Opportunities and Challenges of Amazon Cross-border E-Commerce Development in the Context of the Epidemic

In 2020-2021, the new crown epidemic broke out one after another around the world, and in order to prevent the spread of the epidemic, many governments have issued home quarantine measures. This outbreak suppressed offline consumer demand in the global market, but at the same time also prompted further release of online consumer demand, making online shopping the mainstream shopping method and ushering in a new development opportunity for cross-border e-commerce.

At the same time, affected by the global financial crisis, many countries in the entry and exit, logistics, customs supervision, etc. are tightening, cross-border e-commerce is facing difficulties in capital turnover, “difficult to sell” situation, in the release of huge development potential, but also facing the test of industry difficulties.

Half is flame, half is seawater. Unlike the platform ushered in a high moment, small and medium-sized sellers on Amazon are floating in the storm, sales plummeted, order cancellation, lack of logistics …… one problem after another, and worse, Amazon has limited the flow of non-essential goods, resulting in the survival of Amazon sellers is increasingly difficult, 2020-2021 is Amazon small and medium-sized sellers the most tormented two years.

Opportunities and Challenges of Amazon Cross-border E-Commerce Development in the Context of the Epidemic

Based on this background, Amazon officials launched a corresponding policy to support sellers, and give 1 billion dollars in dividend subsidies, will be promoted through a strategic approach to improve product and brand exposure internationally, in order to enhance product sales and help small and medium-sized sellers out of the epidemic crisis. At the same time, in order to attract consumers and improve consumer loyalty, Amazon officials will also launch a new consumer profit-sharing model, the provisions of the platform merchants need to sell their products or services part of the profits to consumers, this initiative will not only bring benefits to consumers, but also facilitate the spread of word-of-mouth to achieve the effect of user fission multiplier.

In this model, the consumer’s purchase behavior is no longer a simple consumption, but at the same time becomes a kind of consumer who can promote the merchant’s products. Consumers are both promoters, and the money they spend has been transformed into capital, which means that the era when only “brands”-“agents”-“advertisers”-“store operators” made money is now history. The era of “store operators” to make money will become history, consumers only need to change their thinking, do the integration of resources, find more preferential channels, as the promoter of consumer groups, you can participate in the distribution of profits from goods.

Opportunities and Challenges of Amazon Cross-border E-Commerce Development in the Context of the Epidemic

Since its outbreak, the New Crown epidemic has had a non-negligible impact on the development of the cross-border e-commerce industry, while also bringing new opportunities to the industry’s development. The continuous fermentation of the New Crown epidemic has given rise to a series of new business models, promoted the reshuffling of the cross-border e-commerce industry, improved the efficiency of the utilization of resources in all aspects and driven a new round of economic development.

Amazon cross-border e-commerce, as an innovative business model that provides consumers with more category choices and better prices, is naturally favored by consumers for its social effects and value in the post-epidemic era. The business value created by Amazon’s new consumer profit-sharing model not only greatly enhances the user experience, but also undoubtedly has tremendous demonstration significance for the entire industry in terms of innovation and leadership.

Danger and opportunity always go hand in hand. The new crown epidemic has not only driven the development of the online consumer market, but also accelerated the digitalization process of global foreign trade enterprises, and the value of this innovative idea of Amazon will be further enhanced and reflected in the future, which will be the next generation of the public’s consumption method, and Amazon cross-border e-commerce will also become the new normal of the future industry.