Walmart, America’s largest retailer, has recently seen a significant increase in Chinese sellers on its marketplace. These sellers, who previously made up a small percentage of new sellers, now make up a majority of new additions. This shift is attributed to Walmart’s decision to allow international sellers on its platform, a move that was influenced by the success of competitors like Amazon and Chinese e-commerce companies Temu and Shein. As a result, Walmart’s website now features a growing number of products from Chinese brands.
According to Marketplace Pulse’s data, Amazon is also increasingly reliant on third-party vendors, many of which are based in China. These sellers are expected to account for a significant portion of Amazon’s online sales in the coming year. Temu, a Chinese-owned app that launched in the U.S. in 2022, has capitalized on this trend by providing Chinese sellers with a platform to reach American consumers directly. The app has quickly become successful, with high sales numbers and a large number of downloads.
The rise of Chinese sellers on platforms like Walmart and Amazon has presented a challenge to American sellers, particularly smaller businesses. The Chinese government has announced plans to support e-commerce companies looking to expand overseas, with a focus on promoting Chinese brands and manufacturers in international markets. Analysts believe that the increased competition from China is forcing American sellers to adapt and find new ways to compete in the global marketplace.
Goldman Sachs’ recent investor note highlights the dominance of Amazon and PDD Holdings (Temu’s parent company) in the global online sales market. In the U.S., Amazon and Walmart continue to be the dominant players, with PDD Holdings’ market capitalization coming close to that of Walmart. The success of PDD Holdings, which was founded less than a decade ago, underscores the rapid growth of Chinese e-commerce companies in the international market.
Overall, the influx of Chinese sellers on platforms like Walmart and Amazon reflects a broader trend in the e-commerce industry towards globalization and increased competition from international players. As Chinese companies look to expand their presence in overseas markets, American sellers are faced with new challenges and opportunities in the evolving e-commerce landscape.
