Four strategies, one common goal: Rival marketplaces are testing different tactics to whittle away at Amazon’s dominance and win over sellers.
- Lower costs: Alibaba-owned AliExpress is offering reduced shipping fees and a smaller cut of sales than Amazon to lure established brands, Bloomberg reports. The move is primarily targeted at key markets in Europe and Latin America.
- Aggressive promotions: After a temporary pullback in the US, Temu is staging an aggressive comeback by enticing merchants with steep discounts to restock for the holiday season, scrapping import fees for buyers, and ramping up advertising.
- Operational support: Shein launched Xcelerator, a program that gives fashion brands access to its vast apparel manufacturing network—if they also sell on Shein’s marketplace. In return, brands receive services like warehousing, sales support, and sample development.
- Omnichannel integration: Walmart is testing in-store displays and AI tools for marketplace sellers. At its late-August seller summit, it highlighted a Cypress, Texas, Supercenter where QR codes on select items link shoppers to its online assortment. It also announced expanded next-day delivery in major cities via Walmart Fulfillment Services and an AI-powered listing tool to speed launches and boost conversions. Walmart is also waiving referral fees on qualifying toys for the holiday season.
The 800-pound gorilla: Those challengers face an entrenched incumbent in Amazon.
- With a marketplace that has been around for a quarter century, Amazon has long-standing seller relationships.