The number of active sellers on Amazon U.S. fell from 584,000 in January 2025 to 500,000 in March 2026. Over the course of four years, the number of active sellers worldwide dropped from 2.4 million to 1.65 million, a decrease of 750,000.

It’s not that people don’t want to do it; it’s just that after crunching the numbers, they realize—After a busy year, I didn't have much money left.The

01 Advertising Costs Are Getting Out of Control

By 2026, the average CPC had reached $1.18 to $1.25, an increase of more than 60% compared to 2020. During major sales events in top-tier categories, bid prices exceeded $6. In some categories, the CPC skyrocketed by 60% in a single year.

Data from Seller Genius shows that the average CPC in 2026 rose by 8% to 12% compared to last year. However, the average figure masks the true situation—the beauty category saw a 67% increase, while the maternity and baby category saw a 42% increase.

CPC used to be a few cents; now it's a few yuan. With the same budget, impressions have dropped by half.

To make matters worse, Amazon announced in April 2026 that advertising fees would be deducted directly from account balances.. An internal survey revealed that sellers of 80% products said this policy would cut their available cash flow by more than 25%. Hundreds of large sellers launched a 24-hour advertising boycott.

02 Profits Are Being Systematically Squeezed

Some sellers’ net profit margins have dropped from 12% in the same period last year to 4% in Q1 of this year. Sellers with profits below 5% are exiting the market in droves.

In the spring of 2026, Amazon rolled out a series of new policies—changes to advertising payment methods, the full implementation of the DD+7 payment cycle, and an increase in fuel surcharges—each of which is squeezing cash flow. In Shenzhen alone, approximately 67,000 Amazon sellers have exited the platform.

03 New products are barely selling.

One seller documented their experience launching a new product: an outdoor camping lantern. They spent $280 on advertising, which generated over 400 clicks but resulted in only 11 actual sales. The average cost per order exceeded $25, while the profit per unit was less than $6.

“In the past, launching a new product was a gamble where you had a one-in-nine chance of success; now, it’s basically a one-in-ninety-nine chance,” summarized one industry observer.

Amazon's underlying logic has changed. It used to be that “a good product brings traffic,” but now it’s “a good product still requires money to buy traffic.” More than 70% of search results are dominated by ad slots and top sellers, leaving small and medium-sized sellers with virtually no organic traffic.

While Amazon sellers are locked in fierce competition in the established market, South Africa's Takealot remains a severely undervalued market.

Takealot is the undisputed leader in South Africa’s e-commerce market, with a market share exceeding 50%. In fiscal year 2025/26, it posted its first full-year profit, with revenue of 1.8 billion rand (approximately $1 billion).

04 But on this platform,(math.) genusThere are fewer than 3,000 Chinese sellers

Compare that to Amazon, where 300,000 domestic sellers are battling it out. The intensity of competition is two orders of magnitude higher.

With the same products and the same operational capabilities, a business might barely break even on Amazon, but on Takealot, it can become a top performer.

Takealot’s gross profit margins for mainstream product categories range from 35% to 55%, with return rates of only 1% to 2.5%. Commission rates range from 4% to 15%, and the monthly rental fee is approximately $18. One Chinese seller’s new store generated nearly 400,000 RMB in sales just 20 days after activation.

05 more importantly(math.) genusAmazon sellers have a natural advantage when it comes to Takealot

To pass Takealot’s onboarding review, you’ll need to provide a link to your cross-border e-commerce store and your sales history. If you’ve sold on Amazon before, you already have the necessary materials. You don’t need to start from scratch learning how to select products, optimize listings, or run ads—you can apply those skills directly here.

The products you’ve verified on Amazon, the supply chain resources you’ve built up, and the operational methods you’ve refined will still work on Takealot. The only difference is that competition is dozens of times less intense, advertising is several times cheaper, and profit margins are several times higher.

06 Key Requirements for Joining Takealot in 2026

Effective July 1, 2026, Takealot will implement a new vendor onboarding policy:

1. Corporate Entity: A business license from mainland China or Hong Kong that has been registered for at least 6 months
2. registered capital: No less than 350,000 RMB
3. Operational experience: Links to cross-border platform stores operated by the same entity (Amazon, AliExpress, eBay, Walmart, etc.)
4. invitation system: Obtain an exclusive invitation link through an official business development manager or an authorized service provider

Entry Process::

• Get an invitation link through authorized channels
• Submit materials such as the business license, the legal representative's ID card, and a link to the store on the platform
• Review period: 3–5 business days
• After approval, sign the agreement to confirm the commission rate and payment schedule.
• List products; the store is now officially open

The platform's growth phase won't last forever. The entry requirements for July 2026 have already been tightened; once more sellers flood in, today’s blue ocean will become tomorrow’s red ocean.

As 600,000 sellers are pulling out of Amazon, the first group to shift their focus to South Africa has already started making money.

If you're interested in expanding into the blue-ocean market of South Africa, feel free to contact our customer service team for more details. 📱 WeChat: qcygscszk 📞 Phone: 18676749275

What can we do for you?

✔️ South African Company Registration: Full-service CIPC registration, with certification issued in 15–20 business days

✔️ VAT Registration + Tax Representative: Locally registered tax professionals in South Africa—guaranteed compliance

✔️ Complete Guide to Opening a Bank Account: FNB/Standard Bank Remote Video Interview, Chinese-Language Guide to FICA Documentation

✔️ Fully Managed Bookkeeping and Tax Filing: Monthly VAT + Annual CIT + CIPC Annual Review—One-Stop Compliance

✔️ Step-by-Step Guidance for Setting Up a Takealot Local Store: Full Process from Qualification Preparation to Category Selection and Brand Registration

Why choose Enterprise Caiying

■ We have helped over 200 Chinese sellers establish a presence in South Africa; the questions in the FAQ section are all based on actual customer inquiries.

■ Local partner law firms and accounting firms in South Africa ensure full compliance throughout the entire registration and tax filing process

■ We offer “fully managed” services covering everything from registration to operations, so sellers only need to focus on product selection and sales

■ Full Chinese-language support throughout the process; we will coordinate all local matters in South Africa, so sellers do not need to communicate in English

■ With over a decade of experience in cross-border tax and financial compliance, I understand the real needs and pain points of cross-border e-commerce sellers.