Need to buy some paintbrushes? You might start in the same place that millions of shoppers do every day: by opening the Amazon app. The search results show a plethora of almost indistinguishable brushes sold by brands like CNMTCCO, HTHL, and Skaaisont.
But it’s not just paintbrushes: Look for cat food bowls, find items from YUOHEE, yoga mats from Keplin, and water bottles from AOHAN.
These aren’t familiar brand names — many of them seem randomly generated — but when searching millions of everyday products on the world’s largest online retailer, shoppers are faced with a sea of bargain, seemingly interchangeable Chinese brands vying for attention.
The number of Chinese sellers on Amazon has exploded in recent years as the company prioritizes independent sellers over products it sources itself: As of early July, 50.8% of Amazon’s top sellers were based in China, up from 25.8% at the end of 2018, according to research site Marketplace Pulse.
Amazon, which celebrated its 30th anniversary on Friday, is going even further: At a presentation in Shenzhen last month, the company told manufacturers it would launch services “direct from China,” poised to challenge fast-growing retailers such as Shein and Temu that are threatening Amazon’s dominance in online shopping.
The plan is for the company to sell low-cost goods from warehouses in China and deliver them to Western customers’ doorsteps. Though the company touts instant gratification, goods from China take several days to arrive. The service is expected to be available by Christmas, but at least initially, the products will be featured in a separate section of the app, rather than being offered alongside other products.
The battle for e-commerce dominance
For the first time in years, Amazon’s e-commerce dominance is under threat. Clothing-focused Shein and household goods specialist Temu have risen from obscurity to fame, something Chinese predecessors Wish.com and AliExpress failed to do.
Both companies spent heavily on marketing and offered ultra-low prices, showing consumers that they were willing to sacrifice convenience and brand recognition to save a few pounds. Enders Analysis estimates that spending on Shain rose 44% last year to $42.3bn (£33bn). Spending on Systems grew from almost nothing to $14bn and is expected to more than double this year.
