Amazon's flywheel theory is the core business logic and operating philosophy of the Amazon platform.

Amazon's own interpretation of the "flywheel theory" is: This is a closed loop that can start from any point but has no end.

What the Amazon platform needs to do is to provide consumers with more product selections and convenience in the product selection process. This is to achieve a good customer experience. When this experience is good enough, buyers will spread word of mouth for Amazon, so that Amazon will obtain traffic very quickly and very accurately.

As long as the traffic is large enough, Amazon will have other sellers joining. New sellers can not only bring new products and competition, but also reduce the price of products on the platform. Consumers can further improve their consumption experience, thus gradually forming a virtuous circle.