Amazon Aims To Prevent Alibaba From Entering The Foreign Market And Actively Attracting Chinese Sellers.

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The US website searches for mobile phone charger. The first place in search results is China Electronics.

Anker's exclusive sales charger is located in front of Amazon's own product line AmazonBasics and Samsung's (Samsung) international top cash charger.

The $12.99 Anker charger has received 23 thousand user reviews, most of which are positive reviews.

Anker was founded by Yang Meng, a post-80s generation.

He received a master's degree from Texas University and served as a senior engineer in Google.

In 2011, he returned home to establish the Hunan Sea Wing e-commerce Limited by Share Ltd, and began to develop the technology products of the Anker brand. In the beginning, it set a plan for the sales of consumers in the United States and Europe.

Four years later, Anker has achieved 1 billion 302 million yuan in sales around the world, and Anker has become the best - selling brand in some categories of Amazon's American Web site.

Like Anker, there are more and more Chinese manufacturers directly selling products to overseas consumers.

Focus on

The "Eagle bear remit" statistics of eco chain service, only in Shenzhen, there are nearly ten thousand cross border electricity suppliers. Quite a few of them sell goods to consumers in North America and Europe through Amazon and eBay websites.

According to the world clothing and shoe net, Amazon is actively attracting Chinese sellers, an important reason is to prevent the Chinese e-commerce giant Alibaba from entering North America and other Western markets.

This creates strong competitive pressure on other US businesses on the platform, and brings challenges to the Amazon platform.

Competition on Amazon platform intensifies

With more Chinese sellers joining Amazon, the existing sellers on the platform face more intense competition in sales.

For example, the sales of stores operated by Channel Advisor, an provider of e-commerce solutions, grew by 11.6% in June compared with the same period in May, up 12.3% in May and 12.9% in April.

These monthly data are much lower than Amazon's two quarter gross sales growth of 33.8%.

Scott Wenger, executive chairman of ChannelAdvisor, said in July this year that competition on Amazon's platform intensified in the first six months, claiming that the new sellers took away the market share of the existing sellers in July.

At least some of these new sellers are located in China.

Channel Advisor declined to disclose how many customers the company has in China.

The impact of fierce competition on sales is eBay larger than that of Amazon.

Venus believes that this is because many products sold by Amazon have comments and ratings, and there are very few product reviews on eBay.

(eBay did not launch product reviews until the end of 2015).

He said that in this way, competitors who sell low-priced products will have an advantage over eBay, because consumers can not release product reviews and affect other consumers' purchasing decisions.

"Our sales volume is 20% lower than the sales we should have, because there are many low quality and low price sellers on the platform, many of which are from China," Venus said.

Chinese sellers began selling products overseas on eBay's online platform in 2007. Data from online retailer community WebRetailer released in July this year showed that 32% of the top 1000 sellers on eBay were Chinese sellers for the US, Europe and Australia.

This figure was 30% in 2015 and 25% in 2014.

Sales of Chinese sellers in Amazon last year increased by 10 times.

Chinese brands like Anker are increasing rapidly, and Amazon is also encouraging their growth.

In 2012, Amazon began to attract Chinese brands from its Amazon.cn sellers, and sold products to the United States and Amazon in other markets around the world.

In December 2015, in Guangzhou, "the global open shop" Chinese seller summit, Amazon executives said sales of global sellers doubled in 2014 compared with 2014 in 2015.

Surprisingly, sales of Chinese sellers in Amazon America increased by nearly 10 times in 2015.

However, Amazon did not disclose the exact amount.

Why is Amazon actively soliciting sellers in China? A spokesman said, "this is to achieve globalization of the platform, so that global sellers can enjoy the existing opportunities.

Last year, we launched some sales tools to help entrepreneurs in 172 countries find consumers in 189 countries.

But others say things are not so simple.

Tapp Chis, the seller, believes that the reason why Amazon actively soliciting Chinese sellers is to consolidate its territory, so as to prevent the Chinese electricity giant Alibaba from entering North America and other Western markets.

"Amazon is an excellent company and is in a leading position, but Amazon is also worried that these Chinese e-commerce platforms will come to the United States."

Tapp Chis said.

"They know that if they can bring Chinese sellers to the US market and sell products at a very low price, then Alibaba will have no advantage when they bring their business to the United States."

Many European and American sellers who grew up on Amazon find it frustrating to see that sales growth has slowed in the past two years, which coincided with the fact that Amazon actively soliciting Chinese sellers.

The new competitive situation has made it difficult for some of the old American sellers of Amazon to grow.

Amazon does not want to disclose how many Chinese companies sell products on its US website.

However, this number has increased rapidly in the past two years.

Noah Hirshman, a chief operating officer of the Dunhuang Internet DHgate.com, a cross-border e-commerce platform in China, and MarketplaceIgnition, who is responsible for the Southeast Asian business of the consultancy company (NoahHerschman), said that the number was 20.

This means that in the 2 million Amazon American sellers released by Amazon in 2015, Chinese sellers accounted for about 1/10.

At a recent meeting, Amazon executives in China said that about 30% of Amazon.com's apparel sellers came from China.

Good days for European and American middlemen are over.

China online retailing firm Tesco has discovered the price gap between Chinese sellers and foreign buyers, and has found that consumers can be exposed to high consumption through the Internet.

There are 250 thousand kinds of goods sold by the company, including clothing, consumer electronics and toys, which can be sold to 200 countries.

In its 2015 annual report, the company said its sales increased by 165% last year to 3 billion 640 million yuan, of which 80% of sales were obtained through the English business website operated by the company, including apparel website SammyDress.com and DressLily.com, and electronic product website GearBest.com.

Global Tesco said less than 10% of its sales came from Amazon, but the company did not want to disclose how much Amazon's sales grew.

The opportunities for Chinese manufacturing enterprises and trading enterprises are obvious. The cost of manufacturing or purchasing products in China is obviously different from that in the rich countries such as the United States, Canada and the United Kingdom.

By using the Internet and Amazon's online market, suppliers can directly contact consumers in Europe and the United States, and prices are often lower than the prices given by middlemen.

Intermediate traders such as importers and distributors raise their retail prices because of their own cost and profit objectives.

"Chinese sellers definitely have many advantages.

Most of the world's goods are made in China, and if a manufacturer sells directly on Amazon, it will cost less, "Marshall Tapris said." MarshallTaplits

"If the only advantage of an American seller to support business is the low price, the good days will soon come to an end."

Tapp Chis is the founder of AmichaiLLC, which sells Chinese products for sale at Amazon American store.

Amazon provides convenience for Chinese sellers

Amazon sellers all over the world are facing this situation, because Amazon is the first choice for many Chinese sellers to go abroad.

Payment company PayoneerInc. surveyed 900 online sellers in mainland China and Hongkong in August.

According to the report, 62% of Chinese online retailers facing overseas markets are selling goods on Amazon, the most popular among all international shopping websites.

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Of the 62% sellers who sell products through Amazon, 91% use Amazon.com to sell to the United States.

Many Chinese manufacturers that have not yet landed on Amazon are planning to join.

26% of them said they wanted to sell their products at Amazon stores, 23% said they wanted to join Amazon's European stores, and 12% hoped to sell through Amazon, UK.

According to the world clothing and shoe net, the reason why Chinese sellers favor Amazon's platform is "high quality products" and "simple and fair rules".

This may be because the process of selling goods on Amazon is simpler than some other e-commerce platforms.

After uploading the product list, the seller can sell it on Amazon within a day.

The reasons cited by Chinese sellers include large volume of traffic, support from local consumers, and access to many different markets through Amazon.

Amazon is also providing convenience to Chinese manufacturers in other ways.

For example, Amazon launched its Chinese version of Amazon seller back office (SellerCentral) in 2015 to its sellers in the US and UK websites.

Amazon also set up a Chinese seller support team, and held a seller summit in China to promote cross-border e-commerce opportunities.

In the 14 national websites operated by Amazon, 10 products are sold by Chinese sellers: the United States, Canada, France, the United Kingdom, Spain, Italy, Germany, Japan, China and Mexico.

Us sellers are targeting Chinese sellers.

The competition on Amazon is already very intense. Some sellers in Amazon say that the competition is becoming more and more serious because some sellers from China have taken unfair measures.

They said in an interview that Amazon officials have not yet been able to curb counterfeiting and other illegal practices.

Amazon's current process of dealing with these problems can not effectively solve their concerns.

The sellers who complained that they did not try to pursue the responsibility for infringement in court, but looked forward to dealing with the problem.

Sellers said that Amazon did not adequately monitor and respond to such problems, and the process of reporting counterfeiting was rather cumbersome.

The problem of counterfeiting is not new, nor is it limited to Chinese sellers. Thompson, an industry expert who worked for Amazon, said.

He said that this is very difficult for Amazon because it wants to become an open market platform that has been operating for many years, but once there are 2 million sellers on the platform, it will be very difficult to deal with 300 million kinds of goods.

In August, Amazon took new steps to control and reduce the number of counterfeit products.

Since August 22nd, sellers of New Amazon platforms have to pay a one-time fee of $1500 if they want to sell specific brand products.

In addition, buyers also need to provide three copies of invoices from manufacturers or distributors, and provide a letter authorizing the seller to sell their products.

These rules are intended to restrict sellers from selling so-called "gray market" commodities, such as purchasing from Asia and selling through Amazon.com in North America. They may find that the exclusive distribution rights in the North American market may belong to another company.

"Amazon is such an open market that anyone can come."

Tapp Chis said.

"The downside is that since anyone can come, it's easier for others to take away your job."

More interesting reports, please pay attention to the world clothing shoes and hats net.