Amazon, famous for its “consumer first” approach and vast product selection, is at it again. Amazon has recently dominated the e-commerce news with two major announcements — a store on Chinese e-commerce giant Alibaba and a new online store equipped with high-tech, innovative gadgets.
Amazon already exists in China, but the Tmall launch will provide Chinese consumers with a choice of where to access Amazon products. And Amazon Exclusives — its new product mix — increases the marketplace’s already abundant catalog. Is it a coincidence that these additions to the Amazon family sync up with the company’s core values?
Let’s explore both announcements.
Amazon’s Tmall store will offer more than 1,000 imported products, including items sold exclusively in China, like clothing brand Panama Jack. Product categories currently listed include food, beverages, toys, kitchenware and women’s shoes. During its initial soft launch, Amazon will also offer free shipping and discounts on certain products.
While news of Amazon’s venture onto one of its biggest competitors in China is all the rage, there are a number of details that suggest that this unorthodox strategy could work in Amazon’s favor:
- Retailers listing on Tmall must organize the storing and shipping of their products, which is often an immediate difficulty for international sellers. Because of its local marketplace in China, Amazon.cn, Amazon has an already-established infrastructure in the country. With a network of warehouses and pickup locations — in addition to the well-known same-day and next-day delivery options — Amazon won’t need to invest heavily to expand its product availability in China.
- There’s now greater demand for overseas goods, with many younger Chinese consumers fascinated with Western brand names. Amazon is poised to capitalize on this trend with an offering that already includes Blue Diamond almonds, California wine and brands such as Lego and Crayola.
- Considering the huge volume of shoppers on Tmall, listing on the marketplace will no doubt boost Amazon’s exposure in the region. With Amazon getting its brand in front of more consumers, Amazon.cn may come to see a rise in traffic as well as gain access to a massive pool of previously untapped customers.
The Amazon Exclusives store sells a variety of innovative products from up-and-coming brands, such as those featured on the TV show “Shark Tank.” In fact, many of the products in the Amazon Exclusives store have won innovation awards from industry associations.
The new store not only gives Amazon shoppers early access to hot items and a way to discover new products, but also helps rising-star brands gain exposure.
Products in the Amazon Exclusives store are available only on Amazon or directly from the brand’s website or its physical stores. Items are fulfilled by Amazon, which means they’re eligible for free two-day shipping for Prime members.
Blog post by Jordan Nowlin, social media and blog manager, ChannelAdvisor