💔 Amazon loyalty cracks
For years, Amazon was the go-to platform for sellers. But in 2024, rising fees and complex rules forced many to consider alternatives. Amazon introduced new charges, like inbound placement fees, which hurt profitability. A survey of 2,000 sellers by Jungle Scout highlighted "expanding to other platforms" as a top priority for 2024. Many sellers now say the platform is becoming harder to navigate. “Amazon has become complicated,” said Kate Ames, a seller who’s pivoting to TikTok Shop.
📈 TikTok and Walmart rise
TikTok Shop and Walmart Marketplace are gaining popularity. TikTok Shop offers simplicity and rapid growth, with some sellers seeing sales increase by 20% monthly. Walmart Marketplace, with its Amazon-like fulfillment network, attracts sellers looking for a smooth transition. "Sellers are expanding beyond Amazon to protect margins," said Jon Elder of Black Label Advisor. Walmart’s fees are often lower, while TikTok’s viral nature drives significant traffic.
⚖️ Challenges for sellers
Shifting away from Amazon isn’t without risks. TikTok faces possible U.S. bans, and Amazon penalizes merchants who sell cheaper on other platforms. Yet, sellers like Eva Hart have opened Shopify stores to diversify. Hart’s margins on Shopify are double compared to Amazon. Meanwhile, Temu and Shopify offer competitive rates that appeal to budget-conscious sellers. As George Hatch from Pattern noted, “Brands are looking to save money by exploring other channels.”
🔮 What’s next for Amazon?
Amazon remains dominant, with third-party sellers accounting for 60% of sales. In 2023, over 10,000 sellers surpassed $1M in sales. However, growing competition and seller frustration may reshape the landscape. Ames says leaving Amazon entirely is unlikely but diversifying is critical. “It’s hard to imagine leaving Amazon,” she said, “but sellers need options.” With new platforms like TikTok Shop and Walmart growing fast, 2025 might see a new e-commerce balance.
Are TikTok and Walmart the new e-commerce leaders?
