Chinese products drive Amazon’s e-commerce dominance, reveals study

Amazon, the world’s largest e-commerce platform, generates between 10% and 15% of global online sales, with a commanding 40% share of the US e-commerce. However, despite being emblematic of American retail success, new data reveals that over 70% of the products sold on Amazon are sourced from China. This highlights the crucial role Chinese manufacturers and sellers play in powering Amazon’s marketplace.

According to data from AltIndex.com, Amazon sells 2.4 times more products from China than from the United States, underscoring the extent to which Chinese goods dominate the platform. US-made products make up only about 30% of the total, while India follows at a distant third with 14%.

All other top countries that produce items sold on Amazon have much smaller shares. The ECDB data show roughly 6% of products wholesalers and retailers sell on Amazon come from Germany, while Mexico, Japan, and Vietnam followed with a 5% share each.

Amazon’s third-party (3P) seller model is central to its success, and it’s Chinese vendors who are the backbone of this segment. These sellers benefit from lower manufacturing costs, allowing them to offer products at competitive prices.

In Q3 2024, 3P sellers accounted for 60% of Amazon's total sales, a sharp increase from 50% five years ago. With Amazon making significant adjustments to its fulfilment policies—such as low-inventory fees for successful sellers—this share is expected to grow.

The reliance on Chinese vendors has proven immensely profitable for Amazon. Since 2019, the company has generated nearly half a trillion dollars from 3P services. The low-cost goods sold by Chinese vendors, including electronics, home goods, and apparel, are increasingly appealing to Amazon's price-sensitive customers.

While Amazon continues to lead in the U.S. e-commerce space, its marketplace is deeply global, with China playing an indispensable role in maintaining its competitive edge. Despite the irony of an American company relying so heavily on Chinese products, the relationship is mutually beneficial—Amazon offers Chinese manufacturers unparalleled access to global consumers, while bolstering its own profits.