Sellers on Amazon need to look beyond surface-level statistics. This episode reveals that the reported decline in Chinese sellers is a strategic maneuver to optimize tax liabilities by establishing US LLCs, not an actual exodus. Understanding these underlying shifts is crucial for a competitive advantage and accurate market analysis.
There have been reports of a significant decline in the number of Chinese sellers on Amazon, according to SellerSnooper and Marketplace Pulse, but their disappearance is not that simple. Dave dives into why Chinese sellers are disappearing from Amazon and where they went. Today's episode is sponsored by Sellerboard. Sellerboard helps users track sales, refunds and fees in real time, and even counts your indirect expenses in final profit. Beyond analytics, Sellerboard also streamlines operations with smart portfolios for PPC, inventory forecasting & management and more! Try Sellerboard free for 2 months — no credit card required. Just go to sellerboard.com/ecomcrew and get clarity on your margins today. Back in 2022, we did a report on how many Chinese sellers there are on Amazon. The number was up to 55%. Granted that this was back in 2022, you'd expect the number of Chinese Sellers to increase. As of October 2025, the number has drastically lowered to ~30%. This would normally be cause for celebration but the answer isn't that simple. A lot of Chinese sellers have been opening up US LLCs to dodge paying taxes in China, where they aren't as lenient with counting expenses against your business. Timestamps 00:00 - The Decline of Chinese Sellers on Amazon 02:42 - Tax Regulations and Their Impact 05:54 - The Golden Tax System in China 09:03 - Panic Among Chinese Sellers 11:53 - The Shift to US LLCs 14:54 - The Reality of Seller Statistics As always, if you have any questions or anything that you need help with, leave a comment down below if you're interested. Don't forget to leave us a review on iTunes if you enjoy our content. Thanks for listening! Until next time, hap