Amazon's own sales are shrinking! Third-party sellers are going crazy

Recently, an overseas data agency released the statistical results of Amazon’s Prime Day this year. The data showed that the total sales of this membership day has reached 11.19 billion US dollars!

The percentage of this growth rate (7.6%) is not worth comparing with previous years. It is far lower than last year's (45%), and even only about one-tenth of the member day growth rate (70.8%) the year before. Analyzing the reasons, Amazon's expansion speed has been slowing down since 2019. If there had been no epidemic, it would definitely not have achieved a growth rate of 45% in 2020. If sales wanted to exceed 10 billion, it would have to be at least this year. As a result, the epidemic added fuel to the fire, greatly increasing the share of online shopping, and Amazon reaped all the benefits, which led to such a growth rate in 2020.

After last year's sudden jump, this year's Prime Day is actually a bit awkward, because the opportunities brought by the epidemic will not come again, and it is rare for Amazon to maintain positive growth on the basis of last year. It is equivalent to that we placed a lot of orders during the big promotion festival, and after the big promotion ended, the order volume remained stable or even increased slightly. With this description, everyone should know that although the increase in this year's Prime Day is not large, it is actually quite good.

The growth rate of third-party sellers this year is also very fast. Compared with last year, the total sales of sellers reached 4.028 billion, an increase of more than 15%. The sales of Amazon's own products reached 7.161 billion, an increase of about 5.3%. Not only is the growth of self-operated business slowing down, but its share in Amazon's total sales is also declining year by year.

On the eve of this year's Member Day, many third-party top sellers were rectified and their products were removed from the shelves, but the sales growth of third-party sellers did not decrease at all. Other top sellers and small and medium-sized sellers took over the market vacuum and also reduced the share of self-operated sellers by 2 percentage points, which is really rare. Of course, it also indirectly shows that the competition among sellers this year is fierce. When someone vacates, someone else immediately fills it . This is why there are all kinds of low-price involutions this year, and all kinds of products and sellers that come out for charity at super low prices are everywhere.

This Membership Day is also called Amazon's "10 billion subsidy event" by talented sellers. It is us sellers paying real money to subsidize customers on the other side of the ocean.

There’s a huge discount at the beginning. These days you’d be embarrassed to say you’re having a promotion if the discount isn’t more than 50%.

There are even sellers who take charity to the extreme. Not only do they give you the products for free, they also give you some money. This is much more conscientious than the US government, as they give you both supplies and money.

There have been cases like this in previous years, but they were rare. However, during this year's Member Day, super low-price philanthropists have sprung up everywhere, and they can be found in all categories. They just want to take advantage of the big promotion to sell at low prices, so that they can outlast their competitors and monopolize the market.

Most sellers who have switched from Taobao and Pinduoduo use this tactic, but they don’t know that Amazon’s Day One strategy is destined to never allow a few sellers to dominate the market, and will always give new products some opportunities. This strategy will prevent a vicious price war from waiting for the day when the seller can raise prices and make money by outlasting the competition.

We must realize that in Amazon, price wars and blind pursuit of low prices and volume will only narrow the market. No one comes to Amazon to do charity. If you want to make profits in the future, you must master the high-profit strategy.

Moreover, the price increase is not only for making money for ourselves, but also for a better business environment, so that we can gain an advantage in the trade war with the United States. Seeing this, some sellers may not understand what the relationship is between our e-commerce sellers' refusal to offer low prices and the exchange rate and trade war. I have prepared some information and will talk to you in detail in the official account tomorrow.