Divergent and Convergent Thinking, Point of View Statement & How Might We (Amazon)


Challenges

Amazon is an American multinational technology company that sells products and services online. Most of Amazon’s operating profits come from its cloud computing division, Amazon Web Services (AWS). Amazon is also a leader in generative artificial intelligence (GenAI) with its Bedrock platform. 

One of the main challenges that Amazon has been facing all the time is counterfeit products. Counterfeit products have been a significant challenge for Amazon, as they can undermine consumer trust and satisfaction. Despite Amazon’s efforts to combat counterfeits, the sheer volume of third-party sellers on its marketplace makes it difficult to entirely eradicate counterfeit listings. Because of the scope and complexity of its marketplace, Amazon continues to face a difficult challenge in eliminating counterfeit products. Continuous innovation and engagement with brands, sellers, and regulatory authorities are critical in combating counterfeit products on Amazon's platform. (Team Hopstack, April 18, 2024 Top 8 Amazon Challenges in 2024 & Their Solutions)

 (SIEW SZE ZHONG TP070951)

Amazon is one of the largest company which is well known for its e-commerce platform and contains a large number of customers distributed around the world. Due to its quantity of customers, it has contributed Amazon to bring out some negative effects to environment due to large logistics and shipping system. Large logistics and shipping system had caused Amazon to be criticized for emissions of carbon from transportation and packaging waste produced during the whole progress (Calma, 2022). Thus, the balance between the environmentally friendly method and efficiency of the service become the important task for Amazon to achieved so that the harmless of this issue can be overcome.  

 (ONG CHENG BIN TP070411)

For the current challenges Amazon faced is that the company has a rigid policy about compensation. Payments are typically issued every two weeks. At the same time, suppliers must pay for the production that they then resell on Amazon and other platforms. For instance, a lot of Chinese manufacturers want an advance payment of 25%. A merchant may not get money for their items for three to four months after the advance payment was made due to the production process, shipping, customs clearance, and Amazon payout cycles. Basically, the Amazon sellers must wait for extended periods of time before seeing any financial gain from their inventory investment.

Your profit on Amazon might have a big difference depending on your delivery expenses, margins, sales structure, and competition in your industry. Is difficult to  promptly analyzing market performance and profitability accurate and demanding procedure. Besides, a lot of sellers are unsure about their profitability due to Amazon's subpar reporting. When using hybrid programs and switching between Amazon DSP, Seller Central, Vendor Central, and the Amazon Ads platform, you'll discover that you're downloading reports from multiple interfaces and assembling an incompatible collection of data sets that require retooling before you can even start analyzing performance. 

It not simple to duplicate your other channel strategy on Amazon. Is because with many of these obstacles specific to the Amazon/RMN environment, sellers face an difficult process of learning every aspect of the platform, including shipping options, FBA logistics, re-negotiating fees, duplicate listings, MAP issues, tax setup, buy box competition, reviews management, and more.
  (SHUM HE TING TP070362)

Opportunities

The continued move from brick-and-mortar retail to e-commerce provides Amazon with huge chances to increase its global market dominance. Amazon’s global expansion has been a key strategy for the company’s growth and dominance in the e-commerce industry. Amazon has grown its global presence through strategic acquisitions and investments in established e-commerce businesses. For example, Amazon acquired Souq.com in the Middle East, allowing the corporation to create a large foothold in the region. (T. Nicholson, December 4,2023 Amazon’s Global Expansion Strategy: Driving Growth on a Global Scale)
 (SIEW SZE ZHONG TP070951)

By overcoming the environmental issue, Amazon can consolidate their position in the e-commerce market. The ways that can be done by Amazon is making investments in green technology, for example like electrical or renewable energy delivery transportation that bring less impacts towards environment (Johnson, 2024). For the packaging sector, it can be improved by the usage of eco-friendly packaging or made of more sustainable materials (Oláh et al., 2018). In consideration of costing, it can be overcome due to some investor that interested in protecting environment will willing to invest in Amazon, thus the budget of these program can be reduced. For instance, these sustainable method can balance up the eco-friendly towards environment while not affecting the efficiency of the service.

 (ONG CHENG BIN TP070411)

Brainstorming Section 

How Might We reduce Amazon's carbon footprint while 
maintaining fast delivery time?

How Might We leverage advanced technologies and partnerships to effectively detect and eliminate counterfeit products on Amazon's Marketplace


References

Oláh, J., Kitukutha, N. M., Haddad, H., Pakurár, M., Máté, D., & Popp, J. (2018). Achieving sustainable E-Commerce in environmental, social and economic dimensions by taking possible Trade-Offs. Sustainability, 11(1), 89. https://doi.org/10.3390/su11010089


Calma, J. (2022, August 1). Amazon’s climate pollution is getting way worse. The Verge. Retrieved from https://www.theverge.com


Johnson, N. (2024, February 6). How to reduce business carbon footprint in ecommerce - EcoCart. Retrieved from https://ecocart.io/reduce-business-carbon-footprint/


Hopstack, T. (2024, April 18). Top 8 Amazon Challenges in 2024 & Their Solutions. Retrieved from https://www.hopstack.io/blog/challenges-faced-by-amazon-fba-sellers


Hopstack, T. (2024b, April 18). Top 8 Amazon Challenges in 2024 & Their Solutions. Retrieved from https://www.hopstack.io/blog/challenges-faced-by-amazon-fba-sellers#:~:text=There%20are%20instances%20where%20fraudulent,trust%20in%20the%20Amazon%20platform.


Adlucent. (n.d.). The top three Amazon challenges and how to solve them. Retrieved from https://www.adlucent.com/resources/the-top-three-amazon-challenges-and-how-to-solve-them/

Oláh

Content, T. N. O. &. (2023, December 4). Amazon’s global expansion strategy: Driving growth on a global scale. Medium. Retrieved from https://youfindyoubuy.medium.com




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