Amazon's Best Sellers Ranking has remained unchanged for 7 years, and a group of sellers have no choice but to turn to Walmart?

"Is Amazon failing? Place orders! Place orders!! Place orders!!!" Almost every day, Yien.com can see such "roars" in different sellers' circles of friends.

"It's good to have an order ... " Some sellers humbly ask for orders, but the reality is not satisfactory. Is it Amazon or the market that is not good? To verify this problem, many sellers are beginning to flock to other platforms.

A large number of Chinese sellers flock to Walmart

" Amazon is not accepting orders now, and the order volume is stagnant. We have to look at other platforms ." According to En.com, many sellers have started to pay attention to platforms such as Walmart this year.

Marketplace   The latest data from Pulse also shows that in the past year, in 2022, 46.7% of Walmart’s new third-party sellers were from the United States, and the rest were foreign sellers, with Chinese sellers accounting for a huge proportion.

So far, China accounts for more than 90% of Walmart's new international sellers and nearly half of all new sellers . Although Walmart may open more sites outside of India, the United Kingdom and Canada in the future , Chinese sellers will still dominate.

Previously, many sellers complained about the poor experience at Walmart, with no traffic, no orders, and too many platform loopholes, but data shows that sellers are still flocking to this platform.

Ultimately, it is nothing more than poor market performance that most sellers are looking for new ways out, and Walmart, which is accelerating its development in the e-commerce field, has become the sellers' choice.

Moreover, in order to attract more new sellers, Walmart has been lowering its requirements. In February this year, Walmart lifted the annual GMV investment threshold for Chinese sellers .

Initially, when Walmart opened up to Chinese sellers , it preferred large sellers with an annual GMV of 3 million or more. Later, as Walmart opened more e-commerce sites, the demand for more sellers increased, so the entry conditions were relaxed to an annual GMV of more than 300,000 , until this year this GMV threshold was completely abolished .

In fact, data shows that as early as 2017, 30% of Amazon sellers hoped to open stores on Walmart .

In the United States, Amazon is the "king of e-commerce". Although Walmart's online market is not as good as its, many American consumers prefer to buy products at Walmart because of its improved infrastructure such as distribution sites. At that time, Walmart also had a low price advantage, which posed a considerable threat to Amazon's online market. Sellers believe that as a leader in the US retail industry, Walmart's traffic will not be very low and can bring sellers more sales.

Now, Walmart has entered the online market in an attempt to share this "fat meat". Although many sellers have complained about Walmart, there are also some big sellers whose sales on Walmart far exceed those on Amazon.

A seller who has already settled in Walmart told Yien.com, "Walmart is so large in size and is a top-tier player in the U.S. retail industry. The advantages are too attractive."

As market competition becomes increasingly fierce , Walmart is expected to continue to focus on recruiting Chinese sellers and release more favorable policies. In addition , as sellers pay more and more attention to multi-platform layout, Walmart will become another important platform for sellers in the future.

20% of sellers have dominated the BSR list for 7 consecutive years. Do sellers have to seek change?

Perhaps, in addition to curing "Amazon addiction" and reducing business risks, the continuous influx of Chinese sellers into Walmart is also a "forced" choice.

The latest data from Marketplace Pulse shows that among the top 10,000 sellers on Amazon US , 20% of the sellers have topped the BSR list in their respective categories for more than seven consecutive years , and category sales have maintained steady high growth.

At the same time, the other 80% of sellers failed to maintain their No. 1 position for a long time in the face of various challenges. When most of the market share of a category is occupied by a single seller for a long time, it means that the living space of new sellers is constantly squeezed , and some sellers have almost no chance of "coming out" .

In addition, with the recent intensification of global macroeconomic uncertainty, sellers' sales performance is worse than before . On Amazon, sellers are not only facing a double-sided attack from new and old competitors, but also have to deal with the frequent increase in multiple fees on the platform. Logistics costs alone have increased by more than 30% (from 2020 to the time of publication) . Cost pressure continues to increase and profit margins continue to shrink.

In addition to cost issues, many of Amazon's rules are becoming increasingly stringent , such as account review , inventory capacity restrictions , and mandatory pricing .

The " exit " from Amazon did not start just now. Many sellers were seriously injured in the "account blocking wave" in 2021. Even big sellers like Youkeshu were hit hard and are still struggling to save themselves.

Will sellers really flee Amazon forever? Obviously, it is unlikely. As the largest e-commerce platform in the United States, Amazon's market size and traffic are far beyond the reach of other platforms. Therefore, a large number of new sellers have been pouring into Amazon's US site.

Marketplace Pulse data also shows that 60 % of the top sellers in 2015 are still active on Amazon .

Although the top sellers account for most of the market share, Amazon's overall market GMV is also expanding, and there is still plenty of room for new sellers to grow. In some categories, there may be saturation or monopoly, but overall, Amazon's entire market is expanding faster than any one seller.

" It's impossible to keep living off the old products. The market is so tough now. If the products are not updated in time, they will be eliminated. " An Amazon seller admitted, "But it's unrealistic to completely break away from Amazon. No other platform can match Amazon."

Obviously, "escaping from Amazon" is more often just on the lips of sellers. Currently, sellers choose Walmart and other platforms for multi-platform layout, which is also a major trend of cross-border e-commerce companies, and it is not unreasonable for Walmart to enter the vision of sellers.

In terms of e-commerce revenue alone, Walmart is now the second largest e-commerce company in the United States . In the fourth quarter of last year alone , Walmart's e-commerce sales in the United States increased by 17 % year-on-year .

As an e-commerce platform still in its infancy, Walmart is very friendly to sellers and has repeatedly launched various preferential policies and support policies. In addition, it is also constantly improving its e-commerce sector, such as launching a WFS distribution plan similar to Amazon FBA , shortening the entry time of WMC (Walmart Advertising) and WFS , and carrying out a series of online promotional activities .

Some sellers move from Amazon to Walmart, and some sellers move from Walmart to Amazon. Data shows that about 35% of Walmart 's active sellers have joined Amazon . This shows that sellers are eager to have a multi-platform layout, and as the leading platforms in the United States, Walmart and Amazon are naturally the platforms that sellers focus on.  

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