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For Chinese companies suspended by Amazon or worried that they might be next, finding alternatives isn't easy. Walmart last year launched an FBA rival, Walmart Fulfillment Services, for the retailer's online marketplace, but so far it isn't a great option, according to Jason Lee, co-chief executive officer of FBAFlipper, a Shenzhen-based advisory firm. "Amazon is just addicting because it has the traffic already," says Lee, who also points to the support network that companies can use when selling on Amazon. "There's an ecosystem-people with courses [on] how to sell on Amazon, logistics providers, payment companies." Walmart's service doesn't have them, he says.
China-based retailers account for about half of Amazon's marketplace top sellers, up from 13% in 2016, according to Marketplace Pulse. Boosted by sales on Amazon, Anker Innovations Technology Co., which hasn't been accused of any ratings manipulation, last year sold about $1.4 billion of mobile chargers, cables, power cords, and other accessories, up from $378 million in 2016. During that period, Amazon's marketplace business continued to expand and overtook its online retail business, where Amazon buys inventory from wholesalers like a traditional store. Big-box competitors such as Walmart Inc. and Target Corp. are copying Amazon's online marketplace model.
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For Chinese companies suspended by Amazon or worried that they might be next, finding alternatives isn't easy. Walmart last year launched an FBA rival, Walmart Fulfillment Services, for the retailer's online marketplace, but so far it isn't a great option, according to Jason Lee, co-chief executive officer of FBAFlipper, a Shenzhen-based advisory firm. "Amazon is just addicting because it has the traffic already," says Lee, who also points to the support network that companies can use when selling on Amazon. "There's an ecosystem-people with courses [on] how to sell on Amazon, logistics providers, payment companies." Walmart's service doesn't have them, he says.
China-based retailers account for about half of Amazon's marketplace top sellers, up from 13% in 2016, according to Marketplace Pulse. Boosted by sales on Amazon, Anker Innovations Technology Co., which hasn't been accused of any ratings manipulation, last year sold about $1.4 billion of mobile chargers, cables, power cords, and other accessories, up from $378 million in 2016. During that period, Amazon's marketplace business continued to expand and overtook its online retail business, where Amazon buys inventory from wholesalers like a traditional store. Big-box competitors such as Walmart Inc. and Target Corp. are copying Amazon's online marketplace model.
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