Is there a tree whose performance has fallen by more than 700 million, Amazon’s proprietary and third-party business or split?

In the mighty wave of titles in Amazon, there are trees sold at a hundred million level, and the losses are relatively severe. There are about 340 closed or frozen sites. It is known that the frozen funds are as high as about 130 million yuan. In the title announcement, it is predicted that the revenue will fall by about 40% ~ 60% in the first half of the year.
In the first half of the year, the revenue of a tree decreased by 51.12%, and the net profit plunged by 742 million
Amz123 learned that recently, Tianze information, the parent company of a tree, released the financial report for the first half of 2021. According to the financial report, affected by the change of Amazon platform policy environment and the sharp contraction of independent station business, the operating revenue of a tree in the first half of the year was 1.092 billion, a year-on-year decrease of 51.12%, and the net profit plunged by 742 million.
During the reporting period, the performance of a tree on third-party platforms other than shopee fell sharply from January to June 2021, with an overall decline of 51.12%.
Among them, the sales revenue of Amazon platform decreased by 57.15% year-on-year, mainly due to:
1. During the reporting period, the operation rules of Amazon platform tended to be strict, and the control intensity of stores increased significantly;
2. Due to suspected violation of the operation rules of Amazon platform, some sales sites of a tree were closed and store funds were frozen, which objectively affected the business development;
3. Affected by the epidemic, the sales of epidemic prevention materials of a tree on Amazon platform increased significantly in the first half of the year, while the overseas epidemic prevention situation in the current period has become more routine, resulting in a larger performance comparison base in the current period.
Amz123 learned that in the first half of the year, a tree strategic deployment focused on Amazon. However, due to the tightening of platform policies, the transformation of high-quality products did not meet expectations. In addition, the logistics cost has increased significantly. In order to accelerate the return of funds, some enterprises quickly clear their inventory by means of price reduction and promotion, resulting in a more intense competitive environment for third-party platforms.
While the operation of the third-party platform frequently encountered difficulties, the independent station business of Youshu also suffered setbacks, and the independent station business shrank more than expected. Therefore, the financial report indicates that Youshu is not fully qualified to continue to carry out the independent station business.
Despite the serious performance Waterloo, Tianze information said it was still optimistic about the long-term development of youkeshu’s cross-border e-commerce export business. While firmly implementing Amazon’s platform transformation strategy, Youshu will continue to fully develop the cross-border e-commerce business of other platforms and reduce the risk of performance decline.
From the performance report of a tree falling like a cliff, Amazon’s increasingly stringent regulatory policies had a great impact on the pattern of cross-border industries in the first half of the year. However, while sanctioning sellers, Amazon is also being restrained by various forces. To this end, Amazon even used both hard and soft to launch “help” to sellers.
Will the one-stop hybrid business be split? Amazon again seeks help from sellers!
Amz123 learned that in June this year, the US Congress passed a series of antitrust bills aimed at regulating Amazon and other large technology companies. Facing the antitrust pressure from all parties, Amazon contacted some sellers to warn that once the bill is successfully implemented, it will have a significant negative impact on the seller’s business.
Recently, many sellers received news pushed by Amazon. Amazon said that last week, the U.S. Congress formulated relevant regulations for large technology companies including Amazon. Once the bill is implemented, it will endanger the operation and service capacity of Amazon mall, It may even cause hundreds of thousands of American small and medium-sized enterprises to lose the opportunity to contact customers and use Amazon services.
Therefore, Amazon launched a website to seek the support of sellers. Sellers who register the website can timely obtain updates of relevant legislative messages that may affect the seller’s business. In addition, sellers will also have the opportunity to communicate directly with elected officials on these bills through the website.
It is reported that the draft Antitrust Act stipulates that Amazon needs to separate its proprietary business from the market of third-party sellers, that is, allow the sales performance of independent sellers on Amazon to increase from less than 3% of Amazon’s sales to more than half. One of the objectives of the bill is to crush one-stop hybrid services and unify first-party and third-party businesses in the same position.
In this regard, many sellers are worried that they can no longer operate business on Amazon platform as a third-party seller, but some sellers believe that the legislation of the US Congress will not endanger third-party sellers. The main purpose of the bill is to separate Amazon’s business, and third-party sellers do not need to access Amazon’s AWS services.
More frankly, Amazon has been dominant in the third-party market for many years. However, while enjoying the benefits of 60% brought by third-party sellers, Amazon has not announced fair and transparent regulatory rules to the outside world, and various charging standards and control policies need to be discussed. Therefore, the implementation of the act is conducive to restricting Amazon’s power and ensuring the rights and interests of third-party sellers.
From Amazon’s successive actions to seek seller assistance, if this series of antitrust laws are officially implemented, it is likely to have a great impact on the operation of Amazon platform. However, there is no definite answer whether it will endanger the normal sales of sellers, as Amazon said.

Post time: Aug-30-2021