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e-point International CEO

Which nation will dominate the Amazon e-commerce sellers community?

E-commerce is a global marketplace. Taking into account the origin of the company from the USA, it can be expected that US sellers will continue to dominate in terms of the products offered. On the contrary, new data indicates Chinese dominance.

According to a Marketplace Pulse survey, 40% of the best-selling Amazon products are from China. It indicates an increase from 26% two years ago. Many of these products are electrical devices, especially accessories such as cables, headphones, etc.

Source: The survey conducted by Marketplace Pulse in 2019, the results were published on 11 May 2019.

It is more interesting when we take into account that among Chinese sellers, over 78% use Fulfillment by Amazon (FBA). This figure is more than the average of all sellers - 61%, which means that from an e-commerce client’s point of view it is all the same experience. However, for other “western” sellers it may be challenging to compete with them.

Most Chinese sellers are on the market with 47% of active sellers. Then at 43% and at 42%.

From this data, we can conclude that the upward trend of Chinese domination in the marketplace is maintained. At the end of July 2018, Amazon announced the closure of its domestic e-commerce business in China, and the currently published data confirm the increase in the share of Chinese sellers in the global marketplace.

The Amazon announcement from July 2018: “We are notifying sellers we will no longer operate a marketplace on, and we will no longer be providing seller services on effective 18 July.” Sellers interested in continuing to sell on Amazon outside of China can do so through Amazon Global Selling.

It is particularly fascinating when you consider information from May 2019 regarding the opening of the Alibaba e-commerce markets in Italy, Russia, Spain and Turkey by Aliexpress.

The e-commerce landscape will change significantly in the coming years, the precursors to this change are becoming visible now, and I believe that the change will be highly significant and determine who holds the e-commerce hegemony.