(This is a little lengthy, but you should read it)
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There has always been a stigma towards American companies selling Chinese imported products deteriorating our American work force and increasing our reliability on China, but we've come to realize this specific situation isn't even a blip on the radar in comparison to the exponentially increasing invasion of Chinese Direct sellers in the American marketplace.Â
When American companies import Chinese products for resale, the overwhelming majority of revenue/profits generated benefit the American company and it's employees. I am not encouraging American companies importing products, this is simply a preface for what I'll explain next.Â
The major issue is when no American companies are involved, and there is no benefit to America. This is the case with Chinese Direct Sellers. These are Chinese companies that are importing products into American marketplaces. The revenue/profits generated by these situations DO NOT benefit Americans or our economy.Â
Even worse, it makes competing in the marketplace nearly impossible whether American companies try to manufacture stateside, or even import products. The Chinese direct sellers have an astronomical advantage to drive prices to the floor. This is great for American consumers' pocketbooks, but only in the very short term.Â
As a consumer, especially on Amazon, you pretty much know the majority of products for sale are imported from China. But without expensive data software or spending an ungodly amount of time researching who is actually behind the products being sold, you would have no clue as to how many of them are actually sold directly from Chinese companies/sellers. ~50% of the top Amazon sellers in the American market place are, you guessed it, Chinese based.Â
When we discovered this insane situation a little over a year ago, we decided to go full force on building our Amazon sales channel with a mission to launch competing products at affordable prices to take back as much of the Chinese direct sellers market share as possible and put that money back in the hands of Americans.
Before understanding the Amazon marketplace and the severity of Chinese Direct sellers on Amazon, we were generating ~$5000/month in revenue on Amazon (January 2023).
The implementation of our Amazon market analysis software opened our eyes to the scale at which Chinese Direct Sellers were dominating the Amazon channel. We identified specific product types, including firearm accessories, heavily infiltrated with Chinese sellers, and put a plan in motion to launch competing products and take some of this money back. We immediately invested in an additional $600,000 of advanced machinery that allowed us to produce new products at the scale and affordability necessary to compete.Â