75% of new sellers on Amazon are from China
China-based sellers represent 75% of new sellers on Amazon in 2021, according to a report by Marketplace Pulse. This marks a significant increase from 47% in the previous year.
While this hasn’t yet impacted the GMV (gross merchandise volume) market share – domestic sellers are still responsible for most of the total sales – it is a trend that has been accelerating for years.
Amazon is the most efficient direct-to-consumer platform for Chinese brands to reach U.S. and European shoppers, writes Ecommercetimes. With both pricing and product offerings they create a serious challenge for domestic sellers and especially manufacturers.
On the other hand, lack of knowledge in some of the key areas, such as understanding of local preferences, creation of appealing listings and promotion techniques prevent Chinese sellers to take the upper hand in the competition.
One thing the Chinese are particularly good at is bringing products to market at lightning speeds due to Shanzhai business model. Generally speaking, launching a new product in the U.S. can take anywhere from six months to two years, but Chinese sellers can bring a product to market in less than 90 days.
Because of such quick speed to market, Chinese sellers will continue to impact the Amazon ecosystem solely through the sheer number of products being sold on the platform.
More Amazon news
Amazon sues “get rich quick” FBA course sellers
Amazon sues coaches for selling deceptive courses of no valueAmazon started suing people and companies for selling courses on how to make money on Amazon.Amazon filed suit against Online Secrets, Prime Global Source, Michael Gazzola, Matthew Behdjou and...
Amazon Will Impose Stricter Storage Limits in January
Amazon Wants Sellers to Optimize Warehouse Space Amazon will impose stricter storage limits on sellers who use Fulfillment by Amazon in January. The reason for the policy change is the company's push for faster delivery - specifically, transitioning Prime...
Paypal to enter Chinese market for online payments
PayPal is the first foreign company to win Chinese payments licensePayPal has become the first foreign company to acquire a payments licence in China, after buying a majority stake in GoPay. GoPay has licenses for online and mobile transactions, and...