DTC brand traffic is "intercepted" by Amazon! Is it difficult fo-ESG跨境

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amz123 news. Although Amazon has an unparalleled advantage in passenger traffic, accounting for almost 40% of the global e-commerce market, its non-public treatment of third-party brand sellers and the squeeze of its own brands have made many brand sellers turn their attention to other channels, such as independent stations. At the same time, after experiencing the wave of titles and the compression of storage capacity, independent stations have become a life-saving straw for more and more Amazon sellers.

however, research shows that brands stand alone in terms of passenger flow and face huge competition from Amazon. The high transportation cost makes them at a disadvantage in commodity prices. Many consumers who shop on DTC brand websites usually compare prices on Amazon, and Amazon's price advantage will make consumers choose to shop on Amazon rather than brand websites

cahoot conducted a study in July 2021 to compare the price and delivery speed of Shopify's top 50 brands with Amazon. Found that in the Amazon brand independent station, 49% of the brands in Amazon's price is lower than that provided by its website, and the transportation speed is faster. Almost no brand website can match Amazon in price and speed

the popularity of Shopify has accelerated the rise of brand independent stations. DTC brand website can customize the brand experience, display products more flexibly, and the sales of brand website do not need Commission. According to ChannelAdvisor, 53% of consumers start searching for products on Amazon. Therefore, buyers are likely to compare between brand websites and Amazon

in addition, 23 brand websites (79%) offer paid express transportation options, ranging from 1 to 3 working days, but their average price is $27.39, and there is no guarantee that they are faster than Amazon. There are also 6 brands (21%) with free delivery discounts that meet Amazon's delivery commitments, but the total price has never been lower than Amazon

it can be seen that most consumers will still choose to shop in Amazon instead of DTC brand website. To compete with Amazon means that the brand must solve the problem of high transportation costs

brands cannot keep up because fast transportation means expensive freight for them. Because transportation is an important part of transaction costs, they simply can't do without eating too much profits

the good news is that there are some ways to solve this problem. For example, locating the distribution site close to the buyer enables the brand to minimize transportation costs while ensuring rapid delivery. But setting up a distribution station will occupy a lot of money, and the risk is great. If the seller chooses an unsatisfactory location, they will be stuck here for several years

in addition, brand sellers can also cooperate with third-party logistics carriers to use P2P logistics networks. However, P2P relies on many different suppliers to provide a common transportation service. This dependence requires P2P to focus on doing several things well. Therefore, high-quality transportation services will be difficult to obtain from P2P at low cost

Xiao Bian Xiao Zhu / amz123

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