Ecommerce Marketplaces Comparison

China has created large powerhouses (Shein, TikTok Shop, Temu, Wish, Aliexpress) in cross border B2C commerce owing to its high quality, low cost manufacturing capabilities. But the interesting part is that this trendline is not very old and inflection came only post 2014. And what an inflection - their x-border B2C ecom sales grew from <$10b to $300b+ in 10 years!   Such steep J-curves are rare and often beg the question - what changed? What was the 'why now'?   The biggest contributor surprisingly is Amazon. Back in 2013, they were miserably losing in domestic ecom to Ali/JD in China. This prompted them to explore avenues to boost relevance and they decided to double down on enabling small China sellers to export to US. They aggressively onboarded, educated these sellers on cracking perf marketing / right PDP and pricing in US led to China. This led to these small sellers making up 60%+ of all global AMZ sellers and 35%+ of all AMZ's 3P GMV. It's these same set of sellers that are now on Temu, AliExpress, TikTok (main catg. being design oriented/ unbranded - home/ fashion/ sports/ electronics accessories)   Post 2014 was also a time where China govt. aggressively simplified e-com export norms (e.g., separate ecom export hub with fast customer clearance and limited paperwork), leveraged China Post for deliveries and provided supplier subsidies.   Things accelerated even further when Chinese companies (Shein, TikTok, Temu) explored drop-shipping models which saved them huge import duty taxes (via the De Minimis rule - low tax/ minimal scrutiny for items <$800) in the US, making their prices even better than before.   These were just tailwinds. But it's hard to miss how special China mfg set ups are. Not only are these extremely low priced (50%+ cheaper vs global peers) but they are agile and innovation focused (60% of these seller sales are generated by new product launches that happened in past 12 months). This has also led to at least 100+ sellers that do $100m+ x-border GMV sales annually on ecom with Anker (portable charger seller) doing $2B+ sales(!) annually.   Now history doesn't repeat itself, but it often rhymes. A similar movement of building global brands from india is just starting to explode.   More in Part 2.

As a DTC brand, have you considered the risks of relying solely on Amazon as your growth engine, especially as its dominance in the e-commerce landscape continues to surge? Amazon’s share of US e-commerce sales is projected reach an impressive 40.9% by 2025, a clear signal of Amazon’s tightening grip on the retail market. I see this trend as a wake-up call. While Amazon offers unparalleled reach, its growing dominance amplifies the risks of over-dependence. Policy shifts, escalating fees, and fierce competition can destabilize your profitability and erode your control over your brand. The solution? Diversify your sales channels to build a more resilient business. Here are 2 actionable strategies for diversification every Amazon brand should pursue today: 1. Embrace Direct-to-Consumer (DTC) Sales: Invest in your DTC infrastructure. This is the time to focus on building a real brand that stands independently to the vast search intent that Amazon offers. Use Shopify, Klaviyo, Meta, and Google as your "core four" to begin generating and converting demand to your DTC business. Selling directly to your customers lets you bypass Amazon’s fees and regain control over your brand's narrative. By forging stronger relationships with your audience, you not only mitigate the impact of Amazon’s rule changes but also unlock opportunities for higher margins and customer loyalty. 2. Tap into TikTok Shops: With now over a million creators thriving on TikTok Shops and search volumes surpassing Google in certain product categories, it’s a vibrant marketplace waiting to be explored. Partner with influencers and leverage TikTok’s powerful discovery tools to connect with new audiences and drive sustainable growth. You'll also find the discovery on TikTok drives new customers to both your Amazon and DTC business as a bonus. Why act now? Relying solely on Amazon leaves you vulnerable to unexpected disruptions, whether it’s a policy change or intensified competition. But by branching out to platforms like TikTok Shops, building a DTC presence, and exploring multiple revenue streams, you can safeguard your business and seize untapped opportunities. The data is undeniable: Amazon’s meteoric rise is both an opportunity and a risk. Don’t wait for the next policy shift to catch you off guard. Take action today—diversify your strategy, harness innovative platforms, and position your e-commerce brand for long-term success.

There is no such thing as a "channel-specific" strategy anymore. Every channel affects the other. If you're running Meta ads for your DTC site, you’ll see spillover sales on Amazon. Going to TikTok shop for an influencer launch? A big chunk of that audience still checks Amazon to see reviews. The playbook to win on each channel is different, but none of them live in isolation. On DTC, creative is everything. Ad fatigue is real, and email is a major revenue driver. With Amazon, creative isn’t the bottleneck. Ranking, Sponsored Products, and reviews are. Your DTC campaigns should fuel branded searches on Amazon. Your Amazon presence should validate your retail push. There’s no such thing as an “Amazon-only” or “DTC-only” strategy anymore. Brands that silo the two are leaving serious money on the table.

About half of customers "prefer" to buy direct from a brand, but only 13% of all ecommerce transactions are done so. It's the brand's fault. If you're a multi-revenue stream business: • Direct to consumer: [brand].com • Amazon or similar commerce hubs • Third party retail (brick and click) You need to aggressively compare the value exchange between each for the customer. Obviously if a customer wants your product, they're going to look for the most convenient and valuable experience, right? I work with hundreds of brands in the above format, and most DTC sites: • Have no unique value prop • No unique assortment • No unique offer • Slow shipping • Bad UX The brand gets the MOST value from a customer buying directly from them: • First party data • Direct access to lifecycle • Predictive analytics and measurement • A deeper relationship with the customer But instead most brands treat their DTC experience as just an after-thought. I'll ask something like "Why would a customer buy from you instead of Amazon?" Their answer is usually either fluff (a lie they tell themselves) or some kind of shrug of their shoulders. Consumers aren't stupid. They have every intent to buy your product but you're getting in their way. Why would someone NOT want to buy from Amazon when they get free, 1 day shipping, one click checkout, guaranteed returns, and very helpful customer service? How can you beat that? For some businesses -- the answer is they shouldn't try. And in that case their objective should be to push more and more people into a retail environment. This is common in the CPG, beauty, and food industry. For others -- you need to think about what would a customer WANT out of you? It usually breaks down into one of three categories: 1) Product: you have a unique assortment or some kind of product benefit. 2) Promotion: not necessarily a cheaper price, but, perhaps a gift with purchase, loyalty points, or some other incentive. 3) Service: can you really help guide them to the right product? Can you better predict what they need in conjunction with the core item? Can you beat Amazon in delivery, returns, and answering questions? If you can't or won't do any of the above, don't be shocked when your DTC struggles to grow but your Amazon and 3PR is going up. And don't blame your poor marketing manager or DTC team. #marketing #retail #dtc #amazon

✨ This year, I’ve written a lot about Chinese ecommerce platforms Shein, Temu, and TikTok Shop expanding internationally. It’s time for a progress report. Here are the three trends I’m watching right now: 💡 𝗧𝗵𝗲𝘆’𝘃𝗲 𝗴𝗼𝘁 𝗔𝗺𝗮𝘇𝗼𝗻 𝘀𝗰𝗿𝗮𝗺𝗯𝗹𝗶𝗻𝗴. Amazon may dominate U.S. ecommerce with a 38% share, but nearly half of its top third-party sellers are based in China. That could be a problem... It’s only a matter of time before these made-in-China products are available on Temu or Shein for 20% to 40% less. Why? Because China’s ecommerce players negotiate directly with Chinese factories and sell as wholesalers to the consumers in the West. The individual sellers on Amazon can’t match the cost savings that come with that bargaining power. To counter that, Amazon last week reduced the commission it takes on clothing priced below $15 from 17% to 5%. Additionally, Amazon announced the launch of an innovation center near Shenzhen, China, to support Asian sellers with product launches. That’s a complete reversal in strategy from 2021, when Amazon banned over 3,000 Chinese seller accounts for violating platform rules. Expect to see more “seller-friendly” terms coming out of Amazon going forward, as the company gives its sellers a chance to compete against these Chinese platforms. 💡 𝗧𝗵𝗲𝘆’𝗿𝗲 𝘀𝗲𝘁𝘁𝗶𝗻𝗴 𝘁𝗵𝗲 𝗺𝗮𝗿𝗸𝗲𝘁 𝗽𝗿𝗶𝗰𝗲 𝗳𝗼𝗿 𝗚𝗼𝗼𝗴𝗹𝗲 𝗮𝗻𝗱 𝗠𝗲𝘁𝗮 𝗮𝗱𝘀. Temu, which only launched a little over a year ago, accounted for 20% to 25% of ad impressions purchased on Google in Q4. Meta attributed the growth of its ad revenue this year to "a few of its larger China advertising clients". That’s weighing on competitor platforms the cost of acquiring customers. “Shein and Temu are almost single-handedly having an impact on the cost of advertising, particularly in some paid channels in Google and in Meta,” said Josh Silverman, the CEO of Etsy, during the company’s latest earnings call. 💡 𝗧𝗵𝗲𝘆’𝗿𝗲 𝘂𝘀𝗶𝗻𝗴 𝗷𝗼𝗶𝗻𝘁 𝘃𝗲𝗻𝘁𝘂𝗿𝗲𝘀 𝘁𝗼 𝘀𝗶𝗱𝗲 𝘀𝘁𝗲𝗽 𝗴𝗲𝗼𝗽𝗼𝗹𝗶𝘁𝗶𝗰𝘀. Bytedance, TikTok’s parent co., announced last week that it will invest $1.5 billion for a 75% stake in a new joint venture between Tokopedia, the ecommerce unit of Indonesian giant GoTo, and TikTok Shop Indonesia. This goal: Get TikTok Shop back up and running in the country after its operations in Indonesia were virtually shut down overnight by regulators. Shein took a similar track in August when it acquired a third of Forever 21's operator, Sparc Group, to gain offline channels—but, more importantly, to try to escape the scrutiny by U.S. regulators that comes with being too close to China. Unfortunately, cross-border shopping platforms will be collateral damage in the continued geopolitical tensions. Joint ventures may be the new norm to get around this international tit-for-tat, giving TikTok, Shein, and Temu access to new markets—and growth—while local players get a piece of the action, too.

Over the years in partnerships, I’ve spent time on both sides of ecommerce - DTC and now marketplaces for 3+ years Something that’s becoming more and more clear is that Amazon and Shopify don’t have to be competitors. They can (and should) be complements. Brands are no longer thinking in silos. They think in terms of: - Customer experience - Channel profitability - Operational efficiency - Global growth So why are so many tech platforms still built to solve for just one side of the commerce equation? That’s starting to change more and more, and I’m here for it. Some of the most forward-thinking companies I’ve seen are actively closing the value gap between Shopify (DTC) and Amazon (marketplaces): - Amazon BwP – bringing Prime’s trust and logistics muscle into the DTC checkout experience - Klaviyo – enabling Amazon customer data to inform email/SMS flows traditionally reserved for Shopify - Zonos – simplifying international logistics and duty/tax transparency for both Amazon and Shopify brands - Passport – making cross-border DTC easier with managed delivery, branded tracking, and Shopify-native international tools - Pattern® own PXM platform – built to optimize the digital shelf everywhere your products live, not just on one platform Being in partnerships is the greatest thing because I get to see this convergence happening in real time. Brands want unified solutions. They want fewer partners doing more. And they want ecosystems that talk to each other. This shift isn’t about picking a side. It’s about doing what’s right for the brand, the shopper, and the long game. Definitely curious what others are seeing! Are you noticing more collaboration between Amazon and Shopify platforms lately? Any tools or tech you’re impressed by? #ecommerce #amazon #shopify #marketplaces #dtc #partnerships

The first round of Trump tariffs had the intention to boost American manufacturing. Instead, it gave China a leg up everywhere US-based manufacturing wasn't competitive. Especially on Amazon, Chinese brands quickly gained market share while U.S. brands struggled. Here’s how they did it: 1. Playing the Declared Value Game Tariffs are paid on the declared value of goods. Chinese exporters declare their cost. American brands have to include everything—labor, overhead, and profit -- whatever is on the invoice from China. This means Chinese brands legally pay less in tariffs on the exact same goods. That is an unbeatable advantage on Amazon, where price is everything. 2. Using the De Minimis Rule By warehousing in China and shipping straight to U.S. buyers in packages under $800, they avoided tariffs altogether. U.S. brands didn’t have this flexibility, so their prices went up while Chinese brands stayed competitive. 3. Black and Gray Zone Let’s not forget the whispers about undervaluing goods, using wrong HS codes, or even shipping through other countries to hide the "Made in China" label. Brands that don't have US addresses don't pay state-level taxes, whereas a US brand has to file complex forms and pay taxes in 40+ states. Chinese brands can do these things with impunity, because they're unreachable and/or can easily come back in a new form. Just see the Aukey saga going from banned-on-Amazon to a successful IPO. The Numbers Don’t Lie In this period, Chinese sellers exploded on Amazon. In 2019, 28% of new Amazon sellers in the U.S. were from China. By 2021? A massive 63%. The chart below looking at top sellers understates the reality as it doesn't include all the largest Chinese brands like Anker, which have US addresses. What It Meant for U.S. Brands American companies, stuck playing by the rules, got hit hard. Higher costs, shrinking margins, and losing market share to a flood of competitive Chinese products. With tariffs rates apparently about to increase to 60% or more, the advantage in avoiding those tariffs will become determinative. The Big Question How do we ensure trade policies don’t backfire? What’s the right way to level the playing field without punishing the players who follow the rules? Observability With millions of cross-border companies encouraged by Amazon and now Temu and Shein, any tax or regulation based on self-declaration hands the market to the rule breakers. Stop it. Only impose taxes and regulations that can be and will be strictly enforced. That means observable things like weight or volume or things that can be automatically seen with a scan. If compliance can't be determined automatically at scale, any new tariffs will only backfire further. #SupplyChain #TradeWars #eCommerce #AmazonSellers #MadeInChina

Shopify wants to replace Amazon as your first stop when you want to make a purchase online. And they just made their most serious move yet.   We saw the future of e-commerce at Shopify Editions. AI chatbots advising purchase decisions, stores completely personalizing experiences, developers building faster than I've seen in years. All of this is pressuring every company to provide a better experience for people who are shopping.   But there was a behind-the-scenes update that might be even more significant.   Shopify's catalog update.   They're giving select apps the ability to search across all Shopify stores. And I think this is Shopify's most serious move yet to position itself against Amazon.   Think about it. Right now, when you want to buy something online, you open Amazon. Shopify wants to be that go-to app. And with this catalog access, they're building the infrastructure to make it happen.   Here's why this matters for merchants.   Let's say you sell sports equipment. You didn't do your SEO homework, so you're not showing up in organic search. You're relying entirely on your own content, social, and ads to generate traffic. That's expensive—especially going from $1M to $10M in revenue. We've seen a lot of merchants get stuck there.   But if Shopify can drive demand directly to merchants? That changes everything. They could charge for the traffic like Meta or Google, except Shopify has dual incentives—they make money on the ad AND the transaction.   Of course, there's a catch.   You're now up against every other Shopify merchant selling similar products. With 4 million merchants, there's almost certainly another one in your category.   If Shopify goes the Amazon route—with side-by-side comparisons of reviews, ratings, delivery times—that's a very different platform than what merchants signed up for.   Shopify's rolling this out very carefully. They're only giving access to select partners right now. They know merchants didn't sign up to be in a marketplace. So whatever they build has to add value without breaking what already works.   But one thing's clear from what I saw at Editions: Shopify is serious about becoming the first place customers go when they want to buy something.   That's going to be really interesting to watch. For Shopify merchants, what's your take?

4.79 million stores run on Shopify. About 3 billion shoppers visit Amazon marketplaces every month. Your first thought is wrong. It's not a rivalry, it’s an opportunity. One of our brands built a 7-figure SKU doing exactly that: They tested three variants on Shopify, found the winner, and scaled it on Amazon with 100% more confidence. Shopify gives you the steering wheel. Amazon gives you the fuel. It's up to you decide where you go next. If you want to scale fast, don’t pick sides. Use both platforms for what they do best. Shopify is where you test. Build the brand you want, keep your customer data, and tweak pricing and bundling with minimal risk. Amazon is where you scale. Tap into massive traffic, convert on Prime trust, and offload logistics to FBA. 👉 It’s not “either-or”, it’s “first-then.” 👉 Start with Shopify to validate and learn. Then pivot to Amazon and grow to own your category. Flipping that order often burns cash. Testing on Amazon takes more capital, and customer data? Amazon keeps it. Shopify lets you experiment cheaply and when something works, you introduce it to Amazon with a blueprint for success. You don’t need to choose a side. You need to understand the impact of not choosing.

Research like a pro before jumping into a category. We have many dashboards and tools for analyzing products, but what if we need to evaluate categories that are new to us? 🤔 That is what the Category Insights dashboard is about. This tool helps us understand how products perform within specific categories across Amazon US, UK, Germany, and Japan marketplaces. You can see what's hot and analyze data like units sold, customer views, returns ratio, and how much sellers are spending on ads. All this info spans from the past 30 days, 90 days, 6 months, or even a whole year! All the first-party data is more useful now than ever since the low inventory fee makes it more expensive to "test" new products. But it doesn't stop there. You can use it to learn about your competition, see how many sellers offer similar products, and see the average number of offers per item. It also allows you to discover what features, such as durability and color drive most of the sales within a category. This intel helps you find gaps in the market where you can stand out. And once you have all that information, you can create a "favorite features" list to keep track of the in-demand features you want to focus on⭐️ Do you see yourself using this new dashboard soon?