We are all reborn, who wants to be the richest man?

Chapter 631: E-commerce War
The surge in consumer spending around the world on Christmas Day in 1993 was not entirely due to rising prices for electronic products.

Electronic products account for a large proportion of consumer goods, but this is not all. In terms of scale, daily necessities are the absolute majority.

However, what makes global consumers satisfied is that this year's sales season can really be said to be a full-line price reduction, which can be described as a free pick.

The reason is that the global e-commerce war has entered a white-hot stage, which can also be said to be a battle between online shopping in the East and the West.

But what’s interesting is that behind the protagonist in the East stands Wall Street, while behind the overlord in the West stands the Far East Financial System.

After more than a year of development and growth, the e-commerce field has become clearer, from a competition among many players to a two-player competition.

Hea in Hong Kong and Amazon in the United States are recognized by the outside world as the most powerful contenders who will dominate the e-commerce market in the future.

As for other websites, they are basically not favored because their market share is too low.

Even the newly emerged eBay, which is known as a disruptor, has not yet expanded beyond the United States, and its market share only accounts for 9% of the North American market.

What about hea and Amazon? The gap is huge.

As one of the earliest shopping websites, hea received a large amount of financing from Wall Street after dominating the Southeast Asian market.

Relying on the power of Wall Street, it quickly entered the Western market. Now hea owns half of the Asian market and 30% of the Western market. In terms of user volume, hea is now the world's largest shopping website.

However, Amazon is not far behind. With the support of the Far East Group, it quickly occupied the North American market, became the leader in the North American market, and then directly attacked Asia.

Amazon now has a 60% share of the North American market and a market share of nearly 30% in Asia.

"There is nothing wrong with Bezos' strategy. As long as Amazon takes over HEA, the European market will naturally belong to Amazon."

There are not many European markets, which is why Amazon is now ranked second and has fewer users than hea.

However, Luo Nianzhong thought there was nothing wrong with Bezos' decision to put limited ammunition on the front battlefield.

Not to mention that there are local e-commerce websites in Europe fighting against HEA, as long as Amazon can take down HEA, Amazon, with its ammunition replenished, can march into Europe at any time.

"The two sides are now engaged in a fierce price war. Spending money to snatch users was invented by Amazon, but this thing does not contain much technical content, and it was stolen by HEA."

It was precisely because of Amazon's rapid rise that Wall Street saw hope for HEA to seize the Western market and relied on strong capital to make HEA the leader in the e-commerce field.

However, HEA's wealth does not mean that Amazon has no money. A month ago, Amazon just completed its Series B financing, and Yunhua Capital and Asia Investment jointly acquired 10% of Amazon's shares.

With a pre-investment valuation of $6.4 million, Amazon received $6400 million in funding.

Yunhua Capital and Asia Investment actually made a great deal by acquiring 6400% of Amazon's shares for US$10 million.

Wall Street is now betting on HEA and is unwilling to invest in Amazon. Amazon, on the other hand, looks down on small and medium-sized institutions and does not want to offend the Far East Group because of them.

Otherwise, Amazon's valuation would have to exceed 13.8 million US dollars. Just look at the current valuation of HEA, which has reached billion US dollars.

Although Amazon is at an absolute disadvantage compared to HEA now, for investors, Amazon's return on investment is actually better than that of HEA.

It’s just like what Du Huilian is thinking now, “After hea’s C round of financing, the founder holds less than 15% of the shares and has completely lost control of hea. It’s not an exaggeration to say that he is a company mascot.”

Even though the current market value means that the founder Du Yu is worth more than HK$1 billion and has become a celebrity in Hong Kong Island, this is just a castle in the air.

Once hea loses, Wall Street can escape, but you, Du Yu, cannot.

A huge gap in life may make a person unable to recover. Everyone wants to get rich overnight, but sometimes sudden wealth is not necessarily a good thing.

“I heard that Wall Street is considering retreating?”

"Yes, hea has submitted the application and will be listed on NASDAQ in March next year."

To outsiders, this is another milestone for HEA and the key to unifying the industry.

But in Luo Nianzhong's view, this is Wall Street looking for a way out in case of emergency.

Everyone will be happy if hea defeats Amazon and completely occupies the market. If it fails, it will need to find a buyer before it loses.

The purpose of going public is to make up a wonderful story for the shareholders of the United States and let them take over the shares of hea. "It seems that the e-commerce war will not be decided in one or two years."

Regardless of winning or losing, hea cannot show any signs of defeat before Wall Street withdraws, even if it means losing money.

"I just don't know if the hea can last that long."

It's true that Wall Street has money, but they are also greedy, and Bezos now has a killer weapon in his hands.

Knowing this, Luo Nianzhong talked with Du Huilian with great interest about this e-commerce war today.

At the same time, at Amazon's headquarters in Seattle, Bezos was holding a high-level meeting with senior executives.

“What’s the most important thing for a shopping website? The number of users? The number of products? None of them.

The most important thing is the number of sellers' users. With a large number of sellers, our output will increase, and rich products will naturally attract more users.

How can we get sellers to open stores on Amazon? That is to give them greater benefits, so that they can make more money and pass on the profits to consumers."

Bezos continued, tapping the writing board behind him twice with the marker in his hand.

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"What are the rules of HEA for sellers and merchants? Sellers who come to open a store must pay a service fee of 2% to 3%.

This is our advantage, but I want to expand it again.

That is, not only do we not require service fees, we will also reward sellers who provide good service and have good sales every month.

I have asked the technical department to develop a rating system, where every customer can rate the store, and the top 100 will be selected every month and given a reward of $10,000 to $50,000."

This is why many early-stage business founders don’t like capital, because sometimes capital is short-sighted.

This is Amazon’s killer move, but it’s not the only one. Another one is online payment.

Far East's W-pay has been online for more than a year. At the beginning, only Far East banks were connected to this portal, which was very inconvenient in North America because users in many regions did not have Far East bank cards.

However, things took a turn for the better two months ago when Wall Street saw the potential of W-pay and started discussing cooperation with Far East.

The condition is that W-pay raises funds and goes public, and Wall Street supports the development of W-pay.

In fact, this is the result of compromise between the two parties. Wall Street has seen the development potential of W-pay, and Luo Nianzhong also needs W-pay to rely on the power of Wall Street to completely enter the Western market.

The main purpose of Far East's investment in hea was to promote the development of W-pay, but after hea took control of the initiative on Wall Street, it decisively abandoned W-pay because it was not in their interests.

Online shopping is very troublesome nowadays. In the beginning, you just have to pay and receive the goods, and the courier company will collect the goods on your behalf.

However, there is a time lag in settlements with express delivery companies. As the scale of online shopping grows, Wall Street cannot tolerate express delivery companies paying such large sums of money.

So Wall Street, which abandoned W-pay, came up with a solution, which is card code.

Every online shopping user can go to the corresponding bank to get a password card, and when shopping online, just enter the corresponding password that appears.

However, there is a disadvantage, which is that the card password is limited. If you shop online frequently, you need to go to the bank frequently to collect the money, which is inconvenient.

Unlike W-pay, you only need to bind your bank card and enter your password when shopping online to directly deduct the money.

Online payment is the trend, and Wall Street has seen it. Now they are not only preparing to invest in W-pay, but are also developing their own online payment software.

Therefore, the battlefield between Amazon and HEA is not only a battle of e-commerce, but also a battle of online payments between the Far East and Wall Street.

Once hea wins, hea, which is equipped with its own online payment software, will definitely not give W-pay any chance.

But Wall Street wants to take over everything, and now they have a better vision for Amazon's future, so they are willing to connect to W-pay. At that time, they will not only get shares in W-pay, but also take advantage of the opportunity to acquire shares in Amazon.

However, once such a large share is held, it must be from the Far East, and Wall Street can only follow behind and pick up the meat.

(End of this chapter)