Amazon shut down a major “made in China, sold on Amazon” supplier as part of this crackdown and other steps have also been taken, www.DingDingTV.com reports
— Under the last presidential administration, America started cracking down on China. The Peterson Institute of International Economics highlights the tariffs war that went on between the two countries from 2018 to 2020, but that was only part of the picture. Amazon, an eCommerce leader, also took action against companies in China.
“Amazon chose to close 340 online stores operated by a major Chinese retailer in the first half of 2021. Although Amazon did not provide details as to why it closed the stores, the retail giant has been coming down on companies for various violations, such as using paid reviews,” John Choate, CEO/Senior Consultant, World Wide Value Solutions & Global Logistics-Data Systems Officer for the United States Air Force, said when taking part in a DingDing TV panel discussion regarding Sino-American trade tensions organized by APAPA, US-China-Link, Ding Ding TV and Blue Silk Consulting.
Some retailers feel Amazon is penalizing them for a successful first quarter. However, the company didn’t single out one particular retailer when making this move. It banned over 600 brands that spanned 3,000 seller accounts, saying they violated review fraud. Now, the company has blocked accounts reaching over 50,000.
“Companies turn to Amazon to expand their international reach. However, Amazon determines which organizations can make use of its platform and suspends sales or freezes funds when a store has numerous customer complaints or sells products with intellectual property risks,” Henry Yin, moderator of the panel and California Commissioner for Economic Development and Founder and President of USA-China-Link, explains.
This retailer isn’t the only company affected by this crackdown, and this is not the first time Amazon has removed a third-party seller from the site, according to South China Morning Post. When the platform suspects a company of engaging in suspicious behavior, such as offering gift cards to customers who write positive reviews, it takes quick action.
“Amazon vows to fight review manipulations, as it has been doing for years, and continues to improve in this area. Human investigators and sophisticated technology identify potential violators proactively to ensure consumers trust the platform. South China Morning Post reports the site banned incentivized reviews five years ago and blocked more than 200 million potentially fake reviews before customers saw them. As Chinese merchants continue to expand their presence on Amazon, they must abide by the rules or lose their eCommerce store,” Rosemary Coates, President of Blue Silk Consulting and an expert in the global supply chain, procurement, logistics, and manufacturing, states.
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Source URL: https://marketersmedia.com/dingding-tv-reports-ecommerce-crackdown-continues/89060773
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Release ID: 89060773
