40% of the top sellers on Amazon are based in China, up from 26% two years ago, according to Marketplace Pulse research. For Chinese retailers and manufacturers, Amazon is the most efficient direct-to-consumer platform to reach the US and European shoppers.
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After a decade of trying Amazon is giving up on the one market it failed to grow. However, while Amazon struggled to grow, not only has China e-commerce exploded in growth, so has the number of successful businesses from China selling through Amazon.
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More than ten thousand Chinese sellers are attending the 4th annual Amazon Global Store Seller Summit. Amazon's message in China is simple: innovate on great products, expand worldwide, and build brands. And it's working.
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Wish is a mobile shopping app for customers whose first priority is low prices. The app sells a few billion dollars worth of products a year by enabling merchants to sell directly to consumers. According to our research 94% of the growing list of merchants are based in China.
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It took less than a year for the Amazon marketplace to grow by one more million new sellers. That's 3,398 new sellers every day, or 141 every hour, or more than 2 every minute. Unsurprisingly, most of the new sellers are based in China.
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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.
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Customers, and the media talk a big game about manufacturing ethics, and the pressure on local retailers. And then they want a $9.99 t-shirt. Ethical supply chain is good, fast shipping is better, low price is best.
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Physical goods are rarely made in the US. Often the country of origin is China. China has been exporting goods to the US for decades, but now Chinese manufacturers want to sell direct-to-consumer. Marketplaces like Amazon are a perfect avenue.
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Singles Day shopping event in China, which happens every year on November 11th, is like no other shopping event. In fact, it is the largest shopping event in the world. Many times larger than the Black Friday and Cyber Monday combined are in the US.
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It would be interesting to ask how many people inside Walmart, and Amazon have used, and understand Snapchat. And by induction how many understand the people who do. Because the new generation, for whom Snapchat is the most used app, will be shopping differently. There is not going be innovation in e-commerce if the people building it don't understand their users.
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