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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.

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