Amazon’s US sellers’ market share has rebounded. Can Chinese sellers reverse the downward trend?

Amazon’s US sellers’ market share has rebounded. Can Chinese sellers reverse the downward trend?

In the five years before 2021, Chinese sellers' market share on Amazon increased year by year, from 16% to 22% in 2017 ; from 23% to 26% in 2018 ; from 26% to 33% in 2019 ; and from 35% to 42% in 2020.

 

As of September last year, the market share of China's top sellers on Amazon was 38%, down from 40% at the beginning of last year. This figure is the average of Amazon's four top markets - the United States, the United Kingdom, Germany, and Japan. It can be seen that the market share of China's top sellers has changed the trend of increasing year by year in the past five years and has begun to decline gradually!

 

At the same time, top U.S. sellers on Amazon have been increasing their market share for more than a year , reversing a years-long trend dominated by Chinese sellers.

 

Currently, 55% of the top third-party sellers on Amazon’s U.S. marketplace are domestic businesses, a significant increase from the all-time low of 48% in November 2020. U.S.-based sellers have been increasing their share over the past sixteen months, after a steady decline in the past few years.


(Top Amazon sellers in the United States)



According to Marketplace Pulse data, this trend is not limited to top sellers. Some small and medium-sized sellers in the United States have also been increasing their estimated sales share since the end of 2020. Although the market share fell below 50% at that time , it has now recovered well.

 

The epidemic blockade, supply chain issues, seller closures and Amazon FBA inventory restrictions are some of the reasons that have affected the decline in market share of Chinese sellers . Recently , the number of new seller registrations from China has also decreased, accounting for only 75% of all new sellers . In addition , Chinese sellers’ market share in the UK, Germany, Japan and other Amazon markets is also declining.

 

Marketplace Pulse said that in addition to the reasons mentioned above, it is not clear what else is affecting this trend. The key is whether this trend will be reversed . However, the direct sales business "from China to consumers through Amazon" has not been interrupted, and Chinese sellers still have strong development momentum .

 

Before 2020, Amazon's future market seemed to have little room for growth for US sellers. Because every year, their market share was decreasing. But now, some of these factors have slowly faded .


Amazon

Chinese Sellers

market share

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