises through cross-border electricity supplier channels to overseas markets has become one of the four strategic priorities of Amazon's "global shop" in 2017.

Insiders analyzed that at present, China's export electricity supplier groups can be simply divided into traders, manufacturers and brand companies and other modules.

Among them, traders occupy a higher proportion in the export electricity supplier group.

Amazon launched the "manufacturing +" project to make some trade sellers worry: will the platform pay more attention to manufacturers, resulting in resource tilt?

In this regard, Dai stressed that "manufacturing +" was released because Amazon found that the demand for Chinese manufacturing enterprises was not the same as traders. The manufacturer itself did not have such rich brand operation experience as a trader and needed more help in operation, so it needed a more full range of service and operational support for the company.

But this series of support is only service support, and there will be no inclination of similar traffic resources.

Dai Jingfei believes that this way will compromise the fairness of the platform. Amazon still insists on matching products and consumers through product prices and customer feedback and click through rate, and it will not be manipulated artificially.

"Good product is still the focus of Amazon.

As long as high quality products, whether from branding, manufacturers or traders, Amason is welcome.

Amazon will pay attention to sellers with high quality sellers and customer experience.

Dai Jingfei said that the fundamental principle of Amazon's choice of sellers is quality, and seller type is not the key.

However, the use of resource support is still the mainstream mode of macro regulation of the seller's group by the domestic e-commerce platform.

"Tmall, for example, has a large number of platform businesses, but Tmall will give priority to flagship store resources. I hope this way to encourage brand officials to open flagship stores in Tmall, so as to enhance the credibility of the platform as a whole."

A senior electric business insider said so.

Of course, platforms are different in terms of market groups, scale and product nature.

Whether the allocation of resources and macroeconomic regulation and control of the seller group, and what criteria to regulate, different platforms may produce completely different practices.

It may only be possible to wait for time to verify which way to succeed.

More interesting reports, please pay attention to the world clothing shoes and hats net.