Amazon's new seller data is out! What challenges will Chinese sellers face?

Recently, e-commerce market research company Marketplace Pulse released a latest research report , which mainly focuses on newly registered sellers on Amazon in 2022.

According to the report , Pakistan ranks third in the number of new sellers joining Amazon's US market in 2022 , with the United States and China ranking first and second respectively . Although it cannot be compared with the United States and China, the number of Pakistani sellers has far exceeded other countries , including India , an export center, and neighboring countries such as Canada and the United Kingdom .

It is reported that since Amazon announced the opening of entry rights to Pakistan in May 2021, thousands of sellers from Pakistan have successfully registered on Amazon and started selling products . Among them, cotton textile production and clothing manufacturing are Pakistan's largest export industries.

Currently , Pakistan has the largest group of Amazon sellers in the world , such as the "eCommerce by Enablers" group with more than 1.2 million members, "Extreme Commerce by Sunny Ali" with more than 1.1 million members, and "Ecommerce Success Pakistan" with nearly 200,000 members.

It is understood that in May 2021, Amazon opened up settlement rights to sellers from 85 countries, mainly concentrated in Central Asia, the Middle East, South America and Africa . This undoubtedly added many competitors to Chinese sellers.

Data shows that third-party sellers on the Amazon market had sales of $390 billion in 2021, a net increase of nearly $90 billion in one year and doubling in two years - from $200 billion in 2019 to $390 billion in 2021. Sales of third-party sellers account for as much as 65% of Amazon's total GMV .

In recent years, Amazon's sales growth has increasingly relied on third-party sellers . New sellers continue to pour in and old sellers are leaving , but the rate of entry still far exceeds the rate of loss.

Last year, Amazon’s account ban wave hurt many Chinese sellers. Statistics show that the total annual sales of “ banned ” sellers on Amazon , including Chinese sellers, exceeded US$1 billion .

After the wave of self-banning , Chinese sellers gradually lost market share on the Amazon market . After years of increasing market share , this trend was "forcibly" reversed. Previously, Chinese sellers' market share of best-selling products on Amazon increased year by year: 2017 ( 22% ), 2018 ( 26% ) , 2019 ( 33% ) , 2020 ( 42% ). In 2021, it dropped sharply to 33% .

Amazon's sales in its global market mainly come from sellers in the United States, followed by sellers in China , and other countries together account for only a small percentage. However , after Amazon blocked some Chinese sellers' accounts in May last year and opened up sellers' access to Central Asia, the Middle East, South America and other regions, the living space of Chinese sellers has been gradually squeezed .

At the same time, since the opening of global access rights, Chinese sellers have gradually occupied Walmart's e-commerce market .

The economy is in recession, consumption is suppressed, and the "leftovers" are being snatched away. Chinese sellers must not only adjust their mindset to adapt to the overall environment, but also have insight into market trends in order to stabilize sales and strive for growth among many latecomers.

Amazon

Seller