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🧠 Big Story:
Amazon Sellers Face US-Made Pressure 🌡️

📊 Key Data:
Shein & Temu Fashion Race 🏁

📖 Ecommerce ecosystem news:

🇨🇦 Walmart Canada boosts retail media with Walmart Connect.
🇪🇺 Google expands AI Overviews to more European countries.
🇺🇸 Amazon upgrades Connect with AI across all channels.
🇲🇽 Mendel raises $35M to expand AI spend tools in Latin America.
🇺🇸 Ecommerce boom fuels U.S. warehouse demand, says Prologis.
🇺🇸 UPS rolls out Global Checkout to end surprise import fees.

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Amazon sellers are getting squeezed harder than toothpaste at a WeWork sink. From shrinking margins to sourcing shakeups, The State of the Amazon Seller 2025 by Jungle Scout reveals interesting dynamic between Amazon SME sellers and enterprises.

Amazon: Billboard or Cash Register? 🛒

Amazon is the Times Square billboard for enterprise brands, with 84% using it primarily for extra visibility. Yet, for SMBs, Amazon is the store itself—54% rely on it as their main sales channel. While big brands spread their bets, SMBs double down, tapping into Amazon for international growth (22%) and new market entry. Omnichannel might be king, but Amazon still wears the crown.

Amazon's Profit Squeeze: SMBs Feel Pinch 📉

Amazon might be where dreams happen, but for small businesses, profit margins are tighter than Harry Styles' jeans. Just 31% of SMBs clear the magic 20% margin mark, compared to 47% of big brands. High per-unit costs, steep fulfillment fees, and ballooning ad expenses make scale tricky, even as 60% saw growth in '24. Giants leverage scale; SMBs hustle harder.

China Out, America In 🇺🇸

America just stole China’s lunch in Amazon sourcing—jumping 97% YoY to become the top supplier in 2025. China dropped 30%, as rising shipping costs pushed brands homeward. Germany, India, and even Mexico gained traction, hinting at a broader retreat from China-centric strategies. Supply chains aren't just shifting; they're getting a full-on passport makeover.

Amazon Sellers Level-Up Listings 🔥

In 2025, Amazon sellers are going back to basics—48% will optimize product listings to boost growth. Listings, the storefront windows of e-commerce, beat out increased ad spend (40%) and new creative launches (38%). Yet, diversification is still on the radar; 38% plan to enter new marketplaces like Walmart (37%) and Shopify (23%), as Amazon costs soar.

Amazon Sellers Go Omnichannel 🚀

In 2025, 65% of Amazon sellers are diversifying their hustle beyond Bezos' backyard, mostly to Walmart (38%), Shopify (25%), and eBay (22%). Social commerce is heating up, too—28% eye platforms like TikTok Shop and Instagram. Another 10% plan to jump into Temu or SHEIN, proving that sellers are following shoppers wherever they scroll, swipe, or spend.

Shein and Temu are not competing in the same fashion lane.

Shein = fashion first.
Temu = fashion… eventually?

Shein is now the 4th largest apparel and footwear brand in the US according to Euromonitor.
→ Over 80% of its ecommerce sales come from these two categories alone.

Even with its 3P marketplace, Shein still owns its inventory:
→ 74% of total SKUs come from 3P sellers
→ Only 36% of its fashion SKUs are 3P.
Shein sells what it knows best — its own clothes and shoes.

Outside of Fashion, SKUs are predominantly 3P based

Meanwhile...

Temu is playing a different game.

Only 15-20% of its best sellers are in fashion.
Most are low-ticket comfort items (think: slippers, loungewear).
Fashion makes up just 30% of sales by value.
→ And electronics (yes, electronics!) are Temu’s top category.

Same market. Different strategy.

One goes deep.
One goes broad.

Fashion isn’t just a category.
It’s an identity.

And for Shein, it still defines their core.

🇨🇦 Walmart Canada boosts retail media with Walmart Connect. Walmart Canada launched Walmart Connect in March 2025, letting marketplace sellers run sponsored product ads on Walmart.ca and the mobile app. The platform uses cost-per-click pricing with a 50% ad spend rebate valid until April 6. 👉 Media in Canada

🇪🇺 Google expands AI Overviews to more European countries. Google rolled out AI-generated search summaries to 9 new EU countries, including Germany, Italy, and Poland. The feature supports 6 more languages and is available to signed-in users aged 18+. 👉 Google Blog

🇺🇸 Google Merchant Center updates click tracking rules. From April 21, 2025, Google Merchant Center will align click reporting with Google Ads. The update changes how clicks are tracked but won’t affect how ads perform or are billed. 👉 Search Engine Land

🇺🇸 Best Buy teams with Meta to launch new ad tool Social+. Best Buy launched Social+ in March 2025, letting brands use its first-party data to target Facebook and Instagram ads. It runs on Meta’s Advantage+ AI and connects ads to sales data across Best Buy’s app, site, and stores. 👉 Marketing Brew

🇺🇸 Instacart expands retail media with Hy-Vee and smart carts. Instacart partnered with Hy-Vee in March 2025 to power RedMedia with Carrot Ads, offering ad access to 7,000+ brands. Its Caper Carts now show real-time, location-based ads in Hy-Vee’s 570+ stores. 👉 Grocery Dive

🇬🇧 Meta settles UK ad-tracking lawsuit with privacy activist. Meta agreed not to track Tanya O’Carroll’s data for ads, ending a UK legal battle over data rights. Meta is also considering a paid, ad-free option for UK users. 👉 TechCrunch

🇺🇸 Google tests marketplace-style shopping in search. Google rolled out "Refine Products" , turning product search into a shoppable grid with 3D views, deals, and fast delivery. The new format positions Google to rival online marketplaces. 👉 Ecommerce News

🇺🇸 Amazon upgrades Connect with AI across all channels. Amazon launched the next-gen version of Connect on March 18, 2025, at Enterprise Connect. The platform now uses first-party AI for voice, chat, and more, with pricing based on channel use, not AI consumption. 👉 Amazon

🇲🇽 Mendel raises $35M to expand AI spend tools in Latin America. On March 27, 2025, Mendel secured $35M in Series B funding led by Base10 with PayPal Ventures. The funds will scale AI-based expense and travel tools in Mexico and expand into Chile, Colombia, Peru, and Brazil. 👉 BusinessWire

🇺🇸 Monetate launches Orchid AI for personalized commerce. On March 24, 2025, Monetate revealed Orchid AI at Shoptalk Las Vegas, combining search, testing, and personalization tools. The platform supports $230B+ in revenue and targets brands seeking AI-driven customer experiences. 👉 BusinessWire

🇺🇸 Big Sur AI unveils e-commerce suite at Shoptalk 2025. Big Sur AI launched a new AI product suite on March 24, 2025, focused on interactive shopping and reducing ad spend. CEO Vinod Ramachandran said the tools aim to increase sales by 15% for SMBs. 👉 PR Newswire

🇨🇦 Noibu launches AI site health tool for Salesforce Cloud. On March 24, 2025, Noibu integrated its AI tools into Salesforce Commerce Cloud to fix site issues fast. The platform helps merchants avoid lost sales from bugs and checkout failures, estimated at $18B yearly. 👉 BusinessWire

🇺🇸 Ecommerce boom fuels U.S. warehouse demand, says Prologis. Online shopping needs 3x more logistics space than physical retail. In 2024, ecommerce drove 56% of U.S. retail growth, and space demand could rise by 350M sq. ft. by 2030 as consumers expect faster delivery. 👉 DigitalCommerce360

🇺🇸 UPS rolls out Global Checkout to end surprise import fees. UPS launched Global Checkout in 43 countries, offering full cost transparency upfront. It shows duties and taxes at checkout, helping customers avoid unexpected charges on international orders. 👉 The Loadstar

🇺🇸 Ordoro and Mirakl partner to simplify marketplace selling. Ordoro integrated with Mirakl to help merchants sync orders, manage inventory, and automate shipping. The tools offer real-time updates and discounted shipping to boost efficiency. 👉 PRWeb

🇺🇸 ShipperHQ and DHL launch new cross-border tax calculator. ShipperHQ released a Duties & Taxes tool powered by DHL eCommerce to calculate fees at checkout in over 200 countries. It updates live to reflect global tariff changes and reduce cart abandonment. 👉 PRWeb

🇺🇸 FedEx and Blue Yonder target faster, easier returns. FedEx teamed with Blue Yonder to launch FedEx Easy Returns in 3,000 U.S. locations. The service uses AI and real-time data to cut costs and improve return speed, especially in high-return sectors. 👉 Retail Merchandiser

🇺🇸 Radial unveils Fast Track to boost B2B and B2C fulfillment. On March 25, 2025, Radial launched Fast Track, a no-investment omnichannel tool. CEO Tom Schmitt said it helps brands scale fast; nearly 50% of retailers report issues managing fulfillment growth. 👉 PYMNTS

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