Amazon sales plummeted! Nearly 7 million sellers disappeared?

Recently, many sellers have reported a decline in sales, and a large number of sellers said that this year is a difficult year! In particular, this year's order volume is particularly abnormal: not only has the low order volume lasted longer, but the decline in order volume is also greater than before.

At the same time, the replacement rate of sellers on the Amazon platform is also at a high point! Relevant data shows that by the end of 2024, Amazon will have 9.7 million sellers, of which 1.9 million are active sellers!

It is understood that there are countless sellers whose orders have declined recently. Many sellers said that they have experienced ups and downs in Amazon for many years, and this year is more difficult than previous years. Some colleagues also said that this is the worst year in their 8 years of business!

It is particularly noteworthy that some sellers have reported that the traffic in the auto parts category seems to have disappeared?

Recently, a seller of auto parts said in a post that their sales were actually on the rise during this period in previous years, but the current order volume has dropped by 30%-50% compared to last month, and the situation of sellers in the same category is not optimistic.

According to normal circumstances, such a large drop means that at least one-third of the orders in Amazon's auto parts market have disappeared in less than a month. This abnormal situation has never occurred in previous years.

Another thing that puzzled the seller was that several accounts of many friendly competitors had been subject to video review. According to common sense, they should have freed up some market share, but unexpectedly, the orders did not increase but decreased, and the drop was so sharp?

This unusual drop in orders made the seller wonder if Amazon had updated its policies. Otherwise, why would the traffic in the auto parts category suddenly disappear?

So, is it normal for the order volume to drop before the peak season? Sellers have different opinions on this situation.

One view is that consumers are downgrading their consumption and are more willing to turn to lower-priced platforms and merchants to buy products. The low-price strategies of Chinese e-commerce platforms such as TEMU, SHEIN, and TikTok are becoming more and more crazy, and they are competing with Amazon for traffic and orders in various forms of strategies.

In addition, there are also problems with the Amazon platform. The main manifestation is that Amazon has charged too high fees this year (advertising fees, logistics fees, warehousing configuration fees, etc.), which has led to a significant compression of sellers' profits. Sellers have to transfer these costs to consumers, so they are inevitably diverted to other platforms.

Another view is that a decline in orders before the peak season has become the norm. This happens half a month before every big promotion, especially on weekends.

Even if the order volume has dropped a bit recently, as long as the ranking does not drop too much, there is no problem. It is likely that the category traffic or even the platform traffic is very low, so there is no need to worry too much. If the ranking is also unstable, then consider making timely adjustments.

Recently, there was an external report on the number of Amazon sellers. The report pointed out that by the end of 2024, Amazon is expected to have 9.7 million sellers and 1.9 million active sellers . This number is still increasing, and the US site is leading by a large margin! Here are some data for you:

The above impressive data are enough to prove that Amazon still has absolute leading strength to attract Chinese sellers to join!

At the same time, it can be seen that the replacement rate of sellers on the Amazon platform is also at a high point! However, a phenomenon that cannot be ignored is that nearly 7 million sellers seem to no longer be active on Amazon.

This raises a question: Are these sellers forced to withdraw due to Amazon’s competitive environment, or do they actively choose other development paths?

Previously, a seller shared that he had collected some competing stores, most of which had high order volumes and excellent listings and were worth learning from. There were about 400 of them, but currently only more than 60 of them are operating normally. The other stores have been closed, with a closure rate of over 80% .

Of course, it is not ruled out that some sellers have multiple stores and continue to operate under a different shell. It is estimated that hundreds of sellers have withdrawn from the Amazon platform. They started from scratch and entered Amazon, and made a lot of money after seizing the opportunity, but in the end they encountered a bad environment, their growth bubble burst, and they left Amazon. This is also a microcosm of many Amazon sellers.

Looking at the overall trend, competition on Amazon is becoming increasingly fierce, especially when large promotions are approaching. Many sellers are just participating in the race, while others are working hard to clear their inventory. Behind the seemingly glorious sales, once the profit is calculated, it is not uncommon to find that the result is negative.

No matter what, I hope all sellers can achieve their goals and fulfill their wishes in the upcoming promotion!