Amazon’s operating strategy during the Virus

1 The impact one Amazon
For FBA sellers, they have sufficient inventory, which is the most benefited seller group in this virus, they are basically not affected by this virus 

Self-delivery sellers have been greatly affected by the virus. Especially sellers in the shop-shopping mode cannot deliver in time, so start the holiday mode decisively.

In the supply chain, many factories have postponed the resumption of work, and most factories will start operations in March, which will lead to untimely product supply, but many sellers are now anxious to prepare for the annual prime day, which may be inconvenient .

Logistics, with the gradual control of the virus, logistics and traffic are gradually returning to work, all shipping schedules and ports are also operating normally, but air transport flights are reduced, short-term logistics costs will definitely rise, here, solemnly rumor, the United States does not prohibit Receipt and delivery. Therefore, as long as it can be sent to the United States, FBA warehouses can be received normally.

2. What can we do during the virus 

1. Eliminate inventory. During the virus , the products in good-selling stores will face out of stock, but the indicators of their own slow-moving products will soon rise, which will help us clear our inventory. Sellers can increase the exposure and clicks of slow-moving products through advertising. 

2. Hot products. Out of stock is a problem that many sellers will face during this time. In order to prevent out of stock, you can increase prices in stages.

3. Selection. This time is a great time for everyone to meditate. For example, looking at the current situation, the concept of health is becoming more and more popular. Therefore, health categories such as fitness equipment may be a good idea for product selection. 

4. Order with the factory in advance. Before the factory starts, it is necessary to make an appointment with the factory in advance for product production scheduling, so that you can also catch up with prime day.

Impact of Coronavirus on International Logistics

Many industries have been affected since the coronavirus swept the globe, especially cross-border e-commerce. Now let’s talk about how cross-border e-commerce is affected.

The first is the platform. Affected by this epidemic, all cross-border e-commerce platforms will be affected to varying degrees. This is reflected in the difficulties of small and medium-sized sellers, slow logistics and delivery times, and foreign consumers’ short-term trust in Chinese goods. Based on various factors, although Amazon Global Open Store, eBay, AliExpress, Wish and other cross-border e-commerce platforms have issued policies and measures, they will inevitably affect the transaction value and business of cross-border e-commerce. Business platform. Revenue and other performance, and even operating results in the first half.

The second is the supply chain. In the short term, cross-border e-commerce goods will be out of stock.Most small and medium-sized cross-border e-commerce sellers have insufficient stocking, and there will be no stock when the products are sold out.

The third is logistics. China’s logistics has not yet fully recovered, and procurement is completely inoperable. In international logistics, the cost of small package express will increase greatly due to the reduction of flights. We must consider shipping, but the delivery time will be extended, and the consumer experience is not good. At present, many countries have completely stopped flights to China, and some countries have reduced flights to China. This will have a greater impact on logistics to countries such as Africa, especially for enterprises that use postal parcels as their main logistics method.

How cross-border e-commerce works

1. The overseas supplier first sends the goods to the logistics distribution center of the cross-border e-commerce company in the country where the product is produced, and the distribution center performs stock preparation and warehousing management. After the customer has successfully placed an order, the logistics and distribution centepicks,ships the product according to the order requirements, and delivers the “single” order as a single package to the international express company to the customer.

2.First, the overseas supplier sends the goods to the cross-border e-commerce company’s logistics center in the country, and the logistics center performs stock preparation and warehousing management: After receiving the user order, the logistics center picks and packs according to the requirements of each order and logistics company will deliver these parcels in batches to the logistics distribution of the e-commerce company in the overseas transit country, the transit d

3.The overseas supplier sends the goods to the cross-border e-commerce enterprise’s logistics distribution center located in the country, and the distribution center performs stock preparation and warehousing management; after receiving the customer order, the logistics center performs single order picking, packaging and shipment , to form a single package of a single order, and then integrate the packages with the same destination according to the delivery address, and the international logistics company will ship these packages to the re reassembles the entire batch of received goods into the original single package, and then sends these single packages to the buyer through the local logistics system.

DISTRIBUTION NETWORK ZARA

T ao bao logistics model

Taobao.com is the largest online retail and business district in the Asia-Pacific region. It was founded by Alibaba Group in May 2003. Taobao is a popular online shopping retail platform in China, with nearly 500 million registered users, more than 60 million regular visitors every day, and more than 800 million online products per day.

Taobao uses a third-party logistics model.

A third-party logistics enterprise is a form of logistics that undertakes corporate logistics activities. 3PL neither belongs to the first party nor the second party, but provides its specialized logistics services through cooperation with the first party or the second party. It does not own goods, does not participate in the purchase and sale of goods, but To provide customers with contract-constrained, alliance-based, serialized, personalized, information-based logistics agency services.

With the development of information technology and the trend of economic globalization, more and more products are circulated, produced, sold, and consumed worldwide, and logistics activities are becoming increasingly large and complex. The organization and operation methods of first and second party logistics have been It cannot fully meet the needssociety.

At the same time, in order to participate in global competition, companies must establish core competitiveness, strengthen supply chain management, reduce logistics costs, and outsource logistics activities that are not core business.