Chinese Sellers Are Gaining On Walmart Marketplace At Expense Of U.S. Merchants

Reference: Found here

Walmart Marketplace is shifting toward Chinese sellers, following in the foosteps of Amazon where China already represents more than half of merchants .

Some 41% of new sellers on Walmart Marketplace were from China in 2024, up from 16% in 2023, according to e-commerce research company  Marketplace Pulse .

"The speed of the transformation is particularly concerning for U.S.-based sellers because it suggests the structural advantages Chinese sellers enjoy are becoming more impactful, even as some of these advantages begin to face increased scrutiny," said Ben Donovan of Marketplace Pulse in an article.

One advantage Chinese sellers have is controversial trade loophole known as "de minimis," which allows duty-free shipments on shipments worth less than $800.

Consumer advocates have told ConsumerAffairs that Chinese sellers are using the de minimis loophole to deflate the value of their shipments to avoid taxes and skirt product-safety inspections.

Product-safety warnings surged in 2024 largely because of goods coming from China, ConsumerAffairs previously reported, highlighting concerns about poor standards among products sold online.

Dieter Holger is a data reporter for ConsumerAffairs. His work has appeared in The Wall Street Journal, MarketWatch, PCWorld and dozens of other outlets. He holds a Master of Science in computational and data journalism from Cardiff University and a Bachelor of Arts in philosophy from UC Santa Cruz. Write to him at dholger@consumeraffairs.com.