Bezos Is Accelerating The Global Logistics Layout Against Alibaba.

If you want to get the favor of Wall Street again, Amazon It needs to rely on its more than 100 logistics centers, where there are high shelves and yellow commodity barrels, just like a huge warehouse in San Bernardino, California, which occupies 110 thousand square meters. There are various kinds of goods stored in Amazon, including mobile phone accessories manufacturers, Tech Armor, and so on. Tech Armor has already used Amazon's logistics network to sell products in Germany, Spain, Italy, Japan and the United Kingdom. A small company only needs to pay for Amazon's logistics services, so that products can be sent to all parts of the world quickly.

For small companies like Tech Armor, Amazon The influence of logistics network is directly visible. Since joining the company in early May 2012, the company has shipped nearly 5 million shipments through Amazon logistics, with an annual growth rate of 700% in 2013. Tech Armor founder Eric (Eric Tong) said: "from a logistics point of view, Amazon is a machine. During the holiday shopping season, we need not worry. "

Sellers who choose to join Amazon's logistics network feel like signing Faustian bargain, because Amazon has the reputation of weakening the third party sellers by selling products themselves. On the bright side, the seller can enjoy the Amazon Prime service after paying the Amazon store. This membership system can provide free shipping Express service to the old customers who frequently use Amazon services.

Citigroup estimates that Amazon 2 Of the $013 revenue in the past 74 billion 500 million years, $4 billion 400 million came from Amazon logistics. This will continue to increase as about 2000000 third party businesses join the Amazon Prime service. Tom Taylor, vice president of Amazon's seller's service, said that last year, Amazon's Taylor accounts jumped 65%.

Michael Pachet Michael Pachter, a well-known investment planning company, said that after Amazon logistics adopted the membership system, the third party sellers realized the tremendous influence of Amazon on "loyal buyers", especially the buyers of Amazon Prime services, Wedbush Securities. Pachter estimates that Amazon has more than 30 million members of its Amazon Prime service. In the past 12 months ending September, the number of international contracted customers of Amazon's logistics services has doubled. This has a cost, and its net shipment losses in the third quarter increased to $972 million, an increase of 20% over 2013.

Taylor said that this loss will decrease over time. Amazon's global logistics network is on the right track. Amazon's 40% net sales come from abroad, and recently announced 5 new logistics centers in India. Amazon is building large warehouses in the Shanghai free trade area. The warehouse is not far from Alibaba's Hangzhou headquarters. Alibaba's single day revenue in November 11th was up to $9 billion 300 million, which reminded Amazon that it could no longer dominate the retail sector.

With the launch of Alibaba's 11 Main e-commerce website in the US, investments like Amazon Prime services ShopRunner, such as Tech Armor, E Revoluation Ventures and other companies, will have more options for the sale of product channels. E Revoluation Ventures produces clothing and toys, which completely outsource logistics to Amazon, which is said to allow the company to expand rapidly. This year, E Revoluation Ventures expects revenues to reach US $70 million, compared with us $3 million in 2009. Stu Einseman, the founder of the company, said: "our reason is very simple: the so-called" know the times "is a hero, if you beat the other side, simply join the other side." (Stu Ainsman)