This year, Amazon’s stock price is frightening. There was a situation where the market value evaporated by 160 billion in one night, and 2022 is about to pass, and Amazon’s market value has evaporated as much as 800 billion. The growth of the business is also worrying. This situation is not only under pressure from Amazon, but also from sellers. Today we will discuss together how Amazon in 2022 has handed in a report card that everyone is not satisfied with.

Competition intensifies in the post-pandemic era

Amazon is a global e-commerce company, and its competitors are global e-commerce platforms. Among the world's top 500 companies, Wal-Mart is Amazon's number one competitor. And e-commerce companies such as Shopee are catching up head-on. At the same time, Pinduoduo's overseas version of TEMU is coming aggressively, and has won the recognition of a large number of overseas consumers at an ultra-low price. Under the pursuit of all parties, Amazon's share has been eroded. These changes have the power to shake the foundations of Amazon's e-commerce.

Amazon's rapid expansion in the epidemic era is now in crisis

In the first year of the epidemic, Amazon developed rapidly and sang along the way. In the era of dividends, even though the cost of sea and air freight is high, many Amazon sellers benefit from this and earn a lot of money. As a platform, Amazon is even more "pig cage into the water" (in Cantonese, "pig cage into the water" is a metaphor for making money and making money prosperous.) Amazon took advantage of the situation and entered an era of rapid expansion. Amazon's financial report shows that in 2018, Amazon's net sales were 232.9 billion US dollars and the number of employees was 560,000. In 2021, Amazon's net sales will be US$469.8 billion, and the number of employees as of December 31, 2021 will be about 1.6 million, a surge of 186% in three years. With the changing situation of the epidemic, people's enthusiasm for e-commerce has gradually weakened and gradually returned to a rational level. The contraction of business has caused Amazon to fall into a state of loss, and the high operating costs have caused Amazon's cash flow to be in crisis. Following its first loss in seven years in the first quarter of this year, Amazon had another net loss of $2.028 billion in the second quarter. According to the financial report, in the first three quarters of this year, Amazon’s accumulated losses amounted to US$3 billion. An important reason for the loss is "the rising expenses of labor and logistics". Amazon's loss made the capital market lack of confidence in Amazon, which led to the evaporation of market value.

How should Amazon sellers survive the winter?

Amazon still holds the lead in market share. So seller friends don't have to worry too much. If there is danger, it will be organic. In addition, Amazon has resumed advertising on Twitter, which is also very good news for Amazon sellers. The reduction of sea freight will also help sellers and friends to stock up and replenish goods to save costs. In view of the current situation, all sellers and friends must stock up reasonably according to the situation of their own stores, and pay attention to the various dynamics of the Amazon platform, so as to better formulate the operation plan for 2023.

I wish all Amazon sellers great sales in 2023!