What is Amazon? Discover Amazon Business Potential 2025
Understanding “What is Amazon” brings Vietnamese businesses a successful year in 2024 in the international e-commerce market. With the strong development of e-commerce platforms, Amazon is the bridge for brand development, affirming the position of Vietnamese products in the world.
1. Overview of Amazon
From a retail bookstore, Amazon has grown to become a leading business “empire” for decades. It is the creative business thinking that has helped Amazon become a global brand.
1.1. What is Amazon?
Amazon is a multinational technology company headquartered in Seattle, Washington, USA. It is one of the largest companies in the world, famous for its pioneering role in the fields of e-commerce and cloud technology.
Starting out as an online bookseller, Amazon has transformed into an Internet company focused primarily on e-commerce, cloud computing, digital streaming, and artificial intelligence (AI).
1.2. Amazon's influence
Ranked fourth in the world by market capitalization with a staggering $2.387 trillion, Amazon has established itself as a global giant, changing the way people shop and do business.
Market Capitalization Ranking 2024 (Source: Companies Market Cap)
Amazon is a place that can connect sellers and buyers around the world. With a vision and innovative thinking, Jeff Bezos, founder of Amazon.com, has continuously sought creative ways to improve the customer experience.
In 2018, Amazon officially set foot in the Vietnamese market, marking an important turning point for the domestic e-commerce industry. Amazon's presence has created both opportunities and challenges for domestic businesses.
So what are the impacts from Amazon? Not only stirring up the economy, which is already fiercely competitive, Amazon also opens up opportunities for Vietnamese businesses to access a global customer network.
According to the AGS 2024 report, the export value of Vietnamese businesses increased by 50%. The number of Vietnamese sales partners increased by 40% and more than 17 million products from Vietnamese businesses were sold to Amazon customers worldwide.
2. What is Amazon? The outstanding potential that this platform brings
So, what is Amazon that attracts millions of businesses to participate every day? This is a platform that brings unlimited e-commerce business opportunities.
2.1. Business advantages
Amazon is the world's largest e-commerce platform, attracting millions of global customers every day. Amazon's ecosystem is large and reaches consumers in more than 20 countries around the world. Not only that, Amazon also builds centers and branches in major countries to support customers as quickly as possible.
In addition, Amazon also provides many tools and support services to help sellers manage their accounts, optimize products and reach customers. This is a huge advantage and should be maximized to develop the brand.
The Vietnamese Government has issued support policies to encourage businesses to transform digitally. According to the Ministry of Industry and Trade, the Government will always accompany and create conditions for businesses to develop in the field of e-commerce.
2.2. Diversified business models
Amazon allows businesses to choose from many different business models. These types include Private Label, Wholesale, Retail Arbitrage, Online Arbitrage, Dropshipping, Handmade.
Some common business models on Amazon (Source: Jungle Scout)
Depending on different goals, businesses will choose the most suitable model. This will help businesses adapt more easily to the market and build strategies that suit their business needs.
Learn more: Learn about the Amazon business model
2.3. Providing effective business support tools
Amazon provides a comprehensive support tool system to help sellers optimize their business operations. These tools include product management, advertising and sales performance tracking. Thanks to that, sellers can easily operate, improve business strategies and increase competitiveness in the international market.
3. Challenges when doing business on Amazon
Amazon is a good opportunity to expand the market. Along with that are countless difficult challenges, especially for businesses or sellers who are first exposed to this platform.
3.1. Fierce Competition
The competitive environment on Amazon is extremely fierce. With millions of sellers from all over the world, businesses need a different and effective strategy to stand out in the eyes of customers. Factors such as price, product reviews and ratings are always points that competitors are willing to optimize to gain an advantage.
3.2. Strict policies and regulations
Amazon always promotes consumer rights. Therefore, this platform applies extremely strict policies and regulations, from product quality control to information description. In particular, Amazon's system has the ability to automatically detect errors, forcing sellers to always update and be careful in every step.
3.3. Barriers for newcomers
New businesses will face many different barriers in the process of operating and building an effective promotion strategy. These difficulties require perseverance and the ability to learn and adapt to gradually optimize business operations.
Understanding the challenges on the Amazon platform, we can see that this is an e-commerce platform that requires a large investment. This leads to the need for businesses to conduct thorough research before starting a business on this platform.
4. What are the current hot business trends on Amazon?
Currently, doing business on Amazon is witnessing some outstanding trends.
Strengthening the building of private brands: Amazon's Brand Registry program helps protect brands and increase prestige. The program attracts a large number of Vietnamese businesses to participate, with the number increasing 35 times in the past 5 years.
Using the Fulfillment by Amazon (FBA) service: FBA optimizes operational processes and improves customer experience. The number of Vietnamese partners using this type increased by more than 300% compared to 2019.
Diversifying product portfolio: Vietnamese businesses use their advantages to expand their product portfolio, meeting the diverse needs of global customers. Some potential industries include Furniture, Apparel and Beauty.
Application of AI in business: Businesses are actively applying AI to optimize marketing strategies. This helps improve work performance, personalize customer experience and enhance advertising effectiveness on Amazon.
This is essential information for businesses that are still wondering what the business trends on Amazon are. Grasping these trends will help build Vietnam's position in the field of cross-border e-commerce.
5. Conclusion: What is Amazon?
Through the article "What is Amazon? Discover the potential of Amazon 2025", we can see that this is an extremely potential market to exploit in the future. Amazon e-commerce platform is the bridge between Vietnamese businesses and the global market.
With its outstanding advantages, Amazon has proven to be an ideal choice for businesses that want to expand their scale and build international brands. However, to be successful, businesses need to understand the specifics of the market, carefully prepare strategies and constantly learn and improve.
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