China Reaches Global Majority on Amazon

[ASV_Vites]

China Reaches Global Majority on Amazon

LINK

Chinese sellers now represent 50.03% of Amazon’s global active seller base, marking the first time they’ve crossed the 50% threshold across all of Amazon’s international marketplaces. But while Chinese sellers have won the numbers game, American sellers maintain an edge in revenue generation.

The milestone reflects a decade-long trend that started with Chinese sellers accounting for just 7.1% of new registrations on Amazon.com in 2015, compared to 70.6% from the United States. By 2024, Marketplace Pulse data indicates that these figures had almost completely reversed, with Chinese sellers comprising 62.3% of new registrations, while American sellers had fallen to 26.8%.

[papy]

@ASV_Vites

Chinese sellers comprising 62.3% of new registrations, while American sellers had fallen to 26.8%.

Not to put too fine a point on it, but how many of the Chinese sellers were actually just duplicate accounts?

[dwat0870]

@ASV_Vites

By 2024, Marketplace Pulse data indicates that these figures had almost completely reversed, with Chinese sellers comprising 62.3% of new registrations, while American sellers had fallen to 26.8%.

The inevitable result of Bezos selling out to Xi and the CCP…

[Lost_My_Marbles]

@papy

Not to put too fine a point on it, but how many of the Chinese sellers were actually just duplicate accounts?

Life in a petri dish? … the easiest way to multiply a bacteria.

[Uncle_Leroy]

@ASV_Vites

But while Chinese sellers have won the numbers game, American sellers maintain an edge in revenue generation.

Of course we do because the Chinese stuff is cheap as (referring to both quality and cost). Now that the de minimis threshold is gone, I wonder if that gap will rise with the lessening availability of cheap crap or will it lessen as they just raise their prices to account for it?

[SellerFeller]

@Uncle_Leroy

will it lessen as they just raise their prices to account for it?

I have noticed that the Chinese knockoffs of my products have gone up in price.

[TJB]

@papy

how many of the Chinese sellers were actually just duplicate accounts?

Not necessarily duplicate accounts but certainly not legitimate accounts. You can see people trying to buy/sell Amazon/Walmart/Ebay accounts all over WeChat. Just setting up accounts and selling them is a business all to itself.

[selg]

How are the Chinese pulling off setting up multiple accounts? Doesn’t each account require a unique credit card?

[dwat0870]

@selg

Doesn’t each account require a unique credit card?

When the entire system is corrupt anything and everything is possible for the right price.

[wadeorcas]

@selg

Doesn’t each account require a unique credit card?

Maybe virtual account numbers? I have virtual numbers for my different venues and vendors so I can find out who is getting hacked without shutting down the base card.

[SellerFeller]

I imagine that they have inside help from Seller Support reps in their country of origin.

[lake]

I have, in the past, warned about the risks of drawing conclusions from Marketplace Pulse data. It is derived from publicly available information and their data and its conclusions may not represent what they claim it does.

And although some of their analysis like the number of new sellers is likely to reflect the truth, they offer no explanation for how the following was derived.

“According to Marketplace Pulse estimates, US sellers account for approximately $157 billion of Amazon.com’s $305 billion in third-party GMV, compared to $132 billion for Chinese sellers. The average US seller generates $884,958 in revenue, more than double that of their Chinese counterparts at $393,557. Globally, the pattern holds – Marketplace Pulse estimates Chinese sellers capture just 39% of third-party revenue worldwide, despite a majority seller share.”

And an obvious explanation of how the made their estimates is not present.

Does this seem accurate or meaningful? “The average US seller generates $884,958 in revenue, more than double that of their Chinese counterparts at $393,557.”

There is little doubt that the motivation for the Chinese influx is a Chinese economy which is much weaker than the US economy, and the need for greater export markets, but any of these sellers are like the increased number of sellers from countries like Pakistan, India, Turkey, and Sri Lanka on other internet marketplace are not succeeding.

I too use secondary sources of data for my own analysis of the state of Amazon, including some analysis of the FBA recalled merchandise in liquidation channels and see lack of success of many of the Chinese Amazon sellers.

Much of what the Chinese are shipping to FBA is not selling, and that which is has to offset the losses on liquidation of inventory. It is often cheaper to buy Chinese product from liquidation channels than it costs to make the product.

Its good to keep an eye on what the Chinese are doing here, but it would be far better if the source was more reliable or direct.

[VLT]

This has already been exposed by Chinese sellers explaining seller support is bias by law to support their country. They don’t have the same type of economic market we do here, everything is ultimately owned by the government which is why trademarks don’t really exist. When your seller support, sellers, and manufacturers are all within the same country under untouchable government regulation, it makes it difficult for other sellers living by the rules to compete.