+86 15546883080 (China mainland) +852 6554 1700 (Hong Kong)  info@fba.help

50000 Chinese seller accounts have disappeared from Amazon

More than 50000 Chinese seller accounts have been banned on Amazon due to pay-for-praise and other policy violations

In May Amazon shuttered some of its largest sellers from China over violations of platform rules, including using fake reviews and incentives to solicit positive reviews from customers.

The crackdown drove China’s online exporters into a panic, and as it turned out, it wasn’t a one-off ambush from Amazon but a prolonged war, writes Techcrunch.

According to the Shenzhen Cross-border E-Commerce Association, more than 50000 Chinese retail accounts have lost their place on the platform lately, resulting in lost sales of $15.4 billion, reports Bloomberg. Punished accounts are suspended, with their goods withheld and deposits frozen by Amazon.

It indicates that Amazon now wants quality and design over generic products that compete solely on price and manipulation of ranking. For instance, it will begin paying customers up to $1000 for claims of property damage or personal injury under $1,000 caused by defective products, reports Theverge. The new policy begins on September 1st.

The Chinese government has taken note of the incidents. An official from the Ministry of Commerce compared the wave of store closures as Chinese exporters being “fish out of water”.

Nevertheless, many Chinese merchants are expected to carry on at Amazon, writes South China Morning Post. According to Wang Xin, executive chairman of Shenzhen Cross-Border E-Commerce Association, they’re opening hundreds of new accounts on Amazon, even though it will significantly increase its costs in terms of compliance and accreditation.

More Amazon news

Shanghai is still under lockdown. Is Guangzhou next?

Shanghai is still under lockdown. Is Guangzhou next?

A shift in China’s COVID-19 policy remains a distant prospect Shanghai is easing its two-week lockdown, but most of its businesses still are closed. The redirection of goods is becoming more difficult and expensive as cargo facilities in other Chinese cities are now...

read more
Amazon will let sellers build independent online stores

Amazon will let sellers build independent online stores

Bloomberg reports that Amazon is working on a product that that will let retailers run independent stores. The project hasn’t been announced officially yet, but former company executives told Bloomberg, that Amazon has been working on it since late 2017 and could...

read more