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In just the first half of 2021, almost $6 billion has been raised by aggregator businesses, observed Juozas Kaziukėnas, the founder of ecommerce research firm Marketplace Pulse. Flush with cash, these acquirers are increasingly on the hunt in China. "At a certain size of an aggregator ... it started to make sense to expand your view into looking at sellers globally. Because for an aggregator, the most important thing is where they are selling, not where they are based," Kaziukėnas told Protocol.

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Walmart has more than 85,000 sellers, according to Marketplace Pulse, compared with roughly two million active sellers on Amazon.

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China and the US account for around 90% of all sellers on Amazon in the US. Excluding China and India, sellers in the rest of Asia Pacific account for a mere 2.4% on Amazon US, according to Juozas Kaziukenas, founder and CEO of e-commerce tracking service Marketplace Pulse. Of that number, few make at least $1 million in sales a year, he added.

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The cost per click for Amazon search advertising was $1.16 in May, up from 75 cents a year earlier, according to Marketplace Pulse.

“Prices will continue to rise over time,” said Juozas Kaziukenas, founder and chief executive officer of Marketplace Pulse. “Smaller brands trying to enter the market, it will be increasingly expensive to do it when they are up against established brands who are willing to pay to protect market share.”

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Insgesamt scheint Walmart mit der Seller-Akquisitions-Offensive bislang sehr erfolgreich zu sein, denn innerhalb eines guten Jahres hat sich die Zahl der Marktplatzhändler nach Erhebungen von Marketplace Pulse mehr als verdoppelt: von 39.000 im März 2020 auf aktuell 92.656. Alleine im Mai sollen rund 4.400 Seller dazugestoßen sein.

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“Clothing resell, used guitars, handmade wooden coasters might not have too much consumer overlap so it makes sense to keep them as separate platforms,”Juozas Kaziukėnas, CEO of research firm Marketplace Pulse, said in an email.”But I do wonder when it makes sense for Etsy to expand the core product rather than expand vertically.”

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For most of 2020, face masks were the No. 1 most-searched products on Amazon. As of May 15, they had dropped to No. 50 in the search rankings, said Juozas Kaziukėnas, founder and CEO of e-commerce business intelligence firm Marketplace Pulse.

“Face masks have been one of the most in-demand products on Amazon since January 2020,” Kaziukėnas said.

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And there is a good chance that those suspended companies have been cheating at reviews for a long time, Juozas Kaziukėnas, the founder of e-commerce research firm Marketplace Pulse, told me.

Kaziukėnas also suggested that it may be time to stop using reviews as a go-to way to gauge other people’s opinions on products or services. “It’s the internet,” he said. “Nothing is real on the internet.”

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For several years, Mpow has consistently had 10 of the top 100 most popular headphone products on Amazon, according to the e-commerce research firm Marketplace Pulse.

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Analysts have estimated that the share of Chinese merchants represented 75% of Amazon’s new sellers in January, up from 47% the year before, according to Marketplace Pulse, an e-commerce research firm.

But the get-rich-quick optimism among the cross-border community came to a halt when several top Chinese sellers disappeared from Amazon over the past few days. At least eleven accounts that originate from Greater China were suspended, according to Juozas Kaziukenas, founder of Marketplace Pulse.

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In January, China-based sellers represented 75 per cent of all new merchants on Amazon, according to a recent report by consultancy Marketplace Pulse. The share of China-based sellers on Amazon’s US site has surged to 63 per cent this year from 28 per cent in 2019.

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“It’s perhaps the only way to answer the question: ‘Is the address you told us an address you have access to?’” said Juozas Kaziukenas, CEO and founder of Marketplace Pulse. “Otherwise a seller can enter any address, and there isn’t a way to answer the same question, especially for international sellers. Amazon does require bank statements and other documents for new sellers with an address that matches what you submitted, but this is taking it further, and for old sellers.”

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Amazon’s total gross merchandise volume in 2020 was about $490 billion. According to Marketplace Pulse, $300 billion of that came from third-party sellers.

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The companies they're starting, known as Amazon aggregators, have received a whopping $4.1 billion of debt and equity funding since March of last year, estimates e-commerce data firm Marketplace Pulse.

"The next 12 months the industry will shake out and some of the companies will end up shutting their doors,” said Juozas Kaziukėnas, CEO of Marketplace Pulse. He predicted that some will not last a year. “A lot of the money these companies are getting is through debt rather than equity. The debt has to be paid, so if they can’t acquire sellers fast enough, I’m not sure how you’re going to pay the bills.”

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Walmart won't disclose figures, but according to e-commerce data firm Marketplace Pulse, it had fewer than 7,000 sellers at the beginning of 2017. Since then, Walmart has added around 80,000 merchants.

Going after more sellers could come with risks. In particular, the move to open its platform to sellers outside the US could expose Walmart to more fake and poor-quality items, Juozas Kaziukenas, the founder of Marketplace Pulse, said. The US Government Accountability Office said in a 2018 report that 88% of counterfeit goods in 2016 arriving in the United States came from China and Hong Kong.

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“It creates excitement out of nowhere, right out of a vacuum,” Marketplace Pulse founder and CEO Juozas Kaziukenas said about Prime Day.

“People will just buy more things ... and maybe it is a good time to do it in June, earlier,” he said. “Because there’s a lot of excitement about things getting back to normal, and people probably are going to be buying more clothing items and more travel-related items — that they have not been buying for a very long time.”

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“I would imagine Pakistan is a few years behind China in terms of expertise in selling to the West directly,” said Juozas Kaziukėnas, founder and CEO of the e-commerce research firm Marketplace Pulse. “The explosion of Chinese sellers came in 2015 and is still continuing, but that is a snowball effect that was accelerated by successful local sellers, local support, etc.”

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Juozas Kaziukėnas, founder and CEO of Marketplace Pulse, describes those brands as the "Amazon seller 3.0." Instead of reselling or slapping a name onto a generic product easily sourced online from overseas, Amazon-native brands have been looking to differentiate themselves with designs, trademarks, patents and the like.

In other words, they are trying to make a product that can't be "blindly replicated by someone going to Alibaba.com and sourcing a product," Kaziukėnas said in an interview.

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Today, nearly two-thirds of sellers on Amazon.com in the U.S. use FBA, according to Marketplace Pulse, a research firm.

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Walmart Marketplace grew to an estimated 70,000 sellers in 2020, fueled by a surge in online shopping due to the Covid-19 pandemic and a series of investments in technology and vendor relationships reported here for the first time. That is expected to rise 146% by the end of 2022, according to projections by data firm Marketplace Pulse that have not yet been published.

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