The Current situation of Amazon: Top Sellers from China –Based Businesses

The world has been facing a huge problem, affecting the human's way of living. It is sad to say that from the beginning of this year, people have already gone through a lot because of the current pandemic. No one expected this kind of misfortune. The world was put into a sudden halt to control the situation.

The business industry is experiencing significant loss, for they are losing a massive amount of profit. One example would be the several China-Based Businesses that serve as the top sellers from Amazon. About four years ago, 11% of the top sellers from Amazon were China-based. Over the years, the number continuously grows. The Marketplace Pulse stated that 29% of top sellers from four core Amazon markets are China-based.

The Four Core Amazon Markets are:

  • U.S
  • U.K
  • Germany
  • Japan

Though there are many new sellers on Amazon that are China-based, there is still no assurance that this will bring success for the following years considering the situation we are experiencing right now.

One of the factors that cause the sinking of the share of top Amazon sellers would be the interruption to FBA (Fulfillment by Amazon) service. 95% of China-based sellers from the Amazon marketplace in the U.S use FBA service. These Amazon top sellers that use FBA services are running out of stock. Local sellers decided to fulfill customer orders from their warehouse to cope with the sudden change of situation. But international sellers cannot manage to do the same. And Amazon itself is prioritizing the necessary products, baring sellers from shipping new inventory to FBA.

In the first quarter of the year, Brian Olsaysky CFO at Amazon stated that their profit was not as high as their usual earning report, and they made a lot of adjustments to lessen the profit loss. MFN (Merchant Fulfilled Network) is what the sellers are relying on, as of now. MFN process doesn't have to come into Amazon warehouse, and products can be shipped to the consumers directly.

As for the consumers, their focus shifted entirely to different kinds of products that are needed nowadays. In March, Amazon recorded that consumers started searching for toilet papers, face masks, hand sanitizers, and other necessities. Unfortunately, those necessities also went out of stock.

Top sellers from Amazon have a hard time keeping up with alternatives that would satisfy the consumer's needs while we are in a hard situation. But sellers should not lose hope for there are a lot of accessible solutions. There are online services that focus on helping Amazon Sellers to boost their sales. PPC Winner offers this kind of service. Amazon Sellers built this machine learning tool to help their fellow Amazon sellers. They have various services to give sellers excellent performance with their Amazon business.

It won't be easy to get back on track with the business and the usual way of living. But we do hope that eventually, Chinese sellers can keep up with their business on Amazon. While it is miserable that we are experiencing this kind of situation. we also realized that the pandemic has affected the international supply chain. It greatly affected the natural Amazon ecosystem, but people will still do the best they can to continue their duties. Some many institutions or managements are willing to help in completing those duties.

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