Why more and more Chinese retailers are leaving Amazon USA — causes, consequences & opportunities for e-commerce

Introduction:
Amazon's US marketplace was long considered an El Dorado for Chinese online retailers. But there is currently a surprising trend: More and more Chinese retailers are leaving Amazon.com. This change has far-reaching effects on global e-commerce. In this article, we analyse the causes of this retreat, highlight the consequences for buyers and sellers, and show how this creates new opportunities for European retailers — particularly for the German market.

1. Chinese retailers on Amazon USA — a success story with cracks

For years, Chinese sellers dominated parts of the Amazon marketplace in the USA. Low prices, fast production and direct shipping via Amazon FBA (Fulfillment by Amazon) made many of these retailers extremely successful. But now, 2024/2025, the wind is changing.

According to recent market analyses, the share of Chinese sellers on Amazon.com has significantly reduced since 2022. While they used to account for up to 63% of new sellers, this figure is falling sharply, according to Marketplace Pulse.

2nd Reasons for withdrawing from the US marketplace

a) Stricter Amazon rules and bans

Amazon has tightened its policies regarding product quality, reviews, and returns policy. Many Chinese retailers were banned due to fake reviews or low-quality products. The “fake review crackdown” has crippled numerous accounts.

b) Increasing costs due to logistics & customs

Due to global crises and geopolitical tensions, shipping costs have exploded. Customs processing became more complex, particularly in trade between China and the USA. For many retailers, the effort is no longer worthwhile.

c) Moving to own platforms

Instead of relying on Amazon, many Chinese providers are now building their own e-commerce platforms such as Temu, Shein or use channels such as TikTok Storeto trade directly with customers — without intermediaries or platform fees.

d) Competitive pressure and poor margins

The extreme price war on Amazon USA has caused profit margins to shrink. Many retailers prefer to invest their resources in less saturated markets — such as Southeast Asia or Europe.

3rd Implications for buyers and the US market

• Less cheap goods: The disappearance of Chinese retailers means fewer extremely cheap products.
• Better quality: Less product glut means more focus on quality and customer satisfaction.
• Higher prices possible: Less competition can lead to price increases.

4th Opportunities for German and European retailers

The retreat of Chinese dealers opens new market gaps — both on Amazon USA and on other international platforms.

What does that mean in practice?

• Better visibility for German brands with quality standards.
• More trust for US customers compared to “Made in Germany” products.
• Growth potential in international business, e.g. via Amazon Global Selling.

5th What should online retailers do now?

• Check international marketplaces: Amazon USA, Canada, UK or UAE offer new opportunities.
• Optimize customs & shipping: Working with fulfillment service providers can help.
• Drive brand development: Authentic brands are listed preferentially by Amazon.
• Optimize SEO & content: If you want to remain visible, you have to work with professional product texts and a targeted keyword strategy.

6th Market adjustment as an opportunity for quality and innovation

The decline in Chinese retailers on Amazon.com is part of a natural market adjustment. E-commerce won't disappear — it will more qualitative, brand-oriented and more customer-friendly. For German retailers with a professional setup, there is a rare opportunity to gain market share and grow internationally in the long term.

‍

If you have any questions about our blog posts, our repricing software or our consulting solutions, please contact us at:

email: support@metaprice.de

‍Telephone: 0214/33010250

Whatsapp: 0163/2202270

About our free test accounts:

‍Free test account for our Amazon Repricer

‍Free test account for our eBay Repricer‍

‍Free test account for our Kaufland Repricer

‍

‍