- December 21, 2023
- Posted by: AQI Service
- Category: E-commerce Business
As cross-border e-commerce has grown in popularity in recent years, more and more people are competing for this sweet “pie”.
From a platform perspective, although Amazon still holds the leading position, the competitive landscape has changed with the addition of many emerging e-commerce platforms.
At the “2023 Amazon Global Selling Cross Border Summit” held on December 12, Amazon Global Selling unveiled several business plans for China in one breath, increasing its efforts in the Chinese market.
From the perspective of sellers, the confidence of sellers in cross-border e-commerce continues to grow, especially as the number of small sellers in traditional industrial belts increases, and the distribution areas of sellers become wider and wider.
“Cross-border e-commerce is a track that the more new forces join, the wider the track will be,” said Cindy Tai, global vice president of Amazon and executive president of Amazon Global Selling Asia Pacific.
Amazon doubles down on China
In terms of business planning for China next year, Amazon Global Selling revealed five strategic priorities for 2024, namely strengthening brand building, simplifying global operations, strengthening global supply chain solutions, driving global expansion and improving local services. The fifth strategy is to improve local services, which can be the company’s important measures to expand its business in China.
With the expansion of China business, the first priority is to improve regional service capabilities. On the day of the event, Amazon Global Selling also announced the establishment of four regional centers in East China, South China, West China and North China, and a new regional center in Central China, including the establishment of new service teams in Wuhan and Zhengzhou. With the establishment of five major regional centers, Amazon Global Selling has further improved its regional coverage and layout in China, and can respond to the actual needs of local sellers in a more efficient and targeted manner.
In addition, the “Amazon Global Selling Asia-Pacific Innovation Center” has been announced to be located in Qianhai, Shenzhen, which has attracted much attention from the outside world. It will be Amazon’s first innovation center in the Asia-Pacific region for global stores, covering innovation display, sharing and learning, resource sharing, innovative practice, etc. The function promotes sellers in the Asia-Pacific region to accelerate innovation in terms of product launch, brand building, digital operations, green development and exploration of new business models.
Cindy Tai said that in this year’s vendor survey, more than 55% of the vendors surveyed ranked increasing new product development as the top priority in their business development strategy. Product innovation is a very important means of differentiation.
In addition, Cindy Tai said that Shenzhen is at the forefront of innovation in China and one of the birthplaces of cross-border e-commerce. At the same time, Shenzhen has very rich industrial resources and a mature cross-border e-commerce ecosystem.
Growing number of small sellers in traditional industrial belts
As more and more Chinese sellers enter the cross-border e-commerce track, many people can’t help but worry whether this track has become too involuntarily involved and has no new development opportunities?
According to Dai Yanfei, the answer is no. Amazon data shows that from October 1 last year to September 30 this year, the number of Chinese sellers on Amazon with sales of more than $1 million increased by more than 25% year on year; the number of Chinese sellers with sales of more than $10 million increased by almost 30% year on year. Nearly 30%.
In addition, during the past “Black Friday” and “Cyber Monday” promotions, Amazon data showed that compared with the same 11 days last year, more than 20% of Chinese brand sellers’ product sales on Amazon’s mature sites increased by more than 11% year-on-year. increased by 50%; more than 15% of Chinese brand sellers’ product sales on Amazon’s mature sites increased by more than 100% year-on-year.
“On the one hand, this shows that Chinese sellers continue to bring products that meet the needs of global consumers. On the other hand, this figure also shows that the cross-border e-commerce track will become more spacious as more new forces join. “Cindy Tai said.
At present, global retail e-commerce accounts for 19.5% of global retail sales, and this market is still very large. As more people participate, more opportunities will make the track wider. This is not competition in the existing market, but competition in the additional market.
According to Amazon’s observation, the number of small sellers in traditional industries joining cross-border e-commerce is increasing, such as clothing in Guangzhou, consumer electronics in Shenzhen, shoes and hats in Xiamen, and so on. They are happy to see that some successful sellers can sell their products in the same segment. Drive many new sellers in different areas.
The areas where sellers gather are also undergoing subtle changes, and the distribution of sellers is becoming wider and wider. From a geographical point of view, sellers in the Pearl River Delta region, represented by Shenzhen, are relatively concentrated, and sellers in the Yangtze River Delta, Haixi and North China are also very prominent.
Amazon is also increasing the coverage and scale of offline investment activities.
In addition to increasing the number and scale of activities in first- and second-tier cities, it has even expanded to third- and fourth-tier cities.Amazon data shows that in terms of regional distribution, in the first half of this year, the total sales of Chinese sellers in more than 80% of the 35 cities with the highest total sales on Amazon increased by more than 20% year on year.Among them, the cities with the highest growth achieved nearly 60% growth.
“Engineer Dividend” will drive hard technology to go global
Although the cross-border e-commerce track is still developing rapidly, the fierce competition has forced many sellers to ask themselves over and over again: What are the new opportunities in this track?
In fact, vendors in emerging markets still have great potential for growth.In emerging markets, with the exception of Shenzhen sellers, most sellers have a lot of room for improvement in their market penetration. That is why Amazon actively guides sellers to expand their global presence. For example, due to its geographical advantage, Shandong is very close to Japan, so Amazon will focus on exploring development opportunities for Shandong enterprises in Japan and promote the growth rate of Shandong sellers in Japan to lead the country.
On the day of the event, Amazon Brazil announced that it is officially open to Chinese sellers, which to some extent also represents the rapid development of cross-border e-commerce in emerging markets in Latin America.
In addition, Yang Jun, vice president of Amazon China and head of enterprise purchasing in the Asia-Pacific region for Amazon Global Sellings, believes that Chinese sellers will also bring four structural opportunities.”First, as China’s engineer dividend continues to expand, the country’s young labor force population continues to decline, but the labor force of highly educated engineers is increasing, so there will be more and more brands in China that have the hard technology of the ‘engineer dividend’ to go overseas,” Yang Jun said.
In addition, Yang Jun also believes that as domestic brands develop to a certain extent, global expansion will become more common, so more and more Chinese brands and small and medium-sized enterprises will go overseas.
Author: AQI Service as a professional quality control service company in China specialized in providing a complete range of quality inspection and testing and certification services in China & Asia for global importers, buyers, retailers, and sellers.
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