Articles

Many of the top Amazon third-party sellers have been at the top for nearly a decade. They persevered despite growing competition, increasing fees, and other headwinds.

Amazon has made approximate sales for each product public on its website and app. The new metric is social proof that helps popular products stand out.

First, “Made in China.” Retailers went to China to outsource manufacturing. Second, it was “Sold by China.” Chinese manufacturers sold through Amazon. Now, third, “Marketed by China.” Chinese companies are running vertically integrated retailers.

Four years since its launch, Target's third-party marketplace has just 650 sellers. Target only accepts carefully selected sellers; thus, its marketplace remains the most coveted.

Shein and Shopify were the biggest e-commerce winners in 2022. Their sales are still significantly above pre-pandemic levels too. Etsy was strong, Walmart with Amazon did okay, and eBay struggled the most.

Amazon is pocketing more than 50% of sellers' revenue - up from 40% five years ago. Sellers are paying more because Amazon has increased fulfillment fees and made spending on advertising unavoidable.

Shein will likely launch a marketplace in the U.S. after testing the model in Brazil and Mexico. The number one most-downloaded shopping app in the world is expanding beyond fashion and local manufacturers in China.

Amazon's growth in 2022 was nearly flat. That never happened before in its quarter-century as an online retailer. However, Amazon's results illustrate macro movements in online shopping rather than Amazon's underperformance.

Buy with Prime fees are 20-40% per transaction, or even more for items below $20 due to the $1.50/order minimum Prime service fee. Yet, fees are not as critical as whether Buy with Prime is worth the operational investment.

Amazon is turning its Fulfillment by Amazon (FBA) service into an auction, where sellers can bid for extra capacity beyond inventory limits set by Amazon. It is launching overhauled capacity limits starting March 1st, 2023.