Amazon has admitted for the first time that “significant» Market share of Chinese sellers in their marketplace. As Marketplace Pulse reports, the annual Form 10-K filing with US Securities and Exchange Commission (SEC)The company founded by Jeff Bezos added a warning about the risks it faces from its international activities.
«Because China-based sellers account for a significant portion of our third-party services and advertising revenue, and Chinese suppliers account for a significant portion of our components and finished products, regulatory and trade restrictions, privacy laws and cybersecurity, economic factors and security issues, or other factors that adversely affect China-based vendors apply affect sellers and suppliers could have a negative impact on our operating results«Amazon said.
The China-based sellers make up nearly 50% of Amazon’s top sellers in the United States, a cohort that accounts for nearly half of the company’s market share (GMV). Although they haven’t seen significant growth in recent months, these sellers have been increasing their market share on Amazon for years. In the other markets in which Amazon operates, its market share is lower.
Although the company had spent years increasing its market share on Amazon, in November 2020, closures, supply chain issues, seller suspensions, and Amazon FBA inventory limits led to a turnaround and American sellers began gaining market share over Chinese ones.
However, in 2023, the trend of previous years returned and Chinese sellers have regained lost market share, reaching new highs in recent months. On the other hand, the proportion of American sellers has reached historic lows and they already make up less than 50% of sellers.
Amazon has achieved one Net income of $30.4 billion (around 27,927 million euros) in 2023, a recovery after the poor previous year in which The investment in Rivian caused net losses of $2,700 million (€2,480.9 million)..
Sales increased by 12% and reached 574,800 million dollars (528,160.5 million euros) in 2023, compared to 514,000 million dollars (472,307.5 million euros) in 2022. On the other hand, sales of the North American segment rose 12% more strongly 352,800 million dollars (324,307.7 million euros) and that of the international segment, 11% year-on-year to 131,200 million dollars (120,604 million euros). For the full year 2023, sales in the Amazon Web Services (AWS) segment also increased by 13% to 90.8 billion US dollars (83,468.7 million euros).