?? Amazon Profits Down? Here’s your fix-it flowchart

?? HOW 2024 RE-SHAPED CHINESE E-COMMERCE

Brands Factory recently highlighted how 2024 brought major shifts in global e-commerce, most notably Amazon’s fierce rivalry with Temu and the rise of semi-managed logistics.

Combined with stricter international regulations and changing consumer preferences, these factors are shaping new opportunities—and new risks—for Amazon sellers.

Intensifying Competition

Amazon vs. Temu

• Temu has now surpassed Amazon’s global user base.
• By October, Temu became the second most-visited e-commerce site worldwide.
• Over 60% of top Chinese Amazon sellers have begun transitioning to Temu.

Amazon’s Countermove

• Launched Haul, a low-price marketplace for sub-$20 items, to compete directly with Temu.
• Price and speed are now crucial differentiators. Amazon’s traditional advantages in logistics are being challenged by Temu’s cost-focused model.

Evolving Logistics Models

Semi-Managed Logistics

• Temu, Shein, AliExpress, and TikTok Shop integrate sellers’ shipping systems to shorten delivery times to one week or less.
• Larger and more diverse product categories (like food, books, and home goods) are now feasible for cross-border shipping.

Why It Matters

• Fast, flexible shipping attracts customers wary of the traditional two-week wait times common in cross-border e-commerce.
• This model is expanding beyond cross-border platforms, as domestic giants like Taobao and Ele .me roll out similar services.

Heightened Global Regulations

Stricter Trade Policies

• The U.S. is considering lowering its $800 duty-free threshold and tightening T86 clearance rules.
• Other countries (Brazil, Malaysia, South Africa) have introduced new VAT requirements, raising costs for Chinese exporters.
• Proposed tariffs (up to 60% on some goods) could further complicate cross-border trade.
• Chinese companies are setting up overseas factories and R&D centers to comply with local regulations and reduce tariff impact.

Shifting Away from “Stocking Mode”

Once popular for rapidly listing low-cost items across many categories, “stocking mode” is no longer enough to sustain growth.

What’s Changing

• Platforms now enforce stricter rules, demanding quality over sheer quantity.
• Brand building and content-driven marketing are increasingly important. Short videos, live streams, and social media engagement drive consumer trust and loyalty.

What Amazon Sellers Should Do

1) Focus on Competitive Pricing & Shipping

• Stay vigilant about costs and delivery speed to match the budget-friendly platforms.

2) Strengthen Brand Identity

• Move from a mass-listing approach to creating a recognizable, content-driven brand presence.

3) Adapt to Regulations

• Monitor policy changes (duty thresholds, VAT updates, tariffs) and adjust product sourcing or warehousing as needed.

4) Expand Your Channels

• Reduce reliance on Amazon by exploring other e-commerce marketplaces and offline opportunities.

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Mansour Norouzi, a BDSS XI Iceland speaker and Dream 100 member, created a free tool called AMC Navigator GPT to simplify learning Amazon Marketing Cloud (AMC). His goal is to make learning and using AMC more accessible for everyone.

After reading through all the official AMC documentation and compiling key resources into Google Docs, he used that material to build a comprehensive library.

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