What to do when facing increasing Chinese E-commerce sellers on U.S. selling channels.
“We think there are about 200,000 Chinese sellers on Amazon right now,” said Alasdair McLean-Foreman, CEO of Teikametrics, a company that provides data analytics and optimization technology for sellers on Amazon and other e-commerce platforms.
In the past few years，E-commerce is moving further toward globalization. Many U.S. e-commerce sellers have noticed that the number of Chinese sellers on U.S. selling channels such as Amazon and eBay has increased rapidly. Some of local sellers are frustrated and even complain about how the growing Chinese sellers have taken away their businesses.
What actually makes Chinese sellers being successful on U.S. E-commerce selling channels?
- The support of Chinese government.
Chinese government came out several policies to support Cross-Border Electronic Commerce, especially export sellers in the past several years. By establishing Cross-Border Electronic Commerce community in cities such as Hangzhou and Shenzhen and reducing taxes to encourage those companies to trade globally. Selling directly to global consumers is much easier than past.
- Amazon, eBay and other selling platforms are inviting Chinese sellers.
In 2015, Amazon made some big steps to pushing for Chinese sellers to start selling directly to buyers on its European and U.S. marketplace. In order to make the process easy for Chinese sellers to export products from China, Amazon itself provides cheap and efficient ocean freight to ship products into Amazon’s fulfillment warehouses. Also, Amazon sends operation experts to China to educate sellers how to open an account and how to operate. Selling globally is now easy for Chinese sellers.
- Low price is the key.
Made-in-China products used to be known for low price. However, Chinese merchants are now focusing more on producing high quality products while the price is still reasonable.
Brand Anker is a Chinese technology company based in Shenzhen that designs, produces and sells mobile chargers and accessories. Most of Anker’s products are Best Sellers on Amazon, and the prices are around 15% cheaper than other brands.
Why the price is low?
- The cheaper labor cost in China.
- The simplified exporting process allows Chinese sellers to save agency fees.
- Use other tools to get lower international shipping rates. International shipping, save up to 78%.
What can U.S. sellers do to keep market shares?
- Provide quicker shipment service than Chinese sellers do. No matter how fast it is, international shipping at least takes more than two days to arrive in U.S.
- Reduce your shipping cost to set a better price to increase sales. Discounted shipping labels up to 54% off air, 41% off ground.
- Continue to innovate and improve your products to make them different. Care about customer feedbacks.
- Sell your products in different selling channels to increase sales. Help you manage orders from multi-channels.
- Build good relationship with your Chinese suppliers to get best price. If you haven’t find a Chinese supplier, it’s your time.
- Take your advantages on providing awesome customer services since you know the consumers better than Chinese do.