Algorithm Updates on Amazon & Alibaba — and How They Impact Top Sellers

Marketplaces have adjusted their algorithms again — and the changes are already visible in bestseller rankings.

🔍 What’s changed

Amazon

* Increased weight of listing conversion (CTR → Add to Cart → Purchase).
* Stronger focus on behavioral signals: time on page, scrolling depth, returns.
* Reviews with photos and videos now carry more weight than text-only reviews.
* Ad-driven sales pass less “ranking value” to organic results than before.

Alibaba / AliExpress

* The algorithm prioritizes sales velocity over pure volume.
* Repeat purchase rate has become a meaningful ranking factor.
* Video content and UGC are now critical to reach the top.
* New listings get a short-term boost, but without conversion they drop quickly.

📉 Who is losing positions

* Products with many reviews but outdated visuals.
* Listings inflated by ads without real demand.
* Sellers ignoring video and lifestyle content.

### 📈 Who is climbing to the top

* Niche products with a clear USP.
* Listings with strong hero images and video.
* Products with high conversion rates, even with fewer reviews.

⚠️ Key takeaway

Top sales are no longer about “who’s been on the platform the longest,” but about who sells faster and more consistently right now.

Algorithms are moving away from raw volume and toward listing quality and real buyer behavior.

Mercado Libre: What Actually Sells in Latin America — and Why

Latin America is not a “smaller version” of the US or Europe. Demand drivers are different here, and this is clearly reflected in the bestsellers on Mercado Libre.

1️⃣ Market context (brief)

Buyers are highly price-sensitive

A large share of mobile purchases

Strong demand from small businesses and self-employed sellers

Practical value > brand power

2️⃣ Core sales categories (consistent top performers)
🔌 Electronics & accessories

Budget smartphones

Cables, chargers, power banks

Bluetooth headphones
➡️ Fast solutions to everyday problems

🏠 Home & household

Kitchen gadgets

Storage and organizers

Small appliances
➡️ Purchased to improve daily life, not for design

🚗 Auto & motorcycle

Interior accessories

Motorcycle gear and consumables
➡️ Personal transport is a necessity, not a luxury

3️⃣ Growth categories (where demand is expanding)

Beauty & personal care — affordable, easy-to-understand products

Sports & active lifestyle — basic equipment

Business supplies — POS systems, scanners, receipt printers
➡️ Buyers invest in tools that help them earn

4️⃣ What drives top rankings

Clear positioning within the first 2–3 screens of the listing

Visuals that show what the product is and how it works

Short, practical demonstration videos

Transparent pricing and a strong value-for-money perception

5️⃣ What sellers should understand

Mercado Libre is a market of:

mass demand

fast decisions

simple products with high turnover

The winners are not the most unique products, but those with the clearest explanation of value.

Bottom line

If a product:

solves a practical problem

requires minimal explanation

fits a comfortable price range

—it has a strong chance of becoming a bestseller in Latin America.

Whatnot: the dark side of live auctions

The live-commerce marketplace Whatnot is growing rapidly and is already valued at $11.5 billion.

However, alongside its success, criticism is increasing. Media reports point to “gamified” sales mechanics — random drops, countdown timers, and aggressive bidding — that push users toward impulsive spending. Some buyers report serious financial stress.

Experts warn that this format is blurring the line between e-commerce and online gambling, which could soon attract regulatory attention.

Shein avoids a ban in France

French authorities attempted to temporarily block Shein over the sale of prohibited products. However, the court rejected the ban, ruling that the company’s content removal measures were sufficient.
That said, regulators emphasized that oversight of marketplace assortments will be tightened. Pressure on fast-fashion platforms in Europe continues to grow.

Holiday Shopping: Etsy, eBay, and Amazon Remain Core Platforms

Recent analytics show that during the holiday season, more than half of consumers plan to shop online via marketplaces such as Amazon, eBay, and Etsy. Around 15% of younger shoppers now use AI tools to search for and select gifts.

This trend increases the importance of AI-powered discovery, recommendations, and visual search within marketplace listings.

Key takeaway:
— marketplaces continue to dominate seasonal spending
— AI increasingly influences purchase decisions
— competition for Gen Z and Millennials is intensifying

Temu expands globally and opens access for local sellers

Temu continues rapid expansion and is now available in 90+ countries. Its Local Seller Program allows merchants in the US, Europe, Japan, and Australia to sell directly to local consumers.

The goal is faster delivery, localized assortments, and stronger competition with Amazon and AliExpress.
At the same time, Temu still faces concerns around product quality and safety, and EU regulators have previously launched inquiries related to DSA compliance.

Cheap Chinese goods create a “new Silk Road” into Europe

The surge of low-cost goods from China — largely via Temu and Shein — has become a major issue for European markets. Favorable customs thresholds for low-value parcels have fueled massive logistics flows and rapid marketplace growth.

European retailers argue this undercuts local businesses and creates safety and environmental risks. As a result, the EU is considering new fees on small parcels and the gradual removal of de minimis exemptions, with changes expected by 2028.

Digital Services Act reshapes marketplace regulation in the EU

Under the Digital Services Act, online platforms with more than 45 million active EU users must comply with strict rules on transparency, algorithmic accountability, and content moderation.

Both Shein and Temu are classified as Very Large Online Platforms (VLOPs), placing them under the highest level of regulatory scrutiny, including regular reporting and enhanced controls over dangerous goods and fraudulent activity.

📈 Alibaba Shares Rise Despite a Weak Market

While major U.S. stock indices showed weak performance, Alibaba (BABA) shares gained around +1.4%.

What this means 👇
— investors continue to show confidence in Alibaba
— the company looks resilient despite broader market pressure
— focus remains on cloud services and AI initiatives

📌 When the market is red but a stock is green, it’s always a signal worth watching.

Etsy holds its niche in unique products and stays out of the price war

Etsy remains a global marketplace for handmade, custom, and vintage goods. Unlike Amazon and Temu, Etsy largely avoids competing on price.

Shoppers come to Etsy for:
— uniqueness,
— product stories,
— craftsmanship rather than low prices.

Key takeaway for sellers:
Etsy is not about scaling at any cost. It’s about margins, branding, and a loyal audience — making it a strong choice for sellers tired of constant price dumping.

🌍 Key Global E-commerce Trends for 2026

Global e-commerce is entering a new phase: growth continues, but the rules are changing.

Key trends:
— price pressure from Temu and Shein
— Amazon and eBay defending sellers by reducing fees
— AI becoming a baseline, not a competitive edge
— tighter regulations in the EU and US
— shift from GMV growth to margins and sustainability

2026 is about smart scaling, not fast scaling.

Labubu hype fades: Pop Mart shares fall as demand cools

Shares of Pop Mart fell 6.2% after the market learned that demand for Labubu toys has weakened. Sales during the peak holiday season — Christmas and New Year — fell short of expectations, putting immediate pressure on the company’s stock.

Just recently, major media outlets were describing Labubu as a symbol of a new wave of emotional consumption, framing it as the beginning of a long-term trend. But the toy market appears to be following its familiar cycle: interest in Labubu is cooling almost as quickly as it once surged — much like past fads such as fidget spinners and pop-its.

The irony is that a feature film based on Labubu is still in the works. Yet history suggests that media expansions rarely revive mass demand once the hype has already peaked.

The Labubu story now looks like a textbook case of a short-lived craze: a rapid rise, a brief moment at the top — and an equally rapid decline. For investors and brands, it serves as another reminder of how fragile trends built purely on hype can be.

🛒 Amazon vs Temu: Two Models, Two Futures

Amazon and Temu are no longer just competitors — they represent two fundamentally different e-commerce philosophies.

Amazon is built on trust: fast delivery, easy returns, subscriptions, and service. It doesn’t sell the cheapest products; it sells a predictable customer experience.

Temu, on the other hand, bets on price and impulse. Ultra-low costs, aggressive promotions, gamification, and massive assortment create a “deal-hunting” mindset.

For consumers, the distinction is becoming clear. For sellers, it’s more complex. A strategy that works on Amazon may fail completely on Temu.

The takeaway: sellers must adapt products, pricing, and positioning to each platform, not simply copy listings across marketplaces.

🔥 Why Bestsellers Look Simpler Than Competitors

When you closely examine global marketplace bestsellers, a paradox emerges: they rarely look “designer-made.”

Their main weapon isn’t creativity — it’s clarity.
Within seconds, the buyer understands:
— what the product is
— what problem it solves
— why it’s relevant to them

Bestsellers consistently:
— show products in real use
— avoid overloaded descriptions
— sell benefits, not specifications

This reduces friction and speeds up purchase decisions. In crowded markets, clarity beats aesthetics.

🤖 How AI Quietly Became an Operational Standard in E-commerce

AI is no longer seen as innovation in e-commerce — it’s part of daily operations.

Today, AI:
— generates and tests content
— identifies growth opportunities
— forecasts demand
— automates analytics

Companies that ignore AI aren’t losing technology — they’re losing time. They test slower, react later, and rely more on intuition than data.

In 2026, winners will be those who treat AI as a speed multiplier, not a trend.

💰 Where Profit Still Exists in Global E-commerce

Margins haven’t disappeared from global e-commerce — they’ve shifted.

They remain where:
— niches or specialization exist
— products are hard to price-compare
— branding adds real value
— logistics and returns are controlled

Mass-market, undifferentiated products increasingly become margin traps.
GMV growth without profit is no longer a sustainable strategy.

📦 Why Copying Bestsellers Is Failing More Often

Copying bestsellers has long been the most common entry strategy in e-commerce.
In 2026, it’s also one of the riskiest.

It used to work:
find a bestseller → copy it → make profit.
That logic is breaking.

What’s changed:
— algorithms detect clones faster
— competition shifts to price and logistics
— margins on originals are already thin
— copies enter later, with worse conditions

As a result, sellers copy the outcome, not the reason for success.

A bestseller is not just a product.
It’s a combination of:
— timing
— pricing
— demand
— visuals
— logistics
— trust

By the time you enter, most of that advantage is gone.

Key takeaway:
In 2026, winners aren’t those who copy bestsellers, but those who:
— adapt the idea to a new use case
— narrow the niche
— solve a specific problem better than the original

Copying is easy.
Profitable execution is not.

De-influencing: Why Bloggers Are Now Discouraging Purchases

It’s hard not to notice that social media is increasingly resembling giant marketplaces. Influencers actively promote new products, offer discounts, and urge users to make impulse purchases. However, every trend has a flip side. Much like the story with the rise of AI, the culture of hyper-consumption has encountered a powerful counterwave — the trend of de-influencing. On TikTok, it has garnered billions of views, where creators advise not what to buy, but what it's better to avoid.

The movement was initiated by TikToker sadgrlswag, who published a list of overrated items — from Ugg boots and Dyson stylers to hyped books and premium headphones. Other content creators followed her example.

According to trust theory, the persuasiveness of information depends on the credibility of the source, which is determined by expertise and trustworthiness. Classic influencers promoting paid advertising often lose precisely that trustworthiness in the eyes of their audience — their advice begins to be perceived as biased.

De-influencers, on the other hand, build their reputation on the opposite principle. By criticizing purchases, they essentially declare: "I'm on your side, not the brand's side. I want you to spend wisely." This approach strengthens the emotional connection with the audience and boosts trust. Even if the creator later recommends an alternative product, their words will be received with greater attention. In this case, bloggers sacrifice short-term gain for the long-term loyalty of their followers.

Modern individuals suffer from an overload of choices and information — a phenomenon known as "decision fatigue." Under such conditions, people seek simple and honest guides. De-influencing has become a response to this demand: it provides the moral justification to refuse unnecessary spending and supports the idea of conscious consumption.

How sincere are such bloggers? 🧐

🌍 What people are buying in the USA / Europe / Asia right now

USA 🇺🇸 — home office products — car accessories — time-saving gadgets

Europe 🇪🇺 — eco-friendly products — minimalism — multifunctional items

Asia 🌏 — compact products — smart gadgets — items for small apartments

📈 Often a trend moves in a chain: Asia → Europe → USA

eBay expands Circular Fashion Fund and offers grants up to $300,000

eBay is expanding its Circular Fashion Fund, opening applications to companies in Europe, Canada, and Switzerland — in addition to the U.S. and Australia.

The program supports resale, repair, and textile recycling initiatives. In 2026:
— each of the 8 finalists will receive $50,000,
— one winner will secure up to $300,000 in additional funding from eBay Ventures.

Applications are open until March 8, 2026.

Why it matters:
eBay is positioning itself not just as a marketplace, but as an ecosystem player in sustainable fashion. For niche brands and resale startups, this is real access to capital, visibility, and mentorship.

Analytics: Global eCommerce Trends 2026 on Marketplaces

2026 opens new opportunities for global eCommerce:
Key Trends:
Voice commerce: voice purchases are gaining traction on Amazon and Walmart
AI assistants: personalized recommendations increase conversion by 15–20%
Social shopping: sales via social media are growing, especially TikTok Shop and Instagram Shop
Numbers:
Amazon and Walmart showed GMV growth of 12–18% this quarter
Mercado Libre and Temu accelerated sales growth in Latin America to 25%

💡 Takeaway: Sellers should adapt product listings for AI and social media, and pay attention to voice search queries.