Amazon's U.S. marketplace continues to be the most conducive environment for new sellers to achieve their first sales, with over 73% of sellers who registered in the past 12 months going on to make sales.
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Amazon sellers now face less competition than in 2021, with over 30% more traffic per active seller available across its global marketplaces. The competitive shift provides a notable counterbalance to Amazon's maturing marketplace challenges.
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Booked shipping volumes from China to the U.S. have plummeted by almost 60% in recent weeks as carriers blank sailings on a scale not seen since COVID. As trade restrictions now ease, pent-up demand will send container rates rising again, echoing post-pandemic trends.
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The newly heightened tariffs on Chinese imports should theoretically benefit American businesses. However, paradoxically, they will have the opposite effect, further cementing the dominance of Chinese sellers in American marketplaces.
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The e-commerce industry is bracing for impact as U.S.-China trade tensions intensify. Following the introduction and rapid escalation of reciprocal tariffs on Chinese goods by the Trump administration, the expected impact on tariff income, shipment volumes, and price trends has not yet taken hold, but will soon.
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Temu and Shein are rapidly losing their dominant positions in U.S. app stores as the May 2nd de minimis exemption suspension approaches - a clear signal that the direct-from-China shopping revolution is facing its first real market correction.
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Aggressive China-specific tariffs announced and rapidly escalated by the Trump administration will not reverse the fundamental dynamics that have led Chinese sellers to dominate U.S. e-commerce marketplaces. Historical evidence shows they simply make products more expensive for American consumers.
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Over 60% of the current top 10,000 sellers on Amazon.com registered on the marketplace before 2019. Despite thousands of new sellers joining daily, the marketplace elite remains largely stable, with pre-2019 cohorts maintaining their dominance.
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Japan is the only remaining established Amazon marketplace where local sellers represent the majority, with 54% of active sellers being Japanese businesses. This stands in stark contrast to most other Amazon marketplaces, where Chinese sellers increasingly dominate and local seller representation continues to shrink.
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Amazon continues to add international marketplaces, but most sellers aren't following them across borders. Despite Amazon's efforts to make global selling easier, nearly 70% of sellers remain active in just one marketplace.
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