The Ecomcrew Ecommerce Podcast E619: % Of Chinese Sellers Declining? It's a Lie.
Oct 15, 2025
The podcast dives into the puzzling decline of Chinese sellers on Amazon. It explores how many are shifting to U.S. LLCs to evade strict tax regulations in China. The discussion highlights the panic among sellers due to new tax reporting rules and how these changes impact their operational strategies. Listeners learn about the 'golden tax' system and the misleading nature of seller statistics, revealing that many still operate from China while appearing as U.S. entities. It's an intriguing look at the evolving landscape of e-commerce.
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Reported Decline Is Misleading
- Public datasets show the share of Chinese sellers on Amazon falling, but those numbers mask deeper changes.
- Dave Bryant argues the apparent decline is misleading because many sellers change registered countries.
Spike In U.S. LLCs Hints At Shift
- Bloomberg found a 400% jump in U.S. retail LLC formations this year.
- Dave Bryant links that surge to Chinese sellers creating U.S. LLCs rather than leaving Amazon.
Governments Catch Up To Marketplaces
- Governments began tracking third-party marketplace income only recently.
- Dave Bryant says authorities realized most Amazon revenue comes from third-party sellers and started reacting.