Amazon and shopee, a cross-border e-commerce platform, compare which one is better, their respective advantages and disadvantages.

At present, the cross-border e-commerce industry is very hot, and there are many cross-border e-commerce platforms, such as Amazon, shopee, eBay, lazada, wish, etc., and each platform has its own advantages and disadvantages. Today, let’s talk about the hottest Amazon and Shrimp in the market.

First of all, let’s talk about the markets targeted by the two platforms:

Although Amazon is said to have opened stores all over the world, the sites it pays attention to are Europe Station, North America Station and Japan Station, and other sites have just been established for about a year, and they are still not very stable. Shrimp skin is mainly aimed at the Southeast Asian market. At present, there are seven major sites: Taiwan Province, Malaysia, Indonesia, Thailand, Singapore, Viet Nam and the Philippines. Relatively speaking, Taiwan Province Station is relatively easy to do, because the languages are similar, so Taiwan Province Station can be opened at the first stop.

Mode of platform

Amazon has two modes: FBA and FBM. FBA is the boutique mode. First, it needs a large number of goods to be sent to Amazon’s overseas warehouses, which are delivered by Amazon officials. The advantage is that the logistics cost is low and the timeliness is relatively fast. The disadvantage is that it needs to be stocked. Secondly, it is necessary to ensure that the goods can be sold, and if they cannot be sold, they will lose money. (Novice Xiaobai does not recommend doing FBA directly)

There are two modes of shrimp skin, boutique and distribution. The profit of shrimp skin is not as high as that of Amazon, which is about 30-50%, Amazon is about 40-70%, and special products are about 100-200%. However, the shrimp skin takes the order quantity, and it is no problem for a stable store to pay more than 40 orders a day. Unlike Amazon, Amazon takes the customer unit price, which may be several orders a day, but the customer unit price is high.

Store registration conditions of two platforms

Amazon: business license, dual-currency credit card, mobile phone number, email address and ID card.

Shrimp skin: business license, screenshots of the store’s order flow or capital flow in the past 3 months (any store can be used, such as Pinduoduo, Taobao, JD.COM, Amazon, etc.), QQ number.

Platform service fee

Amazon has no deposit, but the platform has store rent every month, which is 25 pounds for Europe station and 39.9 dollars for North America station, followed by 8-15 points after the store issues the order.

Shrimp skin has no deposit and no rent. In the first three months, shrimp skin still has a certain subsidy for the store. After three months, the platform will charge a 5% commission on the order, which is also deducted from the turnover after the transaction. Basically, it can be said that it is zero cost to open a store.

Communication aspect

Amazon didn’t chat in time. Customer service came and went through email. The seller only needs to reply within 24 hours.

There is timely chat customer service for shrimp skin. The first stop is Taiwan Province site, and the correspondence is sent in the form of traditional Chinese characters. shopee provides some measures for the seller about customer service. Indonesian and Thai sites, Shopee has local customer service teams, through which the seller can communicate with the buyer.

In terms of profit

Amazon’s customer unit price is higher than that of shrimp skin, and the profit is generally 40%-70%. The platform draws 8-15 points. The customer unit price is high and the profit is high, but the order volume is small.

The profit of shrimp skin is not as high as that of Amazon, and the profit of a single order is 30%-50%. However, shrimp skin is in volume, and orders are basically issued in the first week. It is no problem to issue dozens of orders in January. The orders for shrimp skin are not the same as those of domestic e-commerce. The orders for shrimp skin are basically that one buyer buys multiple goods at the same time.

Logistics aspect

The delivery process of Amazon FBM mode is that the store issues the order and sends it to the international transit warehouse, and then the staff of the transit warehouse packs it twice and issues it to foreign countries.

The delivery process of dried shrimps is to send them to the transit warehouse of dried shrimps in China after the store issues the order. There are five warehouses in Shanghai, Guangzhou, Shenzhen, Yiwu and Fujian, which are delivered by dried shrimps officials.

Store operation

All the modes of operation without goods supply are similar. They collect goods from other e-commerce platforms and upload them to their own stores. Amazon earns information difference and exchange rate difference between countries, and shrimp skin earns information difference and price difference. Amazon has no limit on the number of uploaded goods, but the number of new stores is only 1,000 in the first week. After the first week is over 1,000, it will apply to the platform for expansion, which will be unlimited after almost two or three applications. Shrimp skin has a limit on the number of uploaded products in the store. Only 1,000 products can be uploaded in the first month, and the number will be expanded to 3,000 after five orders are issued. At present, the maximum number will be extended to 2,000, and generally new stores will issue orders in the first week.

Prescription aspect

Generally, the logistics time limit of Amazon Europe Station in North America Station is about 25 days before customers receive the goods completely, and usually send air parcels.

The logistics aging of shrimp skin is faster than Amazon, because Southeast Asia is also close to us, usually in 5-10 days.

In terms of expense settlement

Amazon’s settlement method is that Amazon binds its own third-party collection account, and the third-party collection account is bound to my savings card. There will be an exchange rate conversion fee of 0.7, and the payment cycle of Amazon is 14 days, plus the customer receives the goods for about 10 days, which is almost 25 days. Shrimp skin supports P card and pingpong (third-party collection platform) to make payment. The payment cycle of shrimp skin is usually twice a month, at the beginning of the month and in the middle of the month, respectively, and the settlement currency is US dollars except Singapore station using Singapore dollar and Vietnam station using Vietnamese dong.

In fact, these two platforms have their own advantages and disadvantages. Amazon has high customer unit price and high profit, but the operation and logistics timeliness are not as simple as shrimp skin. Shrimp skin has low profit but large quantity, and it is easy to get started and operate. You can see the profit in a short time, and the logistics speed is relatively fast. All these two platforms are good choices at present. The final decision on which platform to choose depends on yourself (source: cross-border e-commerce bigwigs).

The above content belongs to the author’s personal opinion and does not represent Hugo’s position! This article is reproduced with the authorization of the original author, and it needs the authorization and consent of the original author.　

(Source: Cross-border e-commerce incubation)