The world’s e-commerce companies look to China, and Chinese e-commerce companies look to Shenzhen. On Amazon, 70% of sellers are from China; among China’s cross-border e-commerce, sellers in Guangdong account for 70%, of which 50% come from Shenzhen.
Due to China’s excellent performance in fighting the epidemic, the domestic cross-border e-commerce industry has ushered in a wave of development opportunities. “It’s easy to buy a luxury house in Shenzhen Bay and buy a luxury car in one year.” Words like this frequently appear in the public eye.
Since 2020, cross-border e-commerce has entered the intensive IPO stage. Cross-border Tong, Liao Interactive, Lanting Jishi, and Xinwei International After being listed one after another, in the first half of 2021, many cross-border e-commerce companies announced IPO plans.
However, Amazon’s “account banning crisis” since May this year has been particularly violent, affecting more than 50,000 Chinese merchants. Nearly 340 sites of Shenzhen’s super-big seller Youshu have been blocked and 130 million yuan of funds have been frozen, making it the most severe case known to Amazon of ever cracking down on domestic sellers.
According to Amazon, most of the reasons for account bans are “improper use of the review function”, “requesting false reviews from consumers”, and “manipulation through gift cards” reviewed by the platform. Comments” and other violations.
In response, the Ministry of Commerce stated that it would provide assistance to enterprises to improve their risk control levels, strengthen their integration with international economic and trade rules and standards, and firmly support enterprises in taking reasonable measures to protect their legitimate rights and interests. .
More than 50,000 sellers have been closed, with losses exceeding 100 billion
According to Caixin.com, the scope of centralized management of the platform since early May has continued to expand, with a large number of Amazon sellers having their stores closed and their accounts banned. On July 21, a person close to Amazon said that the account ban incident was not aimed at Chinese sellers and did not involve issues of Sino-US relations. Most of the stores that were banned were merchants who had repeatedly violated regulations and “knowingly”.
Starting from the beginning of May 2021, a large number of brand stores operated by Chinese sellers have been blocked, involving many well-known South China head cross-border stores such as Patosun, Aoji, and Zebao. seller. It is reported that the non-compliance behavior that Amazon has taken heavy measures to deal with this time mainly involves false reviews. This is the so-called “fake order speculation” on domestic e-commerce platforms.
In early May, a large number of brand stores including Mpow, VicTsing, Austor, TopElek, Atmoko, TaoTronics, RAVPower, Apeman, Homfa, etc. were closed, and Pato was involved behind them. Xun, Aoji, Zebao and many other well-known top sellers in South China. Since June, the accounts of well-known brands owned by many leading sellers have been blocked, a large number of products have been removed from the shelves, and even a billion-level seller has had his account banned during Amazon Prime Day. On July 8, Youshu was banned, with nearly 340 sites blocked and 130 million yuan in funds frozen. It became the most severe case of Amazon’s crackdown on domestic sellers known to date.
In addition, this round of “account bans” not only involves dozens of billion-level top sellers, but also touches China Electronics Hengye, Shenzhen Ruitai, Shenzhen Hesi, Guangzhou Taiyang, Mengzituo, Wofeng Outdoor, Hangya E-commerce, Lemailemai Trading, Ayason, Xibei Electronic Technology, Kolas, Hedetiancheng Technology, Rafael, Yishan E-commerce, Guangmian Technology, Ambo Technology, Ovoten Technology, Detuo Electronic Technology and many other waist sellers.
According to Southern Metropolis Daily, according to statistics from the Shenzhen Cross-Border E-Commerce Association (hereinafter referred to as the “Association”), in the past two months, the Amazon platform has been blocked There are more than 50,000 Chinese sellers in the store, which has caused industry losses estimated to exceed 100 billion yuan.
A leading e-commerce company has blocked 340 sites
The listed companies behind this may suffer losses as a result
According to the “Daily Economic News” report, Tianze Information (300209, SZ) recently issued a reply announcement to the Shenzhen Stock Exchange’s letter of concern. Among them, subsidiary Youkeshu was suspected of violating Amazon platform rules, and nearly 340 sites were blocked by the platform.
In response, Tianze Information admitted that it had neglected the compliance of platform store operations, and had set up a special working group to communicate with the platform, organize complaints, and at the same time increase the provision for price decline of corresponding inventory. Proportion, the balance is approximately in the range of 500 million to 600 million yuan. Tianze Information predicts that in the first half of this year, the overall revenue of subsidiary Youkeshu will drop by about 40%-60% year-on-year, and the company is at risk of performance losses.
As one of the leading cross-border e-commerce companies, Youkeshu was established in 2010 and was acquired by Tianze Information from 2017 to 2019. Acquisition completed. Its main model is B2C, relying on third-party e-commerce platforms such as Amazon, eBay, Wish, and AliExpress to sell products made in China to the world.
Since 2019, cross-border e-commerce business has become Tianze Information’s main source of revenue and profit, and has become the target direction of the company’s transformation.
The COVID-19 epidemic swept the world in 2020, catalyzing the rapid increase in online consumption penetration, and the domestic cross-border e-commerce export industry achieved growth against the trend. Affected by this, Tianze Information’s cross-border e-commerce export business achieved operating income of 4.748 billion yuan in 2020, a year-on-year increase of 20.16%, and the revenue accounted for as high as 94.48%. Among them, sales revenue on Amazon is 15.25%It is a new example of the development of overseas e-commerce and provides a reference for the development of e-commerce in various countries. At the same time, the Ministry of Commerce also noted that due to differences in laws, cultures, and business practices among countries, companies will encounter various risks and challenges when going overseas.
Li Xingqian said that it is understood that the behavior of some merchants is considered to violate the Amazon platform’s “Seller Code of Conduct” and other format terms, and their operations are restricted. The Ministry of Commerce has always required companies to abide by the laws and regulations of various countries, respect local customs and habits, and conduct operations in accordance with laws and regulations. The Ministry of Commerce will provide assistance to enterprises to improve their risk control levels and strengthen their integration with international economic and trade rules and standards, firmly support enterprises in taking reasonable measures to protect their legitimate rights and interests, promote various upstream and downstream entities to strengthen exchanges and collaboration, and jointly promote the healthy development of the industry.
Li Xingqian emphasized that, generally speaking, this is a problem that arises in the development process of new foreign trade formats. It is a period of “acclimatization” and “growing pains.” In the process of learning and understanding each other, we hope that the platform will cherish the important contributions made by the vast number of enterprises and fully respect all types of trading entities. I believe that the platform and enterprises can find a solution that is both compliant and reasonable. The Ministry of Commerce will continue to pay attention to relevant developments. </p
