China's cross-border e-commerce has risen strongly in the United States, and they have used social networking and low-cost product strategies to accumulate a huge number of American users, eating into Amazon's market share in the United States**.
The rise of China's emerging e-commerce platforms, Temu and SHEIN, has attracted the attention of Amazon's top executives. Amazon began to "fight back":The company is trying to benefit consumers and merchants by drastically cutting the share of clothing sales, creating a second buy box for consumers, and reducing commissions on MFN projects.
In January this year, Amazon slashed its share of clothing sales, according to ** reportsReduced commissions to 5% for items under $15 and 10% for items between $15 and $20, up from 17% of all sales. Maria Boschetti, a spokesperson for Amazon, said the purpose of the commission adjustment is to "increase product diversity and be more competitive."
Amazon is also considering other measures, including the creation of a second buy box for U.S. consumers. The Buy Box is an area in the top right corner of the Amazon product listing page that contains buttons to "Buy Now" and "Add to Cart."
Under the current Buy Box mechanism, Amazon uses an algorithm to determine which seller's products will be displayed in the Buy Box. The main considerations of this algorithm include delivery speed, cancellation rate, etcSellers are often rewarded for using Fulfillment by Amazon (FBA) services, which lead to faster delivery speeds and higher customer satisfaction.
The second buy box proposal is to add another purchase option on the product detail pageThis option will place more emphasis on the ** of the merchandise, rather than the speed of delivery。This means that even though some items may have a longer lead time than those using FBA services, these items will be able to get more and more sales opportunities as long as they are lower.
This practice is already in place in the EU as part of Amazon's antitrust commitment to regulators. According to reports, Amazon executives have been discussing the possibility of adding this feature to all **, including the US marketplace since 2019.
According to reports, Amazon has also discussed reducing its commission on the MFN (Merchant Fulfilled Network) program for self-fulfilled sellersso that these sellers can more easily compete with ** on temu and shein.
Under the MFN model, sellers retain full control over the logistics process, but still pay Amazon's standard commission, which typically varies by product category and is around 15% of sales**. By reducing the commissions you have to pay to sell on Amazon, self-fulfilled sellers can operate at a lower cost, potentially offering a more competitive price**.