Amazon without China will Disappear

21/02/2019

On Amazon marketplaces 40% of sellers are based in China. Third-party sellers from China dominate Amazon’s apparel offerings. Why China is vital for US based e-commerce giant business?

 

Amazon without China, and without Chinese sellers, will disappear. This is not a provocation, not at all, is just the truth. According to data, Amazon marketplaces 40% of sellers are based in China while third-party sellers from China dominate Amazon’s apparel offerings. And now Chinese sellers and building brands on Amazon.

Last year, more than ten thousand Chinese sellers attended the 4th annual Amazon Global Store Seller Summit – 年亚马逊全球开店卖家峰会. The event held in Ningbo, Zhejiang province, last December 6-7th. Twice as many are tuning in into the live broadcast online.

The importance of China to Amazon has increased over the past few years. During the last two years the number of successful sellers from China on Amazon has doubled. The Global Store Seller Summit event is a great example of why.

 

In two years the number of successful sellers from China on the Amazon marketplace has doubled. 36% of the top sellers are now based in China, up from 15% two years ago.

 

US based giant e-commerce platform data shows that Chinese sellers will create a new product on Amazon every 0.02 seconds, 60% of Chinese sellers’ sales come from new products created in the past 12 months, and for Chinese sellers nearly 50% of the top 10,000 hot-selling items in sales are from new products created in the past 12 months.

Actually, China is leading apparel sector on Amazon. Amazon’s top five apparel “brands” sell unbranded clothes shipped to consumers from China. One such brand, listed on the site as WSPLYSPJY, alone makes up 8.6% of all Amazon men’s and women’s clothing listings.

The dominance of these apparel brands on the site, despite their weeks-long delivery time, suggest that Amazon itself adds credibility to unknown third-party sellers. For example WSPLYSPJY had more than 96,000 items listed on the site in September — 60,000 more than the second place seller, which also ships from China and third-party sellers represent 90% of Amazon’s fashion offering and the dominance of some of these “non-brands” cannot be overstated.

Data revealed that e-commerce shoppers are concerned with “fast and free” shipping, but now Chinese sellers are convincing Western customers how their products are improving in quality. 

 

Alibaba is fighting counterfeit products more forcefully than Amazon, according to Swatch CEO Nick Hayek.

 

“If I look what Alibaba is doing and all these they are trying to make a service to the consumer and to earn money. And they are fighting actively against fakes. This Amazon is not doing,” Hayek told CNBC in a televised interview last year. Today the new  “Made in China” is giving real high quality product guarantee.

What’s new in the West, is already old in China. Now PRC exports its digital innovations. Are international social networks or e-commerce giang copying Chinese trends? Since Facebook, Amazon and Instagram introduced new e-commerce features, it really looks like it.

Let’s see for example the integration of online and offline. In the west, when Amazon acquired Whole Foods Market, everyone speculated how  combined those two firms : an online brand with a brick and mortar one in order to produce a new generation of digitally-connected retail. Well, that future has already arrived in China years ago.

Alibaba and JD are rapidly opening retail outlets across the country, called Hema and 7Fresh respectively. Both brands offer a wide range of digitally-connected experiential shopping.  First, clients customers can use their phone to scan the barcode of any item in the store to learn about the product’s source, nutritional information and price. Delivery is available at both stores in as little as 30 minutes after consumers have made their purchases. The future of e-commerce and online business is speaking chinese.

The future is in China and today Amazon is just copying Chinese e-commerce trends. Even not talk about how Chinese sellers are the basis of US based e-commerce giant. Without them Amazon will disappear.

 

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