Despite being an American e-commerce giant, Amazon relies heavily on Chinese-made products to maintain its competitive edge. Data from AltIndex.com reveals that over 70% of products sold on Amazon are manufactured in China.
This reliance on Chinese vendors stems from their ability to offer products at lower prices due to lower manufacturing costs. A survey by Jungle Scout shows that 71% of products sold by wholesalers and retailers on Amazon are produced in China, 2.4 times more than those made in the United States.
While US-made products account for 30% of total goods sold on Amazon, other countries lag significantly behind. India ranks third with a 14% share, followed by Germany (6%), and Mexico, Japan, and Vietnam each with 5%.
Chinese vendors play a crucial role in Amazon’s third-party (3P) seller services, the company’s second-largest revenue stream. In Q3 2024, 3P sellers generated 60% of Amazon’s total online sales, a 10% increase from five years ago. This trend is expected to continue as Amazon adjusts its fulfillment policies to favor high-volume sellers.
Amazon’s 3P selling model has proven highly profitable, generating nearly half a trillion dollars in revenue since 2019. The company’s reliance on Chinese vendors highlights the complexities of global trade and the challenges of balancing national identity with competitive pricing and product variety in the e-commerce landscape.
