China Courts US Consumers Through a Familiar Storefront in Amazon

Despite fake reviews, China-based merchants make up 50 percent of all Amazon sellers

The Epoch Times

Amazon is the largest and most efficient direct-to-consumer vehicle for Chinese brands to target U.S. and European consumers.

โ€œMade in Chinaโ€ is a phrase with which all U.S. consumers are intimately familiar.

In past decades, that term referred to major branded products sold at U.S. stores manufactured by factories located in China. For example, a Matchbox car bought from Toys โ€œRโ€ Us and made in China by Mattel. Today, U.S. consumers are increasingly purchasing Chinese-branded products from Chinese stores directly over the internet, and both Beijing and the worldโ€™s largest online retailerโ€”Amazon.comโ€”have been facilitating that trend.

Half of Amazon Sellers Based in China

On Amazon, 50 percent of all global sellers are based in China, according to data from Marketplace Pulse, a website that provides e-commerce market data. Those sellers store their goods and products in the United States at Amazonโ€™s warehouses, so the items are shipped domestically and qualify for fast โ€œPrimeโ€ shippingโ€”also dubbed as the โ€œFulfillment by Amazonโ€ program.

Chinese sellers make up the highest percentage of all sellers on Amazon.es, the companyโ€™s Spanish retail website, at 64 percent. More than 50 percent of Amazonโ€™s French, Canadian, and Italian sites are Chinese sellers, highlighting a dearth of domestic e-commerce companies within those countries. Amazonโ€™s U.S. website is made up of 44 percent Chinese sellers, meaning the majority of sellers on the U.S. website are based in the United Statesโ€”for now.

But the U.S. trend is also shifting. More than 60 percent of new sellers on Amazonโ€™s U.S. website in January 2021 were from China, compared to less than 40 percent in January 2020, according to Marketplace Pulse data. Globally, Chinaโ€™s share of new sellers is even higher, 75 percent, for Amazonโ€™s websites as a whole.

While these raw numbers could be skewed because some sellers maintain multiple selling accounts, the directional trend is clear: Amazon is the largest and most efficient direct-to-consumer vehicle for Chinese brands to target U.S. and European consumers. And China is the worldโ€™s biggest factory and arguably has the highest e-commerce adoption. On paper, it shouldnโ€™t be shocking that many products on Amazon are from China.

But thereโ€™s a transparency concern. Since the sellers all market their products on Amazonโ€™s local e-commerce websites, consumers may be unaware that theyโ€™re purchasing their products directly from Chinese stores.

BYย FAN YU

Read Full Article on TheEpochTimes.com

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