Core Insights - The article highlights the significant challenges faced by cross-border sellers on Amazon due to new tax regulations and rising operational costs, leading to a crisis in profitability and compliance [1][2][3] Seller Status: Tax Compliance and Revenue Pressure - The introduction of new tax regulations has made compliance a major concern for sellers, with small and medium-sized sellers experiencing a drastic reduction in profits, with some reporting profit halving due to increased tax burdens [2] - Sellers who previously utilized personal accounts for transactions are now facing substantial back taxes, with some needing to pay up to 25% in personal income tax, leading to operational cutbacks [2] - Larger sellers, while better prepared, are still facing increased costs and tax burdens, with some reporting a 15% reduction in input tax deductions, resulting in significant additional tax payments [2] Revenue and Profit Discrepancies - Sellers are experiencing a "scissors gap" between revenue and profit, with advertising costs rising sharply and natural traffic declining significantly, leading to a situation where increased sales do not translate into higher profits [3] - The average profit margin for Amazon's small and medium sellers has decreased by 6.8 percentage points year-over-year, with nearly 30% of sellers reporting losses [3] Operational Challenges - Amazon's operational efficiency is declining, with longer response times for seller inquiries and appeals, exacerbated by staff reductions in the China team [5] - Sellers are facing increased competition from platforms like Temu and AliExpress, which are gaining market share through aggressive pricing and lower commission rates [5][6] Future Outlook: Market and Talent Dynamics - Sellers are increasingly diversifying their platforms to mitigate risks, with many planning to reduce their reliance on Amazon from 80% to 40% by 2026 [7] - The focus on compliance is becoming a non-negotiable aspect of business strategy, with sellers actively seeking to optimize their tax burdens through better invoice management and leveraging tax policies [7][8] Emerging Market Opportunities - New markets in the Middle East and Southeast Asia are being prioritized due to lower tax burdens and less competition, with 78% of sellers planning to expand into these regions by 2026 [8] - Sellers are adapting their strategies to include low-cost products on platforms like Temu while maintaining higher-priced items on Amazon to balance revenue and profit [9] Operational Adjustments and Recruitment Trends - The demand for multi-platform operational skills is rising, with a 47% increase in job openings for multi-platform operators, while single-platform roles are declining [9][10] - Sellers are focusing on developing skills in tax compliance and operational efficiency, with a shift towards technology-driven solutions to optimize advertising and inventory management [10] Strategies for Different Seller Sizes - Small and medium sellers are advised to focus on low-barrier platforms for quick returns, while larger sellers can leverage their supply chain strengths to enter higher-margin markets [11][12] - Successful strategies include targeting niche markets with specific product offerings and optimizing logistics to enhance customer satisfaction and repeat purchases [13]
利润腰斩,亚马逊卖家:难