Quick answer
Chinese consumer tech brands entering the U.S. market tend to over-invest in Amazon and their own direct-to-consumer (DTC) websites. China-based sellers already account for roughly half of all third-party listings on Amazon’s U.S. marketplace, according to Marketplace Pulse, and brands including Shein and Anker have built much of their overseas growth around Amazon and DTC.
American consumers do not shop that way.
Our February 2025 survey of 1,001 U.S. consumers shows that successful retail strategies require a diversified channel mix spanning Amazon, big-box retailers, tech-focused retailers, manufacturer stores, and DTC. Brands that understand these shopping habits gain a structural advantage that is difficult for Amazon-first competitors to replicate.
Key findings
Our research uncovered five findings that explain why American retail habits create an advantage many foreign consumer tech brands overlook.
| Finding | Evidence |
|---|---|
| Amazon is essential but no longer differentiates brands | 66.6% buy through general e-commerce sites like Amazon, Walmart.com or Costco.com |
| DTC reaches fewer shoppers than many brands assume | Only 29.9% typically buy from manufacturer websites |
| Retail diversification creates competitive advantage | Nearly half of consumers also buy from Best Buy and big-box retailers |
| DTC trust remains the largest barrier | Shipping costs, return policies, reviews and authenticity concerns dominate |
| Different demographics require different channel strategies | Shopping behavior varies significantly by age and ethnicity |
The pattern: Chinese entrants concentrate. American shoppers diversify.
The survey highlights a structural difference between how many foreign brands approach the U.S. market and how American consumers actually navigate it.
U.S. retail channel preferences
- 66.6% buy from general e-commerce sites such as Amazon, Walmart.com and Costco.com
- 48.8% buy from big-box retailers
- 48.7% buy from technology retailers such as Best Buy
- 35.5% buy from manufacturer retail stores
- 29.9% buy directly from manufacturer websites.
These categories overlap because consumers shop across multiple channels. The takeaway is not that Amazon wins. It is that Amazon alone leaves meaningful portions of the market uncovered.
CMO Takeaway
A retail footprint limited to Amazon plus DTC concedes roughly half the market to any competitor with a Best Buy or Walmart shelf presence.
Why the Amazon-plus-DTC strategy breaks down
An Amazon-plus-DTC strategy leaves brands overly dependent on a sales channel that many American consumers still approach with hesitation.
When asked why they avoid buying tech from DTC websites, U.S. consumers cited:
| Why consumers avoid DTC | Share |
|---|---|
| High shipping costs | 62.1% |
| Unclear return policies | 55.4% |
| Lack of reviews | 53.7% |
| Authenticity concerns | 52.6% |
More ad spend will not fix these. They are structural gaps in the DTC experience itself. A brand that leans on its own site as a primary U.S. channel is asking shoppers to accept exactly the risks they say they are least willing to tolerate.
The abandonment data confirms the cost of this: 38.8% of U.S. consumers have abandoned an online tech purchase entirely because of a poor shopping experience. Among those under 40, the group most brands assume is DTC-native, the abandonment rate is actually the highest, at 46.1%.
CMO Takeaway
If a Chinese competitor is routing U.S. demand through its own site, the fastest counter is not a better DTC page. It is being the trusted, reviewed, easy-return alternative sitting one click away on Amazon, Walmart.com, or in a Best Buy aisle.
Poor shopping experiences cost brands customers
Trust is only part of the equation. Even when consumers are interested in a product, friction during the buying process is enough to stop many purchases altogether.
Purchase abandonment
- 38.8% of U.S. consumers have abandoned an online consumer technology purchase because of a poor shopping experience.
- Among consumers under 40, that figure climbs to 46.1%.
Poor shopping experiences rarely come down to a single issue. High shipping costs, unclear return policies, limited reviews, slow delivery, and confusing checkout experiences all create friction that can derail a purchase before it is completed. For younger consumers, who are often assumed to be the most comfortable shopping online, the data suggests the opposite: they are also the least tolerant of unnecessary friction.
CMO Takeaway
Winning online is not just about driving more traffic. Reducing checkout friction, strengthening trust signals, and creating a predictable purchase experience can recover demand that would otherwise be lost before a transaction is ever completed.
Amazon is the baseline, not the competitive advantage
Amazon’s role in the American buying journey goes beyond transactions. It functions as the research layer that precedes almost every purchase decision.
Amazon trust signals
- 59.3% of consumers check buyer ratings or reviews on general online retail platforms like Amazon before buying a $100 tech product.
- 59.8% of consumers feel equally confident in a product’s quality whether it is listed on Amazon or on the manufacturer’s own site.
- 42.6% of consumers say they are less likely to buy from a manufacturer’s site if its delivery is slower than Amazon’s.
These findings help explain why Amazon is not where U.S. brands gain ground on Chinese competitors. It is where the competition is already fiercest. China-based sellers hold roughly half of Amazon’s U.S. third-party marketplace and have spent years optimizing for the signals American shoppers value most: reviews, ratings volume, and delivery speed. Matching Amazon’s baseline trust and fulfillment expectations is now a cost of entry, not a source of competitive advantage.
A brand that is weak on Amazon will struggle everywhere, but being strong on Amazon alone does not separate it from a Chinese competitor that is often stronger there.
CMO Takeaway
Treat Amazon as the floor every channel must clear, and treat big-box, tech-focused, and manufacturer retail as the ceiling Chinese entrants rarely reach.
Physical retail remains a competitive advantage
E-commerce dominates in aggregate, but the research shows that physical retail continues to play an important role for specific segments of the U.S. market.
Physical retail still matters
- 38.9% of consumers overall prefer shopping in-store rather than online.
- Consumers aged 60+ favor brick-and-mortar shopping at significantly higher rates than younger shoppers.
- Older consumers are more likely to rely on hands-on evaluation before purchasing consumer technology.
- Consumers aged 60+ are also the most sensitive to slow delivery, high shipping costs, and unclear return policies when shopping online.
These findings suggest that physical retail is far more than a legacy channel. For many consumers, particularly older shoppers, it remains an important part of the buying journey. A digital-only brand cannot offer the ability to see a product in person, ask questions of store staff, or leave with a purchase immediately. A brand with even a limited presence in big-box or specialty retail is better positioned to meet the needs of this segment.Then interpretation.
CMO Takeaway
Retail shelf space is not a cost center to trim in favor of digital spend. For older, higher-basket-value consumers, it is often the channel most likely to convert.
Retail preference in the U.S. is not uniform across groups, and a one-size-fits-all channel strategy underperforms against a segmented one.
Hispanic consumers
- 71.4% buy from general e-commerce sites.
- They are the most likely to abandon an online consumer technology purchase (49.2%).
- 70.7% trust Amazon listings as much as manufacturer websites, making them the demographic most confident in Amazon’s quality signal.
Asian consumers
- 77.8% check ratings and reviews before purchasing, making them the most review-driven demographic.
- They are the most likely to cite limited reviews (63.9%) as a reason to avoid buying from a manufacturer’s website.
- They are also the most likely to cite unclear return policies (62.5%) and payment security concerns (61.1%).
Consumers under 40
- 68.8% buy from general e-commerce sites, making them the most Amazon-reliant age group.
- 67.7% trust Amazon listings as much as manufacturer websites.
- 46.1% have abandoned an online consumer technology purchase because of a poor shopping experience, the highest rate of any age group.
These findings reinforce that American consumers do not evaluate retail channels the same way. Hispanic consumers place greater emphasis on convenience and Amazon, Asian consumers demand stronger trust signals before purchasing, and younger consumers expect an online shopping experience with as little friction as possible. A single retail strategy cannot effectively serve all three.Each becomes independently citable.
CMO Takeaway
Retail shelf space is not a cost center to trim in favor of digital spend. For older, higher-basket-value consumers, it is often the channel most likely to convert.
Three retail channel gaps Chinese entrants consistently leave open
Our research points to three consistent retail channel gaps that many Chinese consumer technology brands leave open as they expand into the U.S. market. None of them require outspending a competitor. They require aligning channel strategy with how Americans actually shop.
1. The big-box and tech retail gap
Hold your ground on Amazon, since it is now a baseline expectation, but do not stop there. Secure a presence across big-box and tech-focused retail as well. Roughly half of U.S. consumer technology buyers shop in channels that a pure Amazon-plus-DTC strategy never reaches, and those channels are where many Chinese entrants remain structurally weakest.
2. The DTC trust gap
Free or discounted shipping, clear return policies, and visible, verified customer reviews directly address the top reasons Americans avoid buying from manufacturer websites. Reducing friction and strengthening trust can make DTC a stronger supporting channel, rather than one that limits growth.
3. The demographic gap
Older consumers are more likely to convert in-store and value hands-on product evaluation. Younger consumers and Hispanic consumers over-index on Amazon, while Asian consumers place the greatest emphasis on reviews, return policies, and payment security. A single retail strategy cannot effectively serve all three.
CMO Takeaway
The brands that win in the U.S. market will not necessarily be those that spend the most. They will be the ones that build a retail strategy around how Americans actually shop, using the right channels and trust signals for the audiences they want to reach.
Three competitive advantages U.S. brands can build
1. Expand beyond Amazon
Hold your ground on Amazon, but secure big-box, specialty retail and manufacturer retail.
2. Remove DTC friction
Free shipping.
Clear returns.
Verified reviews.
Authenticity proof.
3. Match channels to customer segments
Older shoppers convert differently than younger shoppers.
Different demographics require different trust signals.
Bottom line
Chinese consumer technology brands have become exceptionally good at competing inside Amazon and through direct-to-consumer websites. Our research suggests that this focus leaves meaningful opportunities elsewhere. American consumers shop across a far broader retail ecosystem than many brands assume, and their expectations differ by channel, age and demographic. Companies that diversify their retail presence while reducing DTC friction build an advantage that is considerably harder for Amazon-first competitors to copy.
Methodology
Primary research
This report is based on an online survey fielded January 29 to February 3, 2025, among 1,001 U.S. consumers aged 18-70 who had purchased a consumer technology product within the previous six months.
Respondents were sourced through a research panel provider and weighted to match U.S. Census benchmarks for:
- Age
- Gender
- Household income
- Ethnicity
- Race
The overall sample carries a margin of error of ±3.34 percentage points at a 97% confidence level. Analyses of demographic subgroups carry a higher margin of error because of smaller sample sizes.
Research source
Proper Propaganda & Audience Audit Inc. (2025). How and Where U.S. Consumers Buy Tech: Key insights from our February 2025 study on retail channel preferences and shopping behavior.
Additional sources
The discussion of Chinese consumer technology brand expansion and retail strategy draws on the following industry sources:
- Modern Retail. Marketplace Briefing: Amazon’s pitch to DTC brands is evolving… (February 2025), citing Marketplace Pulse data.
- EPAM Systems. A New Paradigm of Chinese Direct-to-Consumer (DTC) Brands. (2023).
Data cited in this article
- Original survey of 1,001 U.S. consumers
- Fielded January 29 – February 3, 2025
- Conducted by Proper Propaganda in partnership with Audience Audit Inc.
- Weighted to U.S. Census demographics
- 97% confidence level
- ±3.34% margin of error