Amazon Sellers Forced to Switch to TikTok and Walmart Due to High Fees
Due to rising commission and shipping fees on Amazon, many third-party sellers have seen their profit margins shrink, forcing them to adopt a multi-platform strategy, viewing TikTok Shop and Walmart as critical revenue supplements.
What are the key facts?
- 1Fee proportion: Over 50% of some sellers' sales go to platform fees
- 2Trend: Sellers are diversifying into TikTok, Walmart, and independent sites
- 3Comparison: 2011 fee proportion was about 35%
What happened?
Forbes reports that Amazon sellers are facing skyrocketing operating costs. Some sellers reveal that over 50 cents of every dollar earned goes towards various platform fees. To continue operating, many experienced sellers have started to quickly shift towards diversifying into channels like TikTok Shop, Walmart, and independent sites. Compared to 2011, platform fees have significantly increased, from about 35% of seller sales at that time. This trend indicates that more sellers will have to reduce their dependence on a single platform and seek other profitable pathways to offset rising cost pressures.
What does this mean for cross-border sellers?
Sellers need to recognize the increasing risk of dependence on a single platform and should assess the feasibility of multi-channel operations. Top priority: start experimenting with setting up a store on TikTok Shop or Walmart this week to spread risk.