Can Amazon adopt a no-source model? How to do it?

Can Amazon adopt a no-source model? How to do it?

For e-commerce merchants, there is a problem that needs to be solved, that is the supply problem. If we open a store on Taobao, we can do a no-supply model, so can the cross-border e-commerce platform Amazon do a no-supply model?

In fact, Amazon's no-source model is somewhat similar to the store group model of domestic e-commerce. It collects product information (pictures and descriptions) from domestic e-commerce platforms, translates them in batches, and uploads them to Amazon stores for sales. When Amazon stores receive orders, they place orders on domestic e-commerce platforms according to the order information, send them to international logistics transit warehouses, and finally reach foreign consumers. In fact, from the perspective of the entire process, it is a process of selling first and then purchasing. One order is sold and one order is sent, so there is no need to stock up, and the financial pressure is much smaller!

Then some students will ask, what is the difficulty of operating Amazon without source? People in the industry will tell you that 70% of Amazon's business depends on product selection and 30% on operation. It can be seen that product selection is the most important in the entire Amazon operation. As long as you choose the right products, traffic will come naturally, because Amazon is a platform that focuses on products rather than stores. No matter whether your store is a ten-year-old store or a newly opened store, the treatment is the same. As long as your product quality is good and the product listing page is well written, there will be traffic. This is also the most important point for Amazon to maintain the entire operating ecosystem. This method prevents vicious competition among sellers, thereby increasing profits, allowing buyers to buy the best things and sellers to reap the highest profits. This is also the advantage of Amazon.

Every model faces a problem, that is, how about the profit. A model without profit support is empty talk, so how about the profit of Amazon without supply? First of all, let me state a point of view. Most of the models that can tell you that the profit is dozens or even hundreds of times are deceptive. To give a simple example, for example, distribution allows you to pay a few tens of thousands of joining fees and you can make tens of millions a year. The profit is always proportional to the risk. The higher the profit, the greater the risk. The profit point of Amazon without supply lies in the exchange rate difference and information gap.

For example, if you sell a cup for 10 yuan in China and you sell it for 10 pounds on Amazon's UK site, then the gross profit is 10*8-10=70 yuan (the exchange rate is 8). After deducting the costs of international logistics and labor costs, the profit can reach about 40%-60%. Then some people will wonder, are foreigners so stupid? Using 70 yuan to buy something worth 10 yuan is actually an information gap. In China, 10 yuan can buy 10 buns, and in the UK, 10 pounds can only buy 10 buns. It's just the different exchange rates that make our 10 yuan only equivalent to about 1 pound, so it is normal for British people to spend 10 pounds to buy a cup.

Regarding the question raised at the beginning, the above content has already answered it for you. Now you can also operate a no-source model after opening a store on Amazon. After all, this model will become a common way of opening a store. If you are interested, you can give it a try.

Recommended reading:

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