Domestic sellers in the United States (US) have reached their lowest market share on Amazon, with Chinese sellers becoming the biggest winners on the American site.
According to Marketplace Pulse research, only 48% of the largest third-party sellers on Amazon’s US marketplace are American companies, the lowest percentage ever. The latest high was 55% in March 2022.
The majority of sellers on the Amazon US platform are domestic or Chinese companies (with a relatively smaller presence in other countries). Chinese sellers have been increasing their market share on Amazon for years, but in November 2020, US sellers reversed the trend and began to gain market share, perhaps due to quarantine, supply chain issues, seller suspensions, and Amazon.FBA closures. However, this reversal stopped in March 2022, and Chinese sellers have since regained lost market share and reached new highs in recent months.
As a result, US sellers have hit a record low market share on Amazon.
Why are Chinese sellers dominating Amazon?
There are a number of reasons why Chinese sellers are dominating Amazon. First, they often have lower costs of production and labor, which allows them to offer lower prices to consumers. Second, Chinese sellers are often more willing to invest in paid advertising on Amazon, which helps them to reach more potential customers.
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US sellers lose Amazon market share to Chinese sellers, hitting record low.
American sellers vs Chinese sellers on Amazon