Amazon attracts Direct Sales from Chinese Manufacturers: resentment To U.S. Sellers

November 12 news, according to foreign media reports, the U.S. e-commerce company Amazon attracted more Chinese sellers into the platform. It sells cheaper goods, but it has caused resentment among third-party sellers in the United States.

Amazon attracts Direct Sales from Chinese Manufacturers Low Prices To U.S. Sellers

Amazon, which has been hoping to gain a foothold in China for years, stopped running its domestic market in July. It seems that Amazon has lost in China, but in fact it has more business in China than ever before, and it has been actively recruiting Chinese manufacturers and businessmen to sell to overseas consumers.

According to Marketplace Pulse, a research firm, 54 per cent of the 1934 sellers with identifiable addresses came from China. At a conference last December, Amazon officials showed slides that showed a list of new products being uploaded to Amazon from China every one-and-a-half seconds.

Chinese factories are also squeezing middlemen’s margins on third-party platforms such as Amazon. Some U.S. sellers worry that the next step will be to close the store.

Tony Sagar began to notice this effect around 2015. His company, Down Under, in Mississorga, Ontario, has been selling goose down duvets on Amazon since 2014, with a large version priced at $699. Then, products from Chinese competitors went on sale, and duvets sometimes cost only one-sixth as much as their stake. To his consternation, he bought one and disassembled it, finding it cheap duck velvet.

At the same time, Amazon is expanding a campaign launched around 2013 urging Chinese companies to sell goods directly to overseas consumers. At a conference in 2017, Alicia Liu, Amazon’s sales director, said she was leading a Chinese team to promote her previous experience of removing middlemen from Wal-Mart’s supply chain: “We help factories open stores directly on Amazon and then sell them directly to U.S. consumers.” “This is our value. “

Third-party sellers account for more than half of Amazon’s total physical merchandise sales, and many Chinese businessmen join Amazon’s millions of third-party sellers around the world.

According to Marketplace Pulse, about 38 percent of the 10,000 accounts reviewed on Amazon’s U.S. site are in China, up from 25 percent three years ago.

An Amazon spokesman said 38 per cent “clearly exaggerate the true proportion of the first 10,000 accounts” and that the method was flawed, citing problems with the method of using seller review counts to estimate the ratio in the analysis.

Amazon says it is recruiting sellers in many countries that are at the heart of its goal of “providing cheap goods to its customers”. Amazon says it requires its products to comply with applicable laws and regulations, blocking more than 3 billion lists of suspicious products in all its forms in 2018.

Bernie Thompson, an Amazon seller, says new sellers from China are influencing those who set up operations at Amazon and import products from Chinese factories. Plugable Technologies, based in Redmond, Washington, sells many Chinese-made electronics. Since about five years ago, Chinese manufacturers selling on Amazon have excluded him from certain categories of products, some of which are of his own, he said.

“Amazon is trying to bridge the connection between everyone and make the product as direct as possible to consumers,” he said. “In a way, they are the perfect partner for Chinese companies to do business around the world. “

But a spokesman for Amazon said: “Independent retailers in the US continue to record sales. Amazon said more than 75 percent of the top 10,000 sellers in total sales on its U.S. platform signed up to 2018, and that it spent more on recruiting sellers in the U.S. than anywhere else.

But Mr. Thompson, an electronics seller, says Chinese factories have been steadily pushing him out of the market for low-end products such as USB cables at a lower price than he can afford. He says he now relies on selling higher-end products, such as $199 multi-screen and charging devices, to keep it afloat, but “we have little left in the high end market.”

Amazon says competition is part of the business, and some more mature product categories may be particularly competitive.

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