Amazon's profitability heavily relies on its strong performance in the US market. The US market contributes over 70% of its revenue and, with a significant Customer Lifetime Value advantage, is a key driver of Amazon's profit growth. The US market provides a stable cash flow, supporting its technology research and development, logistics construction, and global expansion, creating a virtuous cycle that solidifies its global e-commerce leadership.
Data from Amazon's Prime Early Access Sale indicates a diversion of some Black Friday and Cyber Monday demand, leading to a decrease in average order value. Consumer sentiment suggests a wait-and-see approach. Amazon's own products performed strongly. Third-party sellers need to adapt by employing strategies such as differentiated competition, refined operations, and diversified channels to navigate the evolving market landscape. The report highlights the need for sellers to be proactive and responsive to changing consumer behaviors during major sales events.
