First, “Made in China.” Retailers went to China to outsource manufacturing. Second, it was “Sold by China.” Chinese manufacturers sold through Amazon. Now, third, “Marketed by China.” Chinese companies are running vertically integrated retailers.
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Four years since its launch, Target's third-party marketplace has just 650 sellers. Target only accepts carefully selected sellers; thus, its marketplace remains the most coveted.
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Shein and Shopify were the biggest e-commerce winners in 2022. Their sales are still significantly above pre-pandemic levels too. Etsy was strong, Walmart with Amazon did okay, and eBay struggled the most.
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Amazon's growth in 2022 was nearly flat. That never happened before in its quarter-century as an online retailer. However, Amazon's results illustrate macro movements in online shopping rather than Amazon's underperformance.
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Amazon seller acquisitions declined only slightly in 2022 despite slow e-commerce growth and rising interest rates. Seller valuations have decreased, but more buyers that don’t call themselves aggregators allowed strong businesses to stay in demand.
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A dozen startups became unicorns betting on the Shopify ecosystem. Amazon has zero. A lot of capital is racing to change that.
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E-commerce spending in the U.S. exceeded $1 trillion over the past twelve months. A milestone that pre-pandemic trends predicted would only occur in 2024.
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Shopify now allows customers to search for items across all Shopify merchants. The Shop app is thus a complete marketplace. However, the functionality is yet to be available to all users.
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Amazon's growth is slowing, but so has the overall e-commerce sector. Its sales are still in-line with the pre-pandemic trendline.
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80-90% of search results on Walmart ship from its warehouses. Over the past few years, Walmart has pushed its third-party sellers to offload fulfillment to Walmart.
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