E583: I Found Where the Biggest Amazon Sellers Operate in China

The Ecomcrew Ecommerce Podcast

After visiting a conference recently, a friend of mine told me about a place in where all of the biggest Amazon Sellers (and all the black hat tactics came from) in China congregate: China's New South City. In this episode, Dave talks about his visit to New South City in China, what he found while he was there, and why this place exists.

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Ever heard of China South City? It's where all of the top Chinese Amazon sellers congregate and work together. This is also the place where Chinese black hat Amazon tactics comes from.

Dave decides to visit China South City during a recent trip to Asia, and shares what he found, some insider information that he found out about after talking to sellers there, and some of the black hat tactics Chinese sellers are using.

The Big Takeaway:

• China South City is a massive hub of the biggest Chinese Amazon sellers in Shenzhen, China.
• Chinese sellers are getting subsidies from the government to encourage exports into other countries.
• Having all sellers within the same area also encourages collaboration and networking among sellers, unlike in the US or the West in general.
• Chinese sellers inspect a higher percentage of their products more than Western sellers.
• Many Chinese sellers operate multiple Amazon accounts for security reasons.
• The 2021 Amazon ban wave had a significant impact on Chinese sellers; reducing China's overall trust in Amazon.
• Because of the ban wave, Chinese sellers are also diversifying their sales channels beyond Amazon.
• Temu is starting to become one of the key places for growth among Chinese sellers.
• Live selling is a major trend in China, with dedicated studios for streaming in each floor.

Timestamps:

• 00:00 - Introduction to China South City
• 02:53 - The Structure and Purpose of China South City
• 06:10 - The Community of Amazon Sellers
• 09:00 - Operational Strategies of Chinese Sellers
• 11:52 - Challenges Faced by Chinese Sellers
• 14:45 - The Impact of Amazon's Account Suspension Sweep
• 18:05 - Tactics and Strategies of Chinese Sellers
• 20:57 - Diversification Beyond Amazon
• 23:47 - The Rise of Live Selling in China
• 27:12 - Conclusion and Final Thoughts

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Thanks for listening!

Until next time, happy selling!