Only 1% of Amazon.com merchants are selling outside of the U.S.

August 16, 2024 by
Frank Calviño

Most of Amazon's U.S. sellers are limited to selling in the United States. Despite attempts by the company headed by Andy Jassy to encourage cross-border e-commerce, less than 1% sell outside the continent.

According to research by Marketplace Pulse, 12% of U.S. sellers sell on Amazon Canada and 5% on Amazon Mexico. Many use Amazon's Remote Logistics with Amazon Logistics service, which allows sellers to sell to customers in Canada, Mexico and Brazil without having to ship inventory to those countries. Due to its proximity to the U.S., Canada has more successful sellers from the U.S. than from Canada.

Amazon's largest international markets are in Japan, Germany and the UK, each several times larger than Canada or Mexico. However, only a few thousand U.S. sellers sell there and in other European marketplaces, less than 1% of the total. More sellers from Japan and the UK sell in the US than vice versa. There is little overlap between Amazon in Europe and the U.S.: European sellers represent a small percentage of U.S. volume, and few U.S. sellers are booming in Europe.

A recent report revealed that U.S. sellers on Amazon are losing market share to international sellers and now represent less than 50% of sellers. Specifically, 48% of the top third-party sellers on Amazon's U.S. marketplace are U.S. companies, the lowest level ever recorded. The recent high was 55% in March 2022.

China is the goal

The report also reveals that the majority of sellers on Amazon's marketplace in the U.S. are domestic or Chinese companies (other countries have a relatively low presence). Chinese sellers have been increasing their market share on Amazon for years.

In this regard, the company founded by Jeff Bezos admitted for the first time the "significant" market share of Chinese sellers in its marketplace. As reported by Marketplace Pulse, in its annual Form 10-K filing with the U.S. Securities and Exchange Commission (SEC), Amazon added a warning about the risks to which its international operations expose it.

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