Fang: Domestic sellers need to be really familiar with overseas markets

April 3 News, Amazon China's third party platform business Vice President Mr. Fang at the Ninth China SME E-commerce Conference disclosed that last year, Amazon opened stores to provide 64% of the product growth, the number of sellers increased by 196%, the result is very alarming. Fang also from the distribution, payment, product three aspects of the overseas electricity market and domestic electricity market differences, he believes that domestic sellers only really familiar with overseas markets, to adapt to overseas markets, Chinese-made, Chinese-designed products to the global.

Fang, vice president of Amazon China's third-party platform business

The following is a transcript of the speech:

Hello, distinguished guests! It is a great honor to have the opportunity to come to Henan. The first time I came to Henan was 2004. At that time the new area of the lake is still in the planning, just a plan of intent has not started digging. The second time I came to Henan the lake began to dig, dug half, now is honored to see the new area this lake is really beautiful, is one of the largest man-made lake in the world. I am honored to have the opportunity to return to Henan again to meet you.

Today I just want to talk about Amazon's cross-border electricity business and some opportunities for enterprises in Henan.

First, you will see data from global suppliers of electricity. You can see the growth of global electric dealers, which is a big breakthrough in the Asia-Pacific region, the Asia-Pacific region is certainly the most representative of China, China accounted for more than 60% of the Asia-Pacific electricity business share. By the end of 2013 China had become the world's largest market for electricity, surpassing the US, according to the Ministry of Commerce. This is a big trend. This is in line with the government's policy thinking, because it needs to follow the trend. In addition, the global Cross-border electric power providers are growing fast. China's import and export trade in 2013 was almost 25 trillion. This is only 12% of Cross-border. And then you can see in the next three years that it may go from 12% to 20%. We can see how the Cross-boundary electricity dealers will affect China's import and export.

There is another factor in this, that is, the electrical business of SMEs will slowly play its potential. In the past many electric dealers import and export transactions are large enterprises, business-to-business, now we can see a lot of is the company. We have also been encouraging Chinese sellers, Chinese brands to use the power of the way out, out of China, into the world. We have been working on Amazon's global business for two years and we've had a big market welcome in two years. We have chosen several examples of sellers to share with you, they have used the global open shop this project in the past two years, in the Amazon's global platform, including the United States platform, the European platform, to bring products to foreign markets, to achieve their growth. Many well-known Chinese brands such as Rich Anna, blue string, also went abroad, but also doubled the growth.

But to the overseas market, if not familiar with foreign markets, China's electric Chamber of Commerce encountered some of the situation? I would like to spend a few minutes to share some of the foreign situation with you, so that Chinese sellers are more familiar with the foreign electric business environment.

The first obvious difference is distribution. China's distribution, especially the distribution experience of consumers, is very different from the American experience. China's business day up, the next day, as long as the arrival of a fixed amount of shopping, such as Amazon is 49 pieces can enjoy free distribution. But this is not the same in foreign countries, you can see the normal distribution date is 3-5 days, if the next day to get the goods to pay extra. I would like to show you a percentage, we are abroad if the shopping to spend the distribution of how high the cost. Many of China's cross-border consumers ignore this charging habit, and sellers have to consider pricing and shipping costs together, and if prices are set too low and fees are too low, there will be some challenges in terms of profits. This is some experience we have seen over the past two years.