In Amazon's business landscape, every strategic update reshapes the rules of competition. As sellers, we not only participate in it, but also witness the development of it all.

Faced with the challenges of emerging platforms, Amazon is responding through continuous self-innovation. The introduction of new rules and policies indicates that the cross-border e-commerce industry is undergoing a new round of changes.

With over 1.8 million new sellers in two years, is Amazon still attractive?

Amazon continues to attract many new sellers, despite the complex fee structure of its platform. Sellers who need to join the seller exchange group, please contact customer service V: FLA66668888 The upcoming financial report is expected to reflect Amazon's profitability, in which third-party sellers play a key role.

According to a detailed calculation by one seller, Amazon sellers have to face up to 16 kinds of fees, including advertising fees, subscription service fees, inventory-related fees, etc. Despite the large number of fee items, the growth momentum of new sellers remains strong.

According to a research report by Marketplace Pulse, Amazon has added nearly 5 million sellers since 2018, including 1 million and more than 800,000 sellers in 2022 and 2023, respectively. About 40% of these new sellers joined the US market, and the rest expanded to 20 other international markets.

Despite some challenges, Amazon's market leadership remains rock solid. The continuous influx of new sellers reflects the profound influence of Amazon's e-commerce ecosystem. In the face of competition from emerging platforms such as Temu and TikTok, Amazon still maintains its position as an e-commerce giant.

Market data shows that Amazon is expected to account for 40.4% of US retail e-commerce sales in 2024, with sales expected to reach US$491.65 billion. This forecast highlights Amazon's dominant position in the e-commerce market.

Will you choose to hold on, or switch to the "Four Little Dragons"?

Amazon’s new FBA policy has caused many sellers to experience a significant increase in costs since last month, especially an increase in warehousing fees.

Since last month, the costs of most Amazon sellers have risen significantly, and the warehousing configuration fee is another significant expense. A foreign seller said that his performance in March increased by 30% year-on-year, but his profit was 2% less than last year!

The newly introduced low inventory fees are also a headache for sellers. One seller complained: "I am recently troubled by the low inventory fees. The products with the smoothest turnover are just on the verge of being charged according to the company's inventory performance." Although Amazon provides a one-month fee buffer, this is not a long-term solution.

On one hand, the cost is rising, and on the other hand, the competition is constantly pouring in. The combination of the two has forced some sellers with weak strength to exit the market. Sellers who need to arrange off-site promotion of celebrity videos, please contact customer service V: FLA66668888 In order to clear their inventory, some sellers have reduced their prices to a level that only covers the cost, which has had an impact on the sales of other sellers.

Recently, a seller discovered that two of his peers in the same sub-category simultaneously discounted their stock. Previously, the price was $25 to break even, but now it is directly sold at $8. The delivery fee plus commission is close to $8!

There are quite a few sellers like this who are clearing out their inventory at low prices, and most of them are offering discounts based on the price of "commission + delivery fee".

Affected by this, the sales of the link of the seller above were directly cut in half, and what made him even more worried was that the store still had thousands of stocks lying in FBA! In this regard, he said that he could only grit his teeth and bear it.

If they can survive the current difficulties, sellers may have the opportunity to capture market vacancies, but they may also face continued challenges or a decline in market demand.

The backend costs are rising wildly, and the frontend prices are being raised wildly. Are you giving up on this?

This year, products at different price points on the Amazon platform have experienced fierce price competition, and all products from low to high prices are involved.

One seller shared his experience on the forum: "Due to the off-season and the decline in sales in April, I had to bring forward the price reduction originally planned for the end of the year to now. The product that was sold for $16.9 last year can only be priced at $8.9 now."

While competition in the low-priced goods market can be attributed to competition from platforms such as Temu, high-priced goods have also not been immune to the impact of price wars.

A survey shows that the prices of some categories of goods have been reduced from more than 100 US dollars to more than 30 US dollars, even though their cost price has exceeded 100 RMB. Some sellers chose to withdraw from the price war at the right time to avoid greater losses.

Many sellers have adopted a strategy of resolutely not lowering prices in the face of low-price competition. They would rather reduce sales than sell without profit. Some sellers are cautious about participating in price wars with standardized products.

Some Amazon sellers even made shocking statements: Cross-border e-commerce is no longer viable, so they return to their old business and compete in domestic e-commerce. In today's e-commerce environment, switching from domestic to cross-border and then back to domestic may just be a change of position to continue competing.

In the competitive landscape of the e-commerce industry, both domestically and cross-border, sellers are looking for new battlefields. To avoid price wars, sellers need to establish competitive advantages in products or technologies, as Anker Innovations and Yibai Network have done. At the same time, sellers are also actively exploring other ways to avoid being involved in price wars.