Amazon's profitability heavily relies on its strong performance in the US market. The US market contributes over 70% of its revenue and, with a significant Customer Lifetime Value advantage, is a key driver of Amazon's profit growth. The US market provides a stable cash flow, supporting its technology research and development, logistics construction, and global expansion, creating a virtuous cycle that solidifies its global e-commerce leadership.
Amazon's fall Prime sales reached $5.7 billion, 76% of Prime Day's revenue, proving successful despite competition from Black Friday and Cyber Monday. This initiative aimed to test Prime member spending power, preemptively capture sales, and clear inventory. Facing warnings of a potentially weak year-end peak season, retailers are promoting early to maintain sales volume. Sellers should focus on refined operations, diverse product selection, reliable logistics, and data-driven strategies to navigate the competitive market.
Tan Son Nhat International Airport in Ho Chi Minh City is the largest airport in Vietnam, located 7 kilometers north of the city. Established in the 1930s and transformed from a military base, it currently handles about 25 million passengers annually. With the increase in international flights, a new international terminal was added in 2007 to enhance service capacity, connecting major regions across the globe.
Amazon's warehouse adjustments are drawing attention, requiring sellers to closely monitor official announcements and adjust their strategies promptly. Overseas warehouses, as a flexible and efficient logistics solution, can help sellers avoid logistics challenges, flexibly allocate inventory, improve customer experience, and expand markets. This enables effective response to challenges and success during peak seasons. Sellers should consider overseas warehousing to mitigate risks associated with FBA changes and maintain a competitive edge in the cross-border e-commerce landscape.
Data from Amazon's Prime Early Access Sale indicates a diversion of some Black Friday and Cyber Monday demand, leading to a decrease in average order value. Consumer sentiment suggests a wait-and-see approach. Amazon's own products performed strongly. Third-party sellers need to adapt by employing strategies such as differentiated competition, refined operations, and diversified channels to navigate the evolving market landscape. The report highlights the need for sellers to be proactive and responsive to changing consumer behaviors during major sales events.
The Shanghai COVID-19 outbreak severely impacted cross-border logistics, exacerbating delays due to port congestion, courier service disruptions, and infected truck drivers. This increases delivery time risks. Sellers should monitor listing performance and return rates closely. To proactively address these challenges, optimizing operations and adjusting inventory strategies are crucial. By adapting and innovating, sellers can navigate the crisis and potentially seize new opportunities in the market.
