50,000 CHINESE SELLERS' ACCOUNTS CLOSED.
In May, Amazon at last acted to deal with the fake and paid for reviews that have been the normal behavior for huge numbers of Chinese sellers. The reasons given in a public announcement by Amazon include "improper use of review functions", "soliciting fake reviews," and "manipulating reviews by giving gift cards."
Some of those who have been expelled had multi million $ businesses on Amazon. Some had turnovers of $1 billion or more....
According to the Chinese newspaper Global Times, since May, Chinese cross-border e-commerce companies had suffered losses of more than 100 billion yuan (US$15.4 billion). That could be a major underestimate. One company that is known as one of the top three Chinese sellers on Amazon with more than 600 Best-Seller products and was making 300 Million yuan profit a year has had to suspend research and development staff.
Many are complaining that the freezing of their funds as well as the loss of ongoing profits will mean they cannot pay suppliers and a substantial amount of manufacturing will be affected.
Like so many honest Western vendors who have suddenly had their accounts closed and their money frozen, these Chinese sellers have had the shock of their lives. Ignorance of CENTS can be very costly.
This shock will almost certainly result in an increase in Chinese companies spending big on advertising to drive traffic to their existing eCommerce sites and the many new sites that we can expect to see popping up like mushrooms.
Walter
In May, Amazon at last acted to deal with the fake and paid for reviews that have been the normal behavior for huge numbers of Chinese sellers. The reasons given in a public announcement by Amazon include "improper use of review functions", "soliciting fake reviews," and "manipulating reviews by giving gift cards."
Some of those who have been expelled had multi million $ businesses on Amazon. Some had turnovers of $1 billion or more....
According to the Chinese newspaper Global Times, since May, Chinese cross-border e-commerce companies had suffered losses of more than 100 billion yuan (US$15.4 billion). That could be a major underestimate. One company that is known as one of the top three Chinese sellers on Amazon with more than 600 Best-Seller products and was making 300 Million yuan profit a year has had to suspend research and development staff.
Many are complaining that the freezing of their funds as well as the loss of ongoing profits will mean they cannot pay suppliers and a substantial amount of manufacturing will be affected.
Like so many honest Western vendors who have suddenly had their accounts closed and their money frozen, these Chinese sellers have had the shock of their lives. Ignorance of CENTS can be very costly.
This shock will almost certainly result in an increase in Chinese companies spending big on advertising to drive traffic to their existing eCommerce sites and the many new sites that we can expect to see popping up like mushrooms.
Walter
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