Photo: CFP
On October 31, Amazon's official website announced that beginning December 18, Amazon will stop Local buying business. The business was launched four years ago, and 2011 is United States and Chinese coupon sites emerge in time.
Amazon said in a statement, "we learned a lot from buying business, will seek to apply these lessons in the future. "
In addition to Amazon's proprietary buy business in 2014, Amazon has just invested in United States popular coupon sites Living Social, involving a total investment of more than $ 200 million. Everyone is talking about virtual reality VR technology
As with many domestic group purchase websites, Living Social scale have reached a level close to the IPO. But because the United States capital markets to buy model does not recognize, there are examples of Groupon, has not finalized the IPO.
In terms of business models, Living Social was a shadow of its competitor Groupon. But this year it cut 20%, valuation is $ 1 billion when the acquisition by Amazon, fell sharply to us $ 242 million.
This also reflects to a certain extent in Amazon's own group-buying business, to attract businesses to the platform and online marketing to attract consumers, and commissions into the businesses. This kind of short-term trading, single source of income and do not last, so investors generally don't look good.
Amazon has tried, and small business operators to co-operate, the team does not have its own distribution business, provide logistics help Amazon.
If consumers sign up for Amazon Prime service, can be an hour by Prime Now service room door. And currently the hungry and beautiful round takeout, Baidu take-out operation mode is similar.
But the difference is, the logistics costs of both countries there is a huge difference.
Observers piailuo·sijialufei the interface of Silicon Valley News explained, he believed that United States average logistics costs are very high, is make it difficult for this Internet selling United States push ahead with reason.
United States human resources employment costs at $ 25/hour, in addition to high transport costs, and commissions is not enough to cover the cost of distribution, it is difficult to carry on. Perhaps for this reason, Amazon buys and delivery business has been difficult.
In China, buying pattern has gradually begun to local life platform. Modes of service platform is below the line, Internet help line traditional industry transformation, cultivate habits of consumers to pay online, offers a wide variety of home services, referred to as the O2O.
O2O also met this year questioned only by the loss of subsidies to draw lines and traffic on the line, not a long-term solution, and the margins are too low, the industry is difficult to turn a profit in the short term. After the capital tend to be rational, O2O platform began, and once "thousand wars", step by step towards integration and consolidation.
In the United States, and now even the O2O shadow is difficult to see. Due to logistics and cultural differences, "O2O only one China exists. "Piailuo·sijialufei said.
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