Amazon adds 2,000 new sellers per day, but Wish is tightening the entry of sellers

As the world's largest cross-border e-commerce platform, Amazon attracts a large number of sellers every year.

Amazon adds 2,000 new sellers per day

According to the latest survey report from Marketplace Pulse, a research organization , more than 2,000 new sellers have joined Amazon's various sites every day since 2016. Among them, the Meiya site has an average of more than 700 new sellers per day .

It is worth noting that this data counts unique sellers (if a seller sells on multiple sites, it is only counted once). This is because on the Amazon platform, there are many sellers selling on multiple markets, especially on sites in Europe .

Although many of the new sellers have never used their accounts after applying, statistics show that an average of more than 800 new sellers get their first buyer review on Amazon every day . This level has remained stable since 2016.

Changes in the number of Amazon sellers getting reviews for the first time

The influx of a large number of new sellers is a double-edged sword for Amazon. The more sellers that flock to the platform, the more resources Amazon must spend to verify the identity of sellers, handle more questions about sellers, and manage sellers.

According to a previous survey by Marketplace Pulse, Amazon has about 6 million third-party sellers worldwide and nearly 10 million seller accounts. With such a large scale, it is impossible for employees to handle it directly. Therefore, most of Amazon's third-party seller management work is done through automatic programs and machines. This naturally cannot avoid misjudgments, which is also the reason why many sellers are often "accidentally injured" and have difficulty in appealing.

Thousands of new sellers are pouring in every day, which means more products will be added to the Amazon platform. However, no matter how many products there are in a category, buyers tend to only pay attention to the top-ranked products. For example, when searching for products, buyers tend to only browse the products on the first page of search results. Therefore, in order to occupy the top search rankings, sellers will take various measures, which exacerbates the internal competition of sellers. Amazon platform makes a lot of money through paid advertising.

In recent years, Amazon has tightened its identity verification for sellers. Despite this, the growth rate of sellers on Amazon has not slowed down, which proves the attractiveness of the Amazon platform.

It is understood that the number of new sellers added on the Amazon platform every day is equivalent to the number of new sellers added on Walmart's third-party platform in a month, and is even higher than the total number of Target's third-party sellers.

Amazon and Walmart have introduced incentives to attract new sellers

Although the number of third-party sellers varies greatly, Amazon and Walmart have both recently announced their own new seller incentives.

In March, Amazon.com announced the launch of "new seller incentives" with a potential value of more than $50,000, as well as a new onboarding manual for new sellers. In February and April, Walmart announced that it would provide new sellers with limited-time free storage and discounts on delivery fees and commissions.

It is understood that the specific "new seller incentives" on the Amazon platform include the following five points:

If eligible brand stores achieve sales of $1 million, they will receive a 5% bonus.

You can get $200 in Amazon Vine credits. This program invites top reviewers on Amazon to post real product reviews.

$100 credit toward Amazon’s Transparency Program , which helps sellers proactively prevent counterfeits from reaching buyers, engage with customers, improve the customer experience, and identify supply chain flaws.

Benefits available to new sellers who choose FBA include: $100 in credits (deductible when using the Amazon Partnered Carrier Program); free monthly storage, liquidation, and return processing for eligible new-to-FBA products; and a $200 advertising subsidy for new sellers using Amazon SP advertising.

New sellers who adopt the Amazon Coupon Targeted Discount Program can receive a $50 coupon credit.

In order to compete with Amazon, attract more new sellers and improve the competitiveness of new sellers, Walmart has also launched a new seller incentive "New-Seller Savings" for its e-commerce platform .

Sellers who join Walmart Marketplace by May 31, 2022 and start selling on Walmart.com by June 30, 2022 will receive a 50% commission discount in the first 90 days.

At the same time, sellers who are approved to join Walmart WFS can enjoy 90 days of free storage and a 10% discount on delivery fees if they complete the setup process and deliver the goods to Walmart distribution centers before June 30, 2022.

For cross-border sellers, free warehousing, platform commission discounts and delivery discounts in the early stage of entry can greatly reduce the initial investment costs and are very attractive to new sellers.

By tightening the entrance for sellers, is Wish going against the giants?

Unlike giants like Amazon and Walmart , which are frantically recruiting new sellers, Wish has significantly raised the entry threshold for new sellers and implemented an "invitation system" for registration. For sellers who are willing to join the platform, Wish will first conduct a questionnaire survey on the sellers and issue corresponding registration invitations based on the platform evaluation results.

As the world's most downloaded shopping app, Wish can sell 1.8 million products every day. The reason why it can sell so many products is closely related to the platform's early "three lows" standards: low-income market, low-priced goods and low seller entry barriers. However, the platform also suffered from the backlash of the "three lows" standards, which broke the hearts of both buyers and sellers and caused its market value to shrink by 10 times.

Among them, the low entry threshold for sellers has brought a great adverse impact on the platform. The low entry threshold has attracted a large number of sellers to settle in, and the platform has not kept a good check, which has led to the inclusion of some bad sellers. These sellers have taken advantage of platform loopholes to place fake orders, provide counterfeit and shoddy products, etc. , which has greatly affected the user experience of the Wish platform and caused a large number of users to leave. This is also a major reason why the platform is currently raising the entry threshold for sellers.

However, although Wish has implemented an "invitation system" for new sellers, it also has incentive policies for sellers , such as providing cash rewards to sellers with supply chains and allowing sellers to operate multiple accounts.

The different attitudes towards sellers are ultimately caused by different company strategies. Currently, both Amazon and Walmart are in the rising and expanding stages of their businesses. In order to compete for a larger market, it is necessary to attract more sellers to settle in and improve the platform's product supply. However, Wish is currently in a strategic adjustment period. In addition to strategically contracting its business, it also needs to improve the platform's shopping experience. In order to cooperate with the company's strategic adjustments, Wish will implement an "invitation system" for sellers to settle in.

For sellers, improving their competitiveness is the top priority no matter which platform they are on.

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