May 06, 2023
Amazon Cloud Looks for New Opportunities in the Chinese Market
May 24, 2023
At the recently held Amazon Cloud Technology Cross-border E-commerce Summit, Liang Yan, general manager of Amazon Cloud Technology China's Digital Native Division, mentioned the new trend of Chinese companies going overseas:
"Chinese companies are blooming everywhere," 60% of Chinese companies Going overseas have covered more than three regions, and more and more companies have begun to enter blue ocean regions such as the Middle East, South America, and Africa, and have "asymmetric advantages" in these regions.
Cross-border e-commerce has grown against the trend during the epidemic; Chinese enterprises have gone from exporting manufacturing to exporting brands.
Enterprises going overseas have become a hot topic, meaning overseas tax declaration, warehousing logistics, international payment, and other e-commerce "supporting" enterprises must also go overseas.
"We will divide e-commerce customers into three categories: platform type, brand, and service provider." Li Jian, director of the game e-commerce industry of the Digital Native Division of Amazon Cloud Technology China, said.
In cross-border e-commerce, Amazon Cloud's strategy is to "both open a store and build a website." Sellers use the Amazon e-commerce platform as a sales channel, and at the same time, they can also use Amazon Cloud to build a brand-independent website and other cloud services.
It is generally believed that independent websites and Amazon retail are in a competitive relationship, and independent website sellers hope to get rid of the shackles of the platform and build their traffic positions. However, the interviewed management of Amazon Cloud said, "It is not conflict and competition, but complement each other. This is a similar strategy." At present, sellers often deploy independent stations and Amazon channels simultaneously.
In addition, the management also mentioned that Amazon launched the "Buy with Prime" service for the US market this year, which allows Amazon Prime members to shop directly from the online stores of third-party merchants. Amazon provides warehousing logistics and payment services. This is similar to allowing users to use Tmall 88vip members when shopping on WeChat applets, which means the cooperation of the two major competitors. It is reported that Haier has already accessed the service.
In addition to using Amazon Cloud to build an independent website, it highlighted its own AI services, including digital humans and an unreleased AI model, allowing sellers to use AI for efficient marketing.
Amazon Cloud can generate digital human and output API interfaces, adapting to various terminals and third-party platforms.
DHgate.com, a B2B cross-border e-commerce platform, introduced its digital human live broadcast case. Dunhuang.com uses Unity3D to generate digital human images, Amazon Cloud is responsible for ISV services and streaming media control, and ChatGPT is accountable for developing product live broadcasts. On the last point, Amazon is preparing to launch its large model Amazon Bedrock (including the self-developed model Amazon Titan and other third-party basic models), which is expected to replace ChatGPT.
In addition, Amazon Cloud claims its advantages lie in security compliance and data intelligence. Amazon Cloud covers 31 geographic regions, 99 availability zones, and 245 countries and has many years of e-commerce data experience.
"For example, shipping from China (to a foreign country) involves cross-border, which data can be returned, and which data cannot be returned. If the product is not suitable after going out, what should I do if the product is returned? These details involve production, manufacturing, supply chain, Payment, customer service, etc., so a very detailed and complete business plan is required." Liang Yan said that many business audits of Amazon Cloud had passed global certification, which can help customers quickly land business in overseas countries. The company provides services through third-party SaaS partners in terms of precision marketing and cross-border tax declaration, etc., which are not its specialties.
In terms of performance, Amazon's sales in the first fiscal quarter of this year increased by 9% year-on-year to US$127.4 billion, surpassing Wall Street expectations; its profit was US$3.2 billion, nearly 50% higher than analysts' expectations. Among them, Amazon's cloud business is still the engine driving growth, with sales increasing by 15.8% year-on-year, but the growth rate has slowed.
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