More than 70% of Products Sold on Amazon are Made in China

November 3, 10:01 am

As the single largest player in the ecommerce industry, Amazon generates between 10% and 15% of global online sales. In its home market, the US ecommerce giant makes up to 40% of total ecommerce sales and generates the highest revenue in three out of four major product categories, outperforming competitors by a large margin. But ironically, while Amazon is seen as emblematic of American success in ecommerce, Chinese products are the backbone of its marketplace.

According to data presented by AltIndex.com, more than 70% of all products sold on Amazon are made in China.

Amazon Sells 2.4 Times more Products from China than from the United States

Although Amazon is often associated with American innovation, consumer convenience, and technology, in reality, a large share of its product offerings comes from Chinese sellers or manufacturers.

To compete on price and variety, the US ecommerce giant relies heavily on third-party sellers, many of whom are based in China. These sellers can offer products at lower prices due to lower manufacturing costs, which are especially appealing to price-sensitive customers. A survey conducted by Jungle Scout and published by the ECDB shows just how significant their share in Amazon's sales is.

Statistics show that 71% of the products that wholesalers and retailers sell on Amazon are produced in China, or 2.4 times more than in the United States, illustrating China's importance for Amazon's business. US products have a much smaller share and account for 30% of all total goods sold through the US e-commerce giant, while India stands in third place with a 14% share.

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.

Chinese Vendors are the Backbone of Amazon's 3P Seller Services

While it might be ironic that Chinese vendors have become the backbone of Amazon's third-party (3P) seller services, the ecommerce giant's second-largest revenue stream, the truth is that Amazon is making a massive profit from selling their products and items. Their revenue share has increased significantly over the past five years.

In Q3 2024, 3P sellers generated 60% of Amazon's total online sales, 10% more than five years ago. This figure will likely continue growing in the future, as Amazon recently adjusted fulfillment rates and introduced a low-inventory fee that privileges successful sellers with high inventory levels to make 3P sales even more appealing to vendors.

Statistics also show that Amazon's successful 3P selling formula has brought the company huge profits and helped its sales skyrocket over the years. Since 2019, the ecommerce giant earned almost half a trillion dollars through its 3P services.

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