Amazon's seller ecosystem resembles a turbulent ocean, with constant ebbs and flows as new entrants arrive while others depart. Yet within this seemingly brutal competitive environment, a group of veteran sellers has not only survived but thrived, weathering platform fluctuations and market cycles with remarkable resilience. What survival strategies have these seasoned merchants mastered?
The Dynamic Evolution of Amazon's Seller Landscape
Amazon's seller community remains in constant flux. While thousands of new stores open daily, the platform's influx continues to outpace departures. Statistics reveal that sellers who established their presence before 2017 now constitute the majority, accounting for 73.02% of active merchants. Among these, pioneers from before 2016 represent the largest segment at 42.15%. In contrast, new store openings have significantly slowed since 2019, with 2022 newcomers comprising just 2.39%.
Industry executives confirm this trend. A senior executive from a leading cross-border payment company noted substantially fewer new merchant registrations this year compared to last, prompting their business shift from B2C cross-border sellers to B2B export clients.
The Enduring Advantages of Veteran Sellers
After successive market shakeouts, many inexperienced or undercapitalized newcomers have exited, leaving established sellers as the backbone of Amazon's GMV growth. MarketplacePulse data shows that among top 10,000 sellers, 40%-45% remain active after three years, with 50%-55% maintaining their ranking after two years.
These veteran merchants sustain their success through several key advantages:
- Early-mover benefits: Pioneering sellers capitalized on initial platform traffic and policy advantages, enabling faster customer acquisition and brand building.
- Algorithmic preference: Amazon's systems prioritize sellers with established transaction histories and compliance records, recognizing their role as platform stabilizers.
- Experience accumulation: Seasoned merchants possess invaluable operational knowledge and market insights from navigating multiple business cycles.
Data confirms that earlier entrants demonstrate greater longevity, with 2015-2017 cohorts maintaining high activity and ranking levels, becoming true "friends of time" in Amazon's ecosystem.
The Strategic Shift to Product Refinement
A notable trend among successful veterans involves significant SKU reduction and specialization. Since 2015, the proportion of top sellers offering over 1,000 products has steadily declined from approximately 33% to just 12% by 2021.
This reflects broader industry recognition that the era of expansive, resource-intensive product portfolios has ended. Market leaders including Saiwei Era, EBM Network, and Youkeshu have all streamlined their offerings.
For example, IPO-bound Saiwei Era reduced its store count by nearly 1,000 in 2020 while establishing over 800 subsidiaries to manage previously individual-operated stores. Similarly, EBM Network closed 86 stores that year, while Youkeshu dramatically scaled back its once-million-SKU operation.
Industry surveys reveal only a minority now practice broad product coverage, with 48% focusing on specialized offerings and 33% maintaining limited multi-category portfolios. Notably, 16% operate with fewer than 10 SKUs, while 26% manage 10-100 items. Large-scale operations with over 5,000 SKUs represent just 17%.
This specialization yields tangible results. One Xiamen-based merchant with three stores (25-50 SKUs each) generates tens of millions in revenue with healthy margins. Similarly, a Guangzhou couple operating a specialized store achieved over 100 million yuan in sales. In Shenzhen, numerous focused sellers demonstrate that deep product knowledge, supply chain control, and customer service can yield sustainable profits without massive scale.
Chinese Sellers: Recalibration After Platform Adjustments
Leveraging the world's most robust supply chain, Chinese sellers became Amazon's GMV growth engine. However, certain competitive practices including review manipulation prompted Amazon's April 2021 crackdown, affecting major brands including Mpow, Aukey, and Fairywill - the latter having earned 75,000 reviews and regular "Top 5" rankings before suspension.
This enforcement reversed Chinese sellers' market share trajectory. After climbing steadily from 16% (2017) to 42% (2020), their portion fell to 33% by 2021's end. Many affected sellers have since diversified to platforms like Walmart and AliExpress, with Walmart's WFS fulfillment service proving particularly attractive for its FBA-like capabilities.
Notable brands including Mpow, Aukey, and Ravpower have successfully transitioned, with some products now offering two-day delivery through Walmart's network.