Is Amazon FBA becoming more competitive in 2022?

Over the past five years, the number of new sellers joining Amazon platform has remained relatively constant. Is Amazon FBA becoming more competitive in 2022 than 5 years ago?

New seller continue to join Amazon FBA program

According to a study conducted by Marketplace Pulse, over 2,000 new sellers joined Amazon’s global platforms every day since 2016. If one seller list product on multiple marketplace, it is only counted once. In fact, most of them selling in Europe sell on multiple marketplaces. In the U.S., Amazon has been adding over seven hundreds new sellers every day.

Many of these sellers never actually become active on Amazon. However, there are still around 800 new sellers get their first review on the platform every day. This level of new sellers has remained stable since the company started to recruit more Chinese sellers in 2016.

New Sellers on Amazon Globally Based on First Review Date

The number of new sellers on Walmart’s platform joined in a month can be as many as Amazon’s in a day. The total number of sellers on Target’s platform is less than Amazon’s new sellers joined in a day. However, compared to Amazon, other platforms like eBay and Etsy add more sellers.

Amazon FBA has stricter rules in identifying fraud

The number of new sellers on Amazon’s platform is a positive sign for the company as it can increase the number of resources it has to spend on identifying and preventing fraud. It also helps boost the likelihood that some of the new sellers will succeed. However, the sheer number of sellers on Amazon prevents the company from directly managing the platform. Instead, Amazon uses automation to process the majority of the tasks related to identifying and preventing fraud. This method is the only way it can keep up with the increasing number of new sellers.

The thousands of new sellers on Amazon can also boost the number of products that the company’s catalog can offer. However, the number of products in the first page is mostly what consumers see. This is because only a small percentage of consumers see will flip to the second pages when he or she search for certain keywords. As a result, more sellers are merely adding their product offering to the denominators.

The steady increase in the number of new sellers on Amazon shows that the company is still maintaining its control over the platform. For instance, it has stricter enforcement over the verification of identity while maintaining the inflow of new sellers.

To be updated with all the latest news, offers and special announcements.

Category

Latest Posts