Cross-border e-commerce is no longer a new term. Among the many cross-border e-commerce platforms, some new sellers are hesitating about which platform to choose. Cross-border e-commerce is becoming increasingly difficult to do, which is the general feeling of most sellers. There are more and more platforms, such as Amazon, AliExpress, eBay, Wish, Lazada, CDiscount, Shopee, Linio, Tophatter, etc., which give sellers many opportunities to choose platforms. So is it easy to open a store on Amazon now? Next, let’s analyze it together with the editor.
As we all know, Amazon is the world's largest e-commerce platform, leading the way in both traffic and scale. Amazon's global store project has experienced several years of development in the country and is gradually becoming a red ocean to a certain extent. But if you ask, it’s 2018 now, is it too late to start Amazon? Think about it, the same question has been asked by someone two or three years ago. In 2015, some people asked if it was too late to start doing business on Amazon. In 2016, some people asked again, it seemed that all the sellers on Amazon were Chinese. Am I too late? Let’s first look at the top 20 global shopping websites on SimilarWeb. Half of them are Amazon.
If I have to give a clear answer to the top 20 global shopping websites on similarweb, I would say: Amazon is still the most suitable cross-border e-commerce platform for Chinese sellers, and it is the right time to open a store on Amazon!
When I say this, I may be scolded. Because there are a large number of Amazon sellers who are still working hard on Amazon's major platforms. They have tried all kinds of fake orders, off-site traffic diversion, and black technology, but there has not been much improvement and the results are very limited. I attended wave after wave of Amazon summits and received training on how to create hit products, but after working hard for a year, I didn't make much money.
Don’t be impatient, let’s take a look at the data analysis of Marketplace Pulse first.
Marketplace Pulse is an e-commerce data company that collects millions of data points on e-commerce marketplaces such as Amazon, eBay, Walmart, Etsy, Alibaba, Rakuten, and others. Helping companies understand and develop the e-commerce market through analysis of data tags, using data to identify the future of the retail industry.
The number of Amazon sellers with sales exceeding $100,000 from 2015 to 2017 was counted, with 100,000 in 2017, an increase of 40% to 140,000 in 2017.
The number of Amazon sellers with annual sales exceeding $100,000: 70,000 in 2015, 100,000 in 2016, and 140,000 in 2017. In the past three years, the number of sellers with sales exceeding $100,000 has increased at an annual rate of 30-40%.
As of February 26, there were 163,144 new sellers added to the Amazon marketplace this year, which is equivalent to 2,913 new sellers added every day. The largest growth rates are seen in the United States, India, and Germany, and 10% of the new sellers already have feedback reviews.
Chinese sellers have a 38% market share on Amazon, and the average proportion of all sellers using FBA is 52%. More than 75% of Chinese sellers use Amazon Logistics (FBA). Payoneer interviewed 900 Chinese sellers and found that 62% of respondents sold on Amazon. Of this 62%, 91% sell in the United States on Amazon.
All the above data can be obtained from marketplacepulse. If you are interested, you can look it up yourself. After saying so much and looking at so much reference data, have we restored some confidence in the Amazon platform?
As for what Amazon does and how to do it, I am not a first-class expert, nor am I qualified to give advice here. Many sellers do not perform well for various reasons, not because they don’t work hard. Many times, the problem lies in product selection and off-site traffic. There are also some sellers who have a weak foundation and are accustomed to following the trend. If you fake orders, I will also fake orders; if you sell this, I will also sell this; if you use black technology, I will also use black technology.
Many sellers who open stores on Amazon take the wrong path from the very beginning. The problem lies in product selection. Selecting products based on feelings and experience will undoubtedly increase business risks. As MarketplacePulse explains, we use data to identify the future of retail.
When selecting products on Amazon, it is also necessary to rely on data analysis rather than subjective judgment. Jungle Scout is the Amazon product development data analysis tool most used by foreign Amazon sellers. It uses big data to analyze Amazon product sales volume and rankings intelligently. It has accumulated experience from more than 100,000 Amazon sellers and is much more outstanding in both data analysis and derivative functions.
Before opening a store on Amazon, I personally recommend that you use the Jungle Scout software to analyze product data, do your homework, and reduce the risks of opening a store on Amazon.
