Chinese sellers are gaining on Walmart Marketplace at expense of U.S. merchants, research says

Walmart Marketplace is shifting toward Chinese sellers, following in the foosteps of Amazon where China already represents more than half of merchants.

Some 41% of new sellers on Walmart Marketplace were from China in 2024, up from 16% in 2023, according to e-commerce research company Marketplace Pulse.

Now, Chinese sellers represent 28% of merchants on Walmart Marketplace, up from 20% in 2023 and less than 1% at the start of 2021, Marketplace Pulse said.

"The speed of the transformation is particularly concerning for U.S.-based sellers because it suggests the structural advantages Chinese sellers enjoy are becoming more impactful, even as some of these advantages begin to face increased scrutiny," said Ben Donovan of Marketplace Pulse in an article.

One advantage Chinese sellers have is controversial trade loophole known as "de minimis," which allows duty-free shipments on shipments worth less than $800.

The Trump administration temporarily suspended the de minimis loophole before reinstating it because of logistics issues.

Consumer advocates have told ConsumerAffairs that Chinese sellers are using the de minimis loophole to deflate the value of their shipments to avoid taxes and skirt product-safety inspections.

Product-safety warnings surged in 2024 largely because of goods coming from China, ConsumerAffairs previously reported, highlighting concerns about poor standards among products sold online.