At the recently concluded Amazon Global Store Cross-Border Summit held in 2024, we witnessed a significant unveiling by the company’s vice president and the executive president for the Asia-Pacific region, Dai ShufeiThe summit shed light on a well-crafted business strategy for 2025, which revolves around three pivotal pillars: innovation, opportunity expansion, and local empowermentThese strategic themes not only resonate with the current market dynamics but also underscore Amazon's commitment to adapt and thrive amidst evolving consumer behaviors and international competition.

The statistics shared during the summit were nothing short of impressiveOver the past year, the volume of goods sold by Chinese sellers on Amazon’s global platforms surged by more than 20% when compared year on yearParticularly noteworthy is the growth in the number of Chinese sellers generating sales exceeding $1 million and $10 million, which increased by nearly 55% and nearly 60% respectively over the past two years

This growth signifies not just an increase in numbers but also highlights a burgeoning acceptance and reliance on e-commerce by consumers worldwide.

In stark contrast to the strategic shifts undertaken by local e-commerce giants like Taobao and JD.com, which are moving away from a sole focus on competitive pricing, cross-border e-commerce platforms such as Temu have gained remarkable traction globally, primarily due to their aggressive pricing strategiesThe rise of Temu has created a ripple effect, compelling Amazon to reassess its approach and position within the marketAccording to data from SensorTower, by August 2024, Temu had managed to capture 91% of Amazon's user base, with over 60% of respondents in a survey across 84 countries expressing a preference for TemuThis preference was especially pronounced in Europe, where users from 28 countries leaned more towards Temu.

Looking ahead, HSBC anticipates that by 2027, Temu’s Gross Merchandise Volume (GMV) will soar to an astonishing $140 billion, outpacing competitors like Alibaba, SHEIN, and TikTok

• Iron Supply Set to Stabilize Gradually
• NVIDIA to Part Ways with Supermicro
• AI Industry Shift: From Nvidia to Broadcom
• Debt Market Rally: Risks Beneath the Surface
• Driving Bearing Industry Upgrades Through Technology

This projection positions Temu to achieve the fastest growth rate in the cross-border e-commerce segment originating from ChinaIn response to this fierce competition, Amazon, albeit belatedly, has decided to roll out a low-priced marketplace dubbed Amazon HaulThis platform aims to counter the influx of offerings from Chinese e-commerce firms that have successfully captured global market attention.

Amazon Haul, poised at the entry stage of its launch, prices all items at $20 or lower, with the majority of products hovering around the $10 markAdditionally, the platform offers discounts—5% off for orders over $50 and 10% off for orders exceeding $75. However, it is important to note that while the delivery timeline for Amazon Haul ranges between one to two weeks, this is considerably longer than the rapid delivery promised for Amazon Prime membersThis shift indicates a strategic pivot as Amazon seeks to realign itself in a landscape teeming with competitive offerings filled with urgency and quality.

In an interview with various media outlets, including Jiemian News, Dai acknowledged that Amazon Haul is still in its infancy, necessitating ongoing internal learning and adjustments before broader public announcements are made about its features and offerings

Currently, Amazon Haul is only accessible in the United States and operates on an invitation-only basis for its initial batch of sellersThese selected Chinese sellers showcase distinct characteristics: they have previously collaborated with Amazon, possess competitive advantages concerning cost, price, and product variety, and are capable of efficiently managing logistics to Amazon’s operational center in Dongguan.

Dai Shufei also emphasized the varying needs of consumers when it comes to low-priced productsHe stated that customer needs must be analyzed in greater detailA substantial segment of customers appears indifferent towards brand names and delivery speeds, placing a higher value on affordable pricesThis underscores an opportunity for understanding consumer behavior and fulfilling unmet needs within the marketplace.

The current global e-commerce landscape, with its escalating price wars, has rendered small to medium-sized factory sellers as prime targets for platforms like Amazon to vie for

Acknowledging the exceptional maturity of China's industrial belts, where vertical integration of manufacturing and product development has already taken place, Dai pointed out the strong competitive edge of these industrial sectorsHe argued that the dynamic of rapid product innovation serves as the core driving force behind satisfying emerging but inadequately addressed consumer demands.

In light of this backdrop, Amazon is actively developing over 400 industrial belts nationwide, aiming to enhance the quality of the cross-border supply chain and fast-track product innovationThe forward-looking projection suggests that by 2027, the “Industrial Belt Accelerator” program will envelop over 150 Chinese industrial belts, assisting thousands of factories and brands in launching products on Amazon.

Additionally, Amazon has proposed a strategic focus on product category differentiation to discover products that harbor significant demand yet suffer from insufficient supply within the current market landscape

As part of this focus, the company is slated to unveil an “Unmet Demand Insights” feature in 2025, supplementing its existing product selection tools.

Data released by Amazon indicates that from early 2024 to October 31, there has been a nearly 30% rise in the number of new products listed by Chinese sellers utilizing Fulfillment by Amazon (FBA). Furthermore, over 35% of sales are attributed to products introduced within the last 12 months, highlighting a robust growth trajectory for Chinese brand sellers on Amazon’s emergent platforms.

Moreover, Amazon has rolled out a suite of initiatives, including influencer programs and content creator initiatives, targeting consumer engagement across various international social media platformsNotably, the upgrade to the Buy with Prime initiative aims to bolster sellers’ capabilities in establishing and expanding their businesses outside Amazon, fostering multi-channel growth

A series of AI-driven e-commerce tools have also been introduced, featuring instant messaging solutions, intelligent shipping time prediction, and automated customs classification functionalities to further enhance the seller experience.

As the global trend toward online business procurement escalates, Amazon Business has emerged as one of the fastest-growing segments on the platform, encouraging a growing number of Chinese sellers to embrace both B2B (business-to-business) and B2C (business-to-consumer) opportunities as a cornerstone of their expansion strategies.

During the course of the summit, Amazon announced the forthcoming opening of its Irish site to Chinese sellers in 2025. This marks the tenth European site accessible to Chinese sellers, thereby enabling them to conduct business across a total of 20 international marketplaces within Amazon’s extensive global network.

The company also introduced its smart supply chain management services targeting Chinese sellers, providing comprehensive end-to-end cross-border supply chain solutions