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The 42% pandemic spike was fake growth

Taylor Swift just got engaged and the internet basically imploded. đź’Ť 

Instagram buckled under the ring reveal, headlines went feral, and Swifties treated it like a global holiday.

If that’s not proof pop culture runs on ecommerce energy, what is?

BIG IDEA

Remember when lockdowns made online shopping the only game in town? Five years later, ecommerce has finally climbed back to that same high.

According to Marketplace Pulse, online sales now make up 16.3% of U.S. retail—the exact share reached in Q2 2020.

🏗️ The boom that busted

Back in 2020, industry leaders thought the rocket ride was permanent.

  • Overhiring spree. Shopify doubled its headcount. Amazon went on a 427,000-person hiring spree. Both ended up firing tens of thousands once reality set in.
  • Reality check.  As Shopify’s CEO Tobias LĂĽtke admitted that bet didn’t pay off. đź’¸
  • Borrowed growth. Growth surged 42% in 2020, then face-planted to just 6.5% in 2022 when shoppers raced back to malls. 

🔄 Reset button finally paying off

Today’s 16.3% isn’t a sugar rush—it’s sustainable.

Ecommerce is back on its natural trajectory: about 1% share growth a year.

⚖️ Back to (a better) normal

The past five years proved a simple truth: spikes don’t define the future, slopes do. Sustainable e-commerce isn’t flashy, but it’s steady, and that’s what actually builds lasting businesses.

If you can thrive in this so-called “boring” market, you’ll be primed when the next big disruption hits.

TOGETHER WITH WALMART MARKETPLACE

Sleigh the holiday season with Walmart Marketplace

Join Walmart Marketplace today and launch your storefront in time for peak holiday shoppers. And, as a new seller, you’re eligible to save up to $75,000 in New-Seller Savings, Walmart’s incentive program happening now. 

Plus, let Walmart Fulfillment Services (WFS) handle your holiday fulfillment for you, be sure to add your products by September 15.  

Don’t delay—the sooner you join, the sooner you’ll reach millions of loyal Walmart shoppers on Walmart.com.  

Get up to $75,000 in New-Seller Savings*

Join Marketplace

*Conditions apply.

BITES OF THE WEEK

Tariff truce puts Temu back in the game

Financial Times reported that Temu has switched back to direct shipping from China to U.S. shoppers, thanks to Trump’s temporary tariff truce with Beijing.

🔥 Tariffs fall, competition rises

The bargain app is once again running its “fully managed” logistics pipeline, covering customs and shipping for suppliers while pumping more cash into ads.

  • Tariffs paused. Duties on China-based goods dropped from 100%+ to 30% for 90 days. Small-package rates are down to 54%.
  • Exemptions ending soon. Starting August 29, every cheap parcel—no matter the origin—will get taxed.
  • Temu doubles down. Even with tariffs, direct shipping is still cheaper than U.S. warehousing. Temu also beefed up its logistics to dodge delays.

Last year, 1.3B de minimis packages worth $64.6B landed on U.S. soil. Those numbers will likely stay massive, tariffs or not.

🪑 Sellers can't sit this out

Temu’s rebound shows China-based platforms aren’t playing defense, they’re playing the long game. Tariffs may sting, but Temu is proving that price, scale, and speed still outweigh duties.

For Amazon sellers, that means staring down a competitor willing to eat costs just to undercut you. The truce bought sellers time—but it also gave Temu the same advantage. 🔋

Which fulfillment model is right for your business?

Ecommerce sellers buried in boxes and bubble wrap have three giants ready to take the load: Fulfillment by Amazon (FBA), Walmart Fulfillment Services (WFS), and the Shopify Fulfillment Network (SFN).

Practical Ecommerce broke down how these 3 stack up against each other.

⚡ Speed

How fast do your customers expect their orders to land on their doorstep?

  • FBA: 1–2 day Prime delivery is the standard.
  • WFS: Two-day delivery with “Fulfilled by Walmart” badge.
  • SFN: Fast, but usually 2–3 days, not as instant as Prime.

đź’° Cost

How much of your margins are you willing to give up for convenience?

  • FBA: High fees and  sneaky add-ons can eat margins.
  • WFS: Claimed to be 15% less expensive than FBA.
  • SFN: Varies by fulfillment partner, often more flexible than FBA/WFS.

🛞 Control

How much ownership do you want over branding and the customer experience?

  • FBA: Minimal as Amazon owns packaging and the customer relationship.
  • WFS: Moderate as Walmart still brands the experience, but sellers benefit from retail-store returns.
  • SFN: High as sellers keep branding, packaging, and direct customer loyalty.

🎯 Pack it up

FBA buys eyeballs, WFS saves dollars, SFN builds loyalty. At the end of the day, it’s not about which is “best.” It’s about which fits your play: speed, savings, or sovereignty.

Author : SellerBites
Faith began working on SellerBites in 2021, a weekly newsletter that provides sellers with the latest news and updates in FBA. With first-hand experience in managing various seller and vendor accounts, she understands what sellers face on this platform. Her background led to the conception of SellerBites, which main goal is to help people become better, more informed entrepreneurs in the Amazon marketplace.
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