Today we are witnessing a real rise in power of Chinese Amazon sellers, who are gradually flooding the marketplace. 40% of the best Amazon sales are based in China compared to 26% 2 years ago (source Marketplace Pulse). These new sellers are gaining ground at high speed and are determined to become the world leaders in terms of market share. An alarming finding that should encourage European brands to establish themselves on Amazon.
After 10 years of failed attempts, Amazon has failed to compete with its Chinese rival, AliExpress, with Asian buyers, and has gradually decided to abandon this market.
However, electronic commerce has also exploded in China and Asian sellers have understood the global potential of the marketplace in terms of market share. Many Chinese companies are now using Amazon as an intermediary to sell their products.
In one year, the market share of sellers based in China increased from 28% to 34% on Amazon.co.uk (United Kingdom), from 26% to 28% on Amazon. from (Germany), from 41% to 45% on Amazon.it (Italy), from 48% to 52% on Amazon.es (Spain) and from 41% to 47% on Amazon.fr (France).
In the United States, the share of Chinese Amazon sellers represents at least 40% or more.
Last year, only 11% of new sellers on Amazon.co.uk were from the UK. The majority came mainly from China. The same observations are made on other European marketplace platforms, Chinese Amazon sellers are gaining ground.
This success comes in part from the Fulfillment by Amazon (FBA) system, which now allows international sellers to improve their shipping time and conditions. This service helps to reach more customers as it provides access to Prime fast delivery and simplified international sales. Sellers send their products and Amazon takes care of storage, delivery, customer service and returns management.
In December 2018, at the 4th annual Amazon Global Store Seller Summit, Amazon also announced the launch of a new loan service dedicated to Chinese Amazon sellers, which could have an effect most spectacular on their expansion, in the world.
In addition to the harmful competition for the European market, the rise in power of Chinese Amazon sellers reinforces the presence of poor quality counterfeit products on Amazon. Worse still, this could in the long term weaken the confidence of buyers towards the products present on the marketplace. European know-how is an asset to be valued on a global scale. Amazon is a great way to get you known by international buyers, and to improve your brand awareness.
An additional argument to establish your brand on Amazon, and maximize your profits.
Jun 13, 2019
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Whether you're already a seller on Amazon or want to become a seller, you're going to question the added value of an Amazon marketing consultant. We discuss it.