Is Amazon cross-border e-commerce good? Pros and cons analysis

Amazon, AliExpress, and Shopee are the most famous platforms in the cross-border e-commerce industry, and they also have the most merchants. Almost every merchant will do homework on the platform before settling in. So is Amazon cross-border e-commerce good?

1. Advantages

1. Face large-scale consumers directly

Many people shop on Amazon. As of January 2017, Amazon Business had 400,000 customers. According to a BloomReach survey, more consumers are starting to search for products directly on Amazon instead of Google. Consumers are happy with Amazon. If you already sell products on Amazon, you can also sell them on Amazon Business.

2. The platform has powerful B2B services

Amazon is said to spend more than $13 billion on research and development each year. The platform provides a very good user experience, which helps stimulate sales. Amazon Business provides B2B sellers with a variety of professional services, including quantity discounts, business quotations, procurement software integration, and tax-free procurement.

3. Streamline the order fulfillment process

If the seller chooses FBA, Amazon will help you deliver the order. The seller only needs to send the product to the Amazon warehouse, and Amazon will be responsible for the subsequent sorting, packaging and delivery process. In addition, Amazon also helps FBA sellers provide relevant customer service, such as refunds and returns.

4. Highlight the differences

If you are certified as a small business, or if your business owner is a woman, minority or veteran, you can put this information into your seller profile. This allows business buyers to re-segment their search results, for example, to search for products from women-owned businesses or small business products.

2. Disadvantages

1. You need to give up some profits

Depending on the product category, sellers are required to pay a 6%-15% final transaction fee (except for some products). In addition, there are FBA fees.

2. Sellers exist as a whole

It is difficult to establish personal connections with buyers or differentiate yourself from other competitors. On the Amazon Business platform, buyers can easily search for the lowest price supplier and then purchase products from them.

3. Limited communication with buyers

Amazon restricts the way sellers communicate with customers and also regulates the information contained in the packages sent to buyers. Amazon considers this to be its customers, not the sellers. Therefore, it is difficult for customers to know your brand name and establish more connections.

4. Data and Management

Uploading product information to Amazon is very time-consuming. Each product category has its own regulations. The way product information is organized greatly affects the product's exposure and sales rate.

In short, the advantages and disadvantages of doing business on Amazon's cross-border e-commerce platform have been introduced in the article. The Amazon platform is highly competitive, some people make money, and some lose money. So it is up to the merchants to distinguish for themselves.