Report on Risk Analysis of Amazon Platform Dependence for Cross-border E-commerce Enterprises

In recent years, China’s cross-border e-commerce industry has experienced rapid development, with a number of representative enterprises such as Anker Innovations and Aukey Technology emerging. These enterprises generally adopt “reaching overseas consumers through third-party e-commerce platforms like Amazon” business model [1]. However, this business model of high dependence on a single platform has raised widespread market concerns about their risk exposure.

Take Aukey Technology as an example: its prospectus shows that the company’s sales channels are mostly from Amazon, making Amazon its main sales platform [1]. This over-reliance on a single platform is not an isolated case but a common phenomenon in the entire industry. Anker Innovations (300866.SZ), as an industry leader, also faces similar business structure challenges [0].

are the primary challenge for enterprises relying on a single platform. According to the case study of Aukey Technology, due to excessive use of third-party platforms, especially Amazon, platform transaction fees have continued to rise, leading to poor cost control results [1]. This directly compresses the enterprise’s profit margin and reduces operational efficiency.

Take Anker Innovations as an example: although the company is large-scale (with a market capitalization of 615.5 billion USD) and has relatively strong profitability (ROE of 27.58% and net profit margin of 8.80%), the continuously increasing platform fees still erode its profitability [0].

Aukey Technology’s development history provides valuable lessons for the industry. In its early days, relying on the supply chain advantages of Shenzhen South China City, the company launched a large number of 3C electronic products such as Bluetooth headsets, power banks, and car DVDs through Amazon, adopting an extensive distribution model to win by quantity [1].

In 2020, the company’s sales channels were highly concentrated on Amazon. Although it quickly promoted its own brand “Aukey” with platform traffic, it also埋下了 over-reliance risks [1].

After experiencing account suspension crises, Aukey Technology began to actively implement diversification strategies:

: Expand offline channels, establish cooperative relationships with local distributors, enter overseas physical retail markets, expand market coverage, and reduce dependence on a single platform [1].

: Since 2021, it has invested in building Shenzhen Xiyou Smart Warehouse to provide logistics support for its own e-commerce business. As of April 2024, the company has managed 27 overseas warehouses with a total construction area of over 5.5 million square feet, providing one-stop logistics solutions for other e-commerce sellers [1].

As an industry benchmark, Anker Innovations’ business model and risk management strategies are worthy of attention:

According to the latest financial data, Anker Innovations maintains a relatively healthy financial status [0]:

Financial Indicator	Value
Market Capitalization	615.5 billion USD
P/E Ratio	23.80x
ROE	27.58%
Net Profit Margin	8.80%
Current Ratio	2.17
Quick Ratio	1.34

The high current ratio (2.17) and quick ratio (1.34) indicate that the company has strong short-term solvency and liquidity risk management capabilities [0].

According to in-depth financial analysis, Anker Innovations presents

, reflected in the low depreciation and capital expenditure ratio. This may mean limited upside potential for reported profits [0].

However, the company’s

, showing a relatively stable financial structure [0].

Considering the above factors comprehensively, the over-reliance of cross-border e-commerce enterprises on a single platform like Amazon constitutes

, specifically reflected in:

:

• Uncertainty of platform policy changes
• Catastrophic impact of account suspension risks
• Pressure of continuous increase in platform fees
• Trend of stricter policy supervision

:

• Technical feasibility of diversified channel construction
• Constructability of independent logistics systems
• Transferability of brand value

Platform dependence risks are transmitted to enterprise operations through the following paths:

Platform Policy/Rules Changes
    ↓
Store/Account Risk Exposure
    ↓
Revenue Interruption/Significant Decline
    ↓
Cash Flow Pressure
    ↓
Supply Chain/Inventory Management Crisis
    ↓
Brand Reputation Damage
    ↓
Financing Capacity Reduction

: In-depth study and strict compliance with platform rules, establish a compliance management system to reduce account suspension risks.

: Reduce the proportion of platform fees through refined operations and improve unit efficiency.

: Gradually establish a multi-platform sales network to reduce dependence on a single platform. Specifically including:

• Settle in other mainstream e-commerce platforms (such as eBay, Walmart, Target, etc.)
• Develop independent stations (DTC mode)
• Expand offline retail channels

: Refer to the case of Aukey Technology, build an independent and controllable global multi-level warehousing and logistics network [1] to reduce dependence on platform logistics.

: Establish brand assets with international influence, reduce platform dependence, and enhance consumer loyalty.

: Actively expand markets outside the United States, such as Europe and Southeast Asia, to分散 regional policy risks.

: Establish a diversified supplier system to enhance supply chain elasticity.

Bangze Chuangke (and similar cross-border e-commerce enterprises) with over 95% of overseas revenue and high dependence on Amazon platform确实构成

. This risk is reflected in multiple dimensions such as financial cost pressure, operational safety threats, and supply chain vulnerability.

However, this risk is not insurmountable. From the case of Aukey Technology, enterprises can effectively mitigate platform dependence risks through strategic measures such as channel diversification, logistics autonomy, and market dispersion [1].

For investors, when evaluating such cross-border e-commerce enterprises, they should focus on:

1. Platform revenue concentration indicators
2. Progress of diversification strategies
3. Independent channel construction capabilities
4. Financial health and cash flow stability

: Amazon platform dependence constitutes a risk, but it is a . The key lies in whether the enterprise has strategic foresight and execution capabilities to achieve business model transformation and upgrading.

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[0] Jinling API - Anker Innovations (300866.SZ) Company Profile and Financial Data

[1] Research on Business Models of Chinese Cross-border E-commerce Enterprises - Case Analysis of Aukey Technology (https://pdf.hanspub.org/ecl_2314527.pdf)