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Every year there is a new group of companies trying to "kill" Amazon. Ten years ago it was eBay, then Walmart and Google. While Amazon has remained the same on the surface, a lot has changed in and around it.

Next, let the Seller Wizard take you with you to gain insight into Amazon's ever-changing trends from four major dimensions: Amazon's global market overview, platform development and changes, Amazon sales distribution, and Amazon Chinese sellers, and anchor the new direction of overseas expansion in 2024.

● How will Amazon respond to the rise of newcomers?

● Amazon’s expansion is paused. How is the performance of existing markets?

● The sales share of third-party sellers continues to rise, and Chinese sellers perform well

● Chinese sellers no longer focus on the US site and shift their attention to Europe

............

Video Interpretation: (You can get the complete PPT for free by sending a "report" in the background of the official account)

Amazon Global Market Overview

As of April 2023, Amazon is by far the world's most popular online marketplace, with an average of approximately 4.8 billion visits that month. The second most visited shopping website is eBay, with approximately 1.2 billion visits.

Rookies SHEIN and Temu from China are also rising. SHEIN, Temu and AliExpress now have a combined monthly web page visits of more than 1 billion times. That’s about half that of Amazon in the U.S. and twice that of Walmart.

But SHEIN and Temu drive most of their sales through their apps rather than their websites. So even combined together, their GMV is an order of magnitude smaller than Amazon's, but it's nothing to sneeze at.

Amazon is the largest clothing retailer in the United States, including online and offline retail. It charges sellers a 17% commission, plus additional shipping and advertising fees, making it one of the most expensive categories to sell on Amazon.
SHEIN's GMV in 2023 will exceed US$40 billion, which is less than 10% of Amazon. But most of that $40 billion comes from apparel, making SHEIN the largest online local apparel retailer.

Facing competition from SHEIN, Amazon also responded. Reduce commission on apparel items priced under $15 from 17% to 5%. For products priced between $15 and $20, commissions will be reduced from 17% to 10%. More expensive items remained at 17%.

Let’s look at Amazon’s performance through its overall situation in the US market.

Amazon accounts for 4% of the U.S. retail market (including all physical stores). In the field of e-commerce (including independent websites, online auctions and other forms of e-commerce activities), Amazon occupies 40% of the market share. On e-commerce platforms, it occupies 40% of the market share. 80% market share. Its status remains unshakable.

At present, Amazon is the mainstream platform for cross-border e-commerce, whether in the global market or in the United States.

But judging from the online platforms used by consumers around the world, the rise of other shopping platforms has given consumers more choices. The multi-platform layout of "letting a hundred flowers bloom" must be the future development trend. Faced with the encirclement and suppression of the Four Little Dragons, Amazon will also make changes.

The development and changes of Amazon platform变化

Amazon originally planned to open new sites in Chile, Colombia, Nigeria and South Africa in 2023. But it wasn't actually launched. Belgium is the last new site to be launched by Amazon in October 2022. Amazon currently has a total of 21 sites around the world.

Amazon's global expansion is very cautious because it requires high fixed investments to open up new markets through Fulfillment by Amazon (FBA). It could leverage existing pan-European infrastructure (and sellers) to build new markets there, but would have to start from scratch in countries like South Africa or Chile. In contrast, Temu is launching in 48 countries in 2023 because it does not require local physical infrastructure.

Amazon will eventually launch in South Africa in early 2024 and has already begun recruiting sellers for the market.

The US site is still Amazon's most important site, accounting for 46% of total visits to its 21 global markets. The eight new sites launched since 2019: the United Arab Emirates, Singapore, the Netherlands, Saudi Arabia, Sweden, Poland, Egypt, and Belgium account for only 2% of all Amazon web traffic.

Compared with the number of visits in December 2022, the web traffic of most sites has been declining. Web traffic in Canada, Mexico, Australia, Turkey, the Netherlands, and the United Arab Emirates is increasing.

Brazil, Mexico and Australia are the fastest-growing international markets across all Amazon sites. In three years, Amazon's web traffic has nearly tripled in Brazil and more than doubled in Mexico and Australia.

Amazon’s traffic structure continues to change.
Mobile dominates global digital commerce website traffic and contributes the largest share of online orders。In the fourth quarter of 2023, smartphones accounted for approximately 78% of global retail website traffic and generated two-thirds of online shopping orders.

It further illustrates that the traffic is gradually tilting towards the mobile terminal. More and more people prefer to use mobile phones for browsing and shopping, and it is particularly important whether retail websites can adapt to mobile phones.

From the perspective of social media traffic sources, in December 2023, YouTube was the social media platform with the most recommended traffic to Amazon, accounting for more than half of the recommendations. Facebook ranks second, accounting for slightly more than 10% of traffic, followed by Twitter, accounting for about 9.76%.

During the two days of the Amazon shopping event, videos tagged #primeday, #primeday2023 and #amazonprimeday2023 were viewed at least 400 million times on TikTok in 48 hours. This number has doubled every year for the past few years. In 2019 this number was almost zero. Consumers are increasingly turning to social media for shopping information.

However, TikTok generated zero revenue from the hundreds of millions of Prime Day views. Conversion rates are also poor because few posts link directly to Amazon. So TikTok is launching its own in-app e-commerce platform-TikTokShop.

Amazon also launched a product similar to TikTok, Inspire, in December 2022, but the effect was not satisfactory. While its social commerce efforts failed, Amazon found a different opportunity.

It cooperates with Facebook and Instagram to enable users to link their accounts with Amazon and place orders directly within the social platform without jumping to the page and switching login accounts.

This cooperation will greatly increase Amazon's overall traffic and order volume, and promote the improvement of e-commerce conversion rates within the Meta social platform.

Whether it is the "e-commerce" of social platforms or the "socialization" of e-commerce platforms, the ultimate goal is to use powerful social traffic to divert e-commerce business and achieve a fully closed loop from social networking to shopping.

Amazon sales and sales distribution

Amazon’s total sales in the past five years have still maintained a growth trend.

Amazon International’s sales in the fourth quarter of 2023 were US$40.24 billion, an increase of 17% from US$34.46 billion in the same period last year. Annual sales will grow from US$118.01 billion in 2022 to US$131.2 billion in 2023, an increase of 11%.

Sales of Amazon's North American site in the fourth quarter of 2023 were US$105.51 billion, an increase of 13% from US$93.36 billion in the same period last year. Annual sales will grow from $315.87 billion in 2022 to $352.83 billion in 2023, an increase of 12%.

This is Amazon’s global net revenue in 2023 on a quarterly basis, derived from online stores, offline stores, third-party seller services, subscription services, AWS and other (advertising, etc.) revenue.

Among them, third-party seller services (Retailthird-party seller services) include Amazon commissions and related fulfillment and delivery fees, as well as other third-party seller services; subscription services (Subscription services) include annual and monthly fees related to Amazon Prime membership, as well as digital video, Audiobooks, digital music, e-books, and other non-AWS subscription services; Other primarily includes revenue from advertising services such as search advertising, display advertising, and video advertising, as well as a smaller portion of sales related to various other products, such as medical Health services.

Net income for the full year of 2023 reached US$574.78 billion, exceeding US$513.97 billion in 2022, an increase of 12%.

This picture is a stacked column chart of Amazon's global net income in 2023. You can intuitively see Amazon's revenue proportion in each section. Among them, online stores and third-party seller services account for the largest proportion of revenue.

In 2023, Amazon's third-party sellers' sales share reached 61% in the fourth quarter, an increase of 3.4% from 59.0% in the same period last year and a record high.

In the previous forecast of Amazon’s e-commerce sales from 2018 to 2027, Amazon’s e-commerce sales will reach US$764.8 billion in 2023.

Among them, sales from first-party sellers will account for US$272.9 billion, and sales from third-party sellers will account for US$491.9 billion. Sales of both business models are expected to continue to grow in the coming years, with the third-party business model growing at a much faster rate.

Chinese sellers have been increasing their market share on Amazon for years. But in November 2020, probably due to lockdowns, supply chain issues, account suspensions, and Amazon FBA inventory restrictions, US sellers reversed this trend and started to gain market share.

However, this reversal stopped in March 2022 and returned to the original trend. Chinese sellers have since regained lost market share and have hit new highs in recent months. By the end of 2023, nearly half of the top third-party sellers on Amazon will be from China.

Only 48% of the top third-party sellers on Amazon’s US market are American companies. U.S. sellers’ market share hits record lows.

Although Amazon shocked the market with its massive closure of hundreds of top Chinese sellers in 2021, new marketplaces like SHEIN and Temu also provide a new way out for Chinese sellers. But Chinese sellers have not quit Amazon. Amazon's GMV is still the largest. Therefore, "Made in China, sold on Amazon" is still the norm.

This chart is broken down by the year the seller entered the market and expressed as a share of total sales. For example, sellers who joined Amazon in 2022 currently account for about 10% of total sales.

Amazon continues to expand its marketplace through the addition of new sellers and the continued growth of long-term sellers. Amid the changing conditions, there has been no apparent flight by old sellers and no loss of interest by new sellers.

Today, about 5% of Amazon’s U.S. sales come from sellers who joined more than a decade ago, and the same 5% come from sellers who joined last year. There is a constant balance between old sellers and new sellers in the market.
More than half of sales on the U.S. Amazon marketplace come from sellers who started selling more than five years ago. At the same time, new sellers are finding opportunities and bringing incremental market growth. Every year, there is a certain percentage of new sellers joining, even in categories where established sellers seem to dominate. The expanding overall market GMV enables new sellers to grow without cutting into existing sellers’ sales, thus avoiding market saturation.

Next, there is the expense of Amazon sellers.

The fees Amazon charges sellers now account for more than 50% of sellers’ revenue, compared with 40% five years ago. The increase in seller expenses is due to Amazon increasing delivery fees and inevitable advertising expenditures.

According to profit and loss statements provided by a sample of sellers who sell on Amazon.com and use FBA, the typical Amazon seller pays a commission of 15%

With the launch of Amazon Supply Chain, Amazon will convert more seller costs into revenue. But Amazon also provides corresponding fees for these fees.

In 2023, Amazon will gradually publicly display product sales on the search page. For sellers, will it intensify the price war, or force sellers to return to the product itself?

In any case, open and transparent sales display means that competition will become stronger and stronger. This move also shows that Amazon pays more and more attention to the refined operations of sellers and will find ways to guide sellers to improve their level of refinement.

This chart shows the sales distribution forecast of some categories in 2022 and 2027, as well as Amazon's fastest growing product categories from 2022 to 2027.

From 2022 to 2027, fashion apparel is expected to be Amazon’s fastest growing product category，Sales are expected to grow at a compound annual growth rate of 12.4%. The health and beauty category follows closely with an expected CAGR of 12.1%, followed by office products and electronics with a CAGR of 11.6%.

Among Amazon shopping events, according to a survey of 1,000+ brands selling on Amazon, the main shopping event that drives the largest sales growth is Black Friday, with one-third of respondents believing it is the most influential event. .

Black Friday is followed by Prime Day, and 17% of brands said their sales increased during this event.

This is the ranking of the top 10 most popular categories on Amazon Prime Day 2023.

On Amazon Prime Day in July 2023, the most popular category was home furnishings, purchased by nearly 30% of US Amazon Prime users. Clothing and shoes ranked third, purchased by 24% of users.

Among the popular categories on Amazon Prime Day in the United States, sales of the beauty and personal care category increased by 35% in July 2023 compared with the previous year, the largest increase. The health and home segment followed, with sales up 26% year-over-year. The average growth rate across all categories was 8%.

Amazon seller and category data\

According to the statistical results of the Seller Wizard [Keyword Counter-Check] tool, the top five sites that Amazon Chinese sellers pay most attention to are: the United States, the United Kingdom, Germany, Canada, and France.

Chinese sellers no longer always focus on the U.S. site. The proportion of inquiries on the U.S. site has dropped from more than 50% in the previous two years to about 25%, while the proportion of inquiries on sites such as the United Kingdom, Germany, and Canada has increased significantly. Sellers’ Attention shifts to Europe and Canada.

We further compared the proportion of site inquiries in 2022 and 2023, and we can see more intuitively that under the premise that the number of inquiries on all sites has increased, Chinese sellers are paying more attention to sites that are more diversified.

In addition to the sharp decline in the number of inquiries for the US site, the Japanese site is also declining, while the five European countries and the Canadian site have increased a lot. The most obvious increase is the Canadian site, which has increased from 4.7% in 2022 to 2023. 12.9% of the year.

This is the product classification of the four major sites that Chinese sellers pay most attention to: the American site, the British site, the German site and the Canadian site, which is the number of products on sale under each major first-level category on these sites. (For data from the UK station, Germany station and Canada station, please click "Read the original text" at the end of the article to obtain the complete PPT for free)

The supply and demand relationship reflected in the number of products on sale and the search volume of core keywords in the category is an important reference data when selecting products.

These categories are arranged in descending order according to the number of products on sale. It can be seen that as of January 1, 2024, the number of products on sale on the Amazon US site is close to 850 million, among which the category with the largest number of products on sale is It is still the clothing, footwear and jewelry category, accounting for over 30%. In other words, more than 30% of the products on sale on Amazon’s US site are clothing, shoes, boots and jewelry products.

We also used the Seller Genie [Keyword Counter-Check] tool to count the categories of the 100 most frequently queried ASINs by sellers, and found the ten categories that Chinese sellers will pay attention to in 2023 on the US, UK, Germany and Canada sites. Major categories and the average price of the category. (For data from the UK station, Germany station and Canada station, please click "Read the original text" at the end of the article to obtain the complete PPT for free)

Among them, the top ten categories that Chinese sellers pay most attention to on the US website are：
Home & Kitchen, Beauty & Personal Care, Clothing, Shoes & Jewelry, Arts & Crafts & Sewing, Sports & Outdoors, Automotive, Tools & Home Improvement, Industry & Science, Office Supplies, Toys & Games.

We selected the Under-BedStorage product in the home and kitchen category and used the Shulex-VOC tool to conduct market insight and user insight analysis.

Through the proportion of products with different storage capacities and the corresponding sales trends, it was found that products with a capacity of 60L occupy the second market share with 7% of the under-bed storage box market, indicating that storage boxes of this specification are the most popular ones in the market. "Best-selling" products in market segments.

The main pain points of this type of products are still quality issues: such as thin materials, zipper problems, easy breakage, etc. There are also a small number of feedback storage boxes that are difficult to stack and have no structural support; unmet needs include bottom support, larger size options, etc. It can provide entry-level suggestions for sellers who are new to this market segment or improvement suggestions for sellers who are deeply involved in this market.

The above are only the results of some user insights. For more content and categories, you are welcome to use ShuIex for in-depth analysis; Seller Elf members can use the Shulex plug-in version for free. Click to try

Next is the proportion of Chinese sellers. This chart shows the number of stores with active sales under the first-level categories of each Amazon site as of 2023.

The proportion of Chinese sellers selling goods in the United States, the United Kingdom, Japan, and Europe exceeds 50%. The highest proportion is in Mexico, which is 72.6%. (Note: The Canadian site does not open the seller’s address, so it is impossible to accurately determine the seller’s location. Only historical data is retained for reference)
The number of Chinese sellers will increase significantly on many sites in 2023. Among them, the number of Chinese sellers on the US site has increased the most, with an increase of 56.8% compared to 2022.

Through the sales proportion and quantity proportion of Chinese sellers on each site according to Seller Wizard statistics, we summarized the current situation of Chinese sellers on Amazon globally.

About 55% of the U.S. site are Chinese sellers, accounting for 58% of the market share. It is currently the best-performing site for Chinese sellers in the Amazon global market. The performance of the Mexican and French stations is also very impressive, with 72% and 60% of Chinese sellers respectively occupying more than 50% of the market share.

Finally, there is the province and city distribution of Amazon Chinese sellers calculated through Seller Wizard.

Nearly 30% of Chinese sellers are located in Guangdong Province, followed by Zhejiang, Fujian, Henan and Jiangsu. Among them, the cities with the largest number of sellers in China are Shenzhen, Guangzhou, Dongguan, Shanghai and Hangzhou.
The above is all shared by Amazon’s 2023 annual data report. thanks for watching看

About Oriental Global

How to win steadily as an Amazon in 2024? This "Amazon Annual Data Report" is a must-read!

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