Amazon Electricity Supplier Defeated China: Positioning Lost 10 Years, 5 Years Of Hard Work Is Too Late

After entering China 15 years ago, Amazon, the biggest business platform in the United States, was still "acclimatized".

Amazon China issued a statement on April 18th that the company will stop providing seller services to the third party sellers on Amazon's website in July 18, 2019.

Just a few days ago, Amazon CEO Geoff Bezos warned the annual shareholders' letter that because of the size of the Amazon, shareholders could expect that when the company tried new initiatives, it would cause "billions of dollars of losses".

But compared to Amazon's failure on Fire smartphones, the Amazon's Chinese market business has been more like a chronic suicide these years.

In 2014, Ge Tao Yuan took office as president of Amazon China.

After Ge Daoyuan took office, Amazon will turn the focus of its business in China into internationalization.

Since then, the external publicity of Amazon's China electricity business has basically emphasized the cross-border e-commerce business.

5 years later, Ali and Jingdong still occupy an absolute position in the Chinese electricity supplier market. NetEase has taken the koala and strict selection to create a new main business outside the game, while the social networking business has set up a record of IPO for 3 years.

Chinese electricity providers have made major adjustments

At 12 o'clock in April 18th, Amazon China announced that the company will stop providing seller services to the third party sellers on Amazon's website in July 18, 2019.

This means that consumers will no longer be able to buy goods from third party sellers through Amazon China, but they can still buy overseas products through Amazon.

Besides, domestic sellers will not be able to sell goods to consumers in China through Amazon, but they can still sell overseas through overseas purchases.

In this regard, Amazon has promised to work closely with all sellers to complete the subsequent handover.

At the same time, if the seller affected by this adjustment wants to continue to cooperate with Amazon and expand the global market, he can contact Amazon's global store team to get help.

Amazon stressed that it has always had a long-term commitment to the Chinese market, but now it focuses on Amazon offshore outsourcing, Amazon global stores, Kindle and Amazon cloud computing.

Before that, a personnel adjustment within Amazon China has begun.

The Chinese R & D team, which belongs to the electricity supplier, has been informed by the meeting that the whole team will be retained, but there is little business to do at the moment.

"It's equivalent to finding a way out for time."

Amazon insiders tell the first financial reporter.

In fact, not only is China's R & D team, but many employees of China's e-commerce business will also face personnel adjustment, and many employees of Amazon's electricity supplier have begun to look for jobs.

However, people close to Amazon have revealed that Amazon has been adjusting the electricity business in the Chinese market for a long time, so the electricity business will not face too much personnel turbulence.

In addition, there are reports that Amazon vice president of the world, Zhang Wenyi, President of Amazon China will leave, but Amazon has not yet responded to this.

Late pformation

At present, there are ten taxonomy in Amazon China's official APP.

The two categories of boutique supermarkets and books will be affected by the closure of the Chinese market.

Kindle stores, overseas purchases, and the United States, Britain, Germany, Japan, direct mail and other businesses will not be affected.

In 2014, after setting the international brand as the main direction and direction in the future, cross-border electricity suppliers became the high-frequency words of Amazon in China.

"We exist in China in order to do two things, one is to make better use of this opportunity to bring products to China's customers all over the world, and the two is to allow big and small companies in China to have their products and services available to other parts of the world."

Ge Daoyuan, former president of Amazon China, interviewed the first finance company in 2015 and made the above positioning for Amazon's e-commerce business in China.

Ge Daoyuan is the main executor of Amazon China's electricity supplier business pformation.

In 2014, on the first day of his new president of Amazon China, he threw out such a question to many executives of Amazon China, "why do consumers want to shop in Amazon China?"

Among the many reasons listed above, the first is Amazon's international background.

Since then, international brands and offshore projects have become the most important priority for Amazon China.

At the same time, Amazon China has begun to show its more radical aspect.

The most direct manifestation is Amazon's China launched the "offshore purchase flash shopping" business.

According to Amazon's description, the flash purchase mode means that Chinese consumers' overseas exploding commodities will be pre stocked to bonded warehouses by Amazon. After placing orders, all orders can be cleared quickly, enjoying an average of 3 days of logistics distribution without difference with local shopping, and can be served even on the same day.

In addition, Amazon also unified Amazon China and Amazon's "offshore purchase" login account, providing shopping cart functions and realizing more localized payment methods.

Ge Daoyuan still clearly remembered that when he first entered the office, he was troubled by the Amazon China team. The decision-making process was too long, and the whole team was always waiting to be told what to do.

"Be sure to act decisively.

Amazon is not the same as the foreign company I worked for before. There will be no headquarters telling you what to do first.

China's strategy and planning are defined and implemented by Amazon's own team, and the Chinese team decides what resources to apply to headquarters.

To Ge Daoyuan's satisfaction, in the past time, Amazon has made many decisions quickly and independently, even if not all decisions are correct.

As the successor of Ge Dao Yuan, when Zhang Wenyi took office, his attitude had changed from "radical" to "at all costs".

In 2016, Zhang Wenyi publicly declared that he should pay attention to the development of cross-border electricity business on the platform of globalization at all costs.

But this is all too late for the Amazon China electricity supplier business to identify itself in 2014.

In recent years, Amazon's market share has been rapidly lost.

According to AI's global data, Alibaba and Jingdong have occupied more than 80% of China's electricity supplier market.

"In the data we monitor, Amazon accounts for less than 1% of China's FMCG market," Yu Jian said.

Now the brand marketing resources wisdom is placed in the top two or three, Amazon China has no special advantage.

Yu Jian pointed out that Amazon's advantage lies in its ability to provide abundant foreign Amazon products, but many Chinese brands now have overseas flagship stores, most of which are rivals such as Tmall and Jingdong, and NetEase koala.

There were also rumors that Amazon's cross-border business will merge with NetEase koala.

Amazon and NetEase also declined to comment.

"China's electricity business is only a small part of Amazon."

Yu Jian told the first financial reporter, "Amazon is generally weak in the Asian market, and the only strong performance is the Japanese market."

In view of the future development of Amazon cross-border e-commerce, Yu Jian believes that Amazon's cross-border e-commerce reputation is good, and Chinese consumers have a strong demand for Amazon's global website products, so Amazon is likely to retain this part of the business.