Amazon Has Set Up 13 Operations Centers.
Amazon has set up 13 operations centers in China, and in 1400 cities across the country, users can receive orders on the day or second after placing orders on Amazon.
In China, Amazon has built a fully self running logistics system over the years.
Today, they announced the launch of "Amazon logistics +", opening warehousing and logistics solutions to businesses outside Amazon.
That is to say, Amazon's couriers will not only be able to buy things on Amazon's platform, but will also be included elsewhere.
As the largest electronic business platform in the world, Amazon is much better at doing warehousing and distribution than ordinary couriers.
However, this is not a good thing for Amazon's e-commerce business in China.
It seems to have abandoned the ambition to compete for market share in the Chinese electricity supplier industry and turned into a logistics company providing infrastructure.
Enterprise services can help Amazon to recover the funds invested in those huge warehousing and logistics systems faster. However, the goal of rapidly replicating in China in those days is not going to be mentioned again.
Xue Xiaolin, President of Amazon global logistics, introduced at the press conference that for the needs of Chinese enterprises, the "logistics +" system includes warehousing logistics integration scheme, warehousing operation plan, pportation and distribution plan, cross border logistics service and customized logistics service.
Since 2010, Amazon has introduced FBA (Fulfillment by Amazon) service to China, and the third party Chinese seller on Amazon platform can send the goods to Amazon for sorting and shipping.
This time, "
Logistics +
It is based on the original FBA, extending the scope of services to the Amazon platform.
Over the past ten years, Amazon has built 13 operations centers in China, with a total area of over 50 million square meters. It has built the largest network of operations in addition to the United States.
Even in China, they have done something that has not been done anywhere else in the world: they hire couriers to complete the "last mile" distribution.
When you place an order online, Amazon's management system will arrange the best delivery route according to the average efficiency of the operation center and the shelf life of each product.
Each operation center adopts a unified global management system, dominated by algorithm and prediction.
The three large screen televisions on the control center show in real time the expected workload of the warehouse in the coming period, the efficiency of each worker and the operation of the entire warehouse.
The impact of the workers' own experience and learning ability on warehouse management is minimized.
From the very beginning, Amazon is ready to replicate the success mode of the United States in China: making a big electricity supplier with cheap prices and fast delivery.
However, in China's extremely difficult market, Amazon, which has built up its warehousing and logistics system, has left a huge short board: traffic.
According to statistics of first quarter of AI 2015,
Amazon
China only accounts for 1.1% of the B2C retail market, or even after Dangdang and No. 1 stores.
But traffic is the real important thing for the electricity supplier.
Ever since Ge Daoyuan, Doug Gurr, took office in August last year, China has always been somewhat slow to see what they want to do.
On line, a year's Chinese offshore business has been docking with all products of the US Amazon, but it still hasn't brought much improvement to Amazon China.
Or,
Offshore purchase
The use and promotion of high-quality resources in the US headquarters, Amazon China has not gained much autonomy.
In the case of pnational shopping, logistics has always been the most influential part of user experience. From overseas storage, delivery to domestic declaration, customs clearance, tax payment, and then to the final domestic distribution, every link may delay the time of receiving goods.
And logistics is Amazon's advantage.
The operation center of Wuqing Development Zone in Tianjin is the largest operation center of Amazon in China. The Tianjin operation center has set up two basketball court sized spaces to deal with the "offshore outsourcing" products.
After the goods are packaged and sent from the warehouse of the Amazon, they can only enter the ordinary Amazon commodity delivery process by simply placing the pre matching Chinese Parcel List in the system.
Xue Xiaolin said at the press conference that the average processing time of Amazon's import business today is 6-8 days, the fastest in three working days, while the average export time is about 5 days.
This open logistics solution will undoubtedly help those small and medium sized businesses unable to build cross-border logistics themselves.
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