Chinese brands are beating US brands on Amazon.
There are over 24,000 Chinese sellers and 15,000 US sellers who make over $1 million annually on Amazon. I created an infographic below highlighting key differences in how these sellers approach and perform on Amazon. The SmartScout report reflects only third-party seller brands.
Takeaways:
Chinese brands are less dependent on advertising
Chinese brands have less expensive products
Chinese brands launch newer products
Now, if you're reading this, you're probably getting a little squeamish. I'm posting this on non-Chinese social media, so odds are you're not a Chinese seller. Is all hope lost? No!
1. On average, non-Chinese brands with over $1m in revenue are larger.
2. Many categories exist where Chinese sellers are nowhere to be found (SmartScout's Subcategories tool will show you these)
3. US brands have staying power. Categories with lots of Chinese sellers often cannibalize themselves in a race to the bottom.
It's hard to see a future where this ratio changes without some large external events. Tariffs on the horizon could be that type of event. Are there any others? Is the private label seller's dream ending?