Amazon(US:AMZN) Sou Hu Cai Jing·2025-11-07 03:52Core Insights - Amazon's recent 15-hour outage resulted in a loss of over $10 billion and a 9% drop in orders, marking the most severe crisis in four years and triggering a shift in the cross-border e-commerce landscape [1][3] - The crisis has led to a mass exodus of overseas merchants to Chinese platforms, questioning Amazon's dominance and highlighting the rise of Chinese competitors [1][3] Amazon's Challenges - Amazon's difficulties were foreshadowed, with the outage being the tipping point for its decline [3] - Historically, Amazon dominated the e-commerce market with self-built logistics and strict quality control, holding a 15.4% market share in China in 2008 [4] - The company has become trapped in path dependency, slow to respond to market changes, and has failed to adapt its U.S. desktop shopping model to the mobile-centric habits of Chinese consumers [4][6] - Amazon's "two-day delivery" standard is now seen as outdated compared to JD.com's "211 limited-time delivery" model, and its centralized management structure has hindered timely market responses [6] - High commission rates of 15%-25% have pressured merchants, who have remained with Amazon due to a lack of better options until now [6] Rise of Chinese Platforms - TEMU, a subsidiary of Pinduoduo, has emerged with extremely competitive pricing, offering products like Bluetooth speakers for $6 and jackets for $12, attracting overseas consumers [7][8] - The low prices are sustainable due to China's complete supply chain, which significantly reduces production, logistics, and operational costs [8] - Yiwu, a global hub for small commodities, reported a 26.3% year-on-year increase in import and export value, providing a steady supply of high-quality goods for Chinese cross-border e-commerce [9] Competitive Strategies - Alibaba's AliExpress has targeted Amazon's core high-net-worth demographic by halving commission rates and promoting a "higher transaction at half the cost" strategy, attracting numerous quality merchants [11] - By October, ten brands with annual sales exceeding $1 million on AliExpress surpassed Amazon's global sales, with some brands achieving 30% higher daily sales than on Amazon [12] - Chinese platforms are not only competing on price but also on a deep understanding of merchant and consumer needs, offering services like real-time data updates and channel conversion analysis [14] Market Dynamics - The number of businesses in China engaged in cross-border e-commerce has surged, with 61.8% established in the last three years, indicating a maturing ecosystem [15] - The integration of technology and business models has enhanced the competitiveness of Chinese platforms, moving beyond mere price advantages to a comprehensive ecological advantage [19] - Global economic conditions and changes in tariff policies in regions like the U.S. and EU are pushing the industry towards upgrades, benefiting Chinese platforms [20] Conclusion - The 15-hour outage at Amazon signifies a shift in the cross-border e-commerce landscape, with merchants recognizing the strengths of Chinese platforms [23] - The rise of Chinese e-commerce is not coincidental but a result of multiple strengths, positioning them as serious competitors rather than mere followers in the global market [23]