Amazon Shutters 3,000 Chinese E-Commerce Businesses for Violations

Cindy Tai, Vice President of Amazon, attended a ceremony held by Amazon in Hangzhou on Friday. In an interview with the media, she said that Amazon has banned 600 Chinese brands and about 3,000 merchant accounts, all of which repeatedly used the platform’s review function improperly. The ban follows several prior warnings.

In an interview with China Central Television Business Channel, Cindy Tai said that the crackdown on business accounts was not aimed at China, and that businesses from other countries were also involved.

“The proportion of Chinese merchants on Amazon has not changed much. I hope to better protect the rights and interests of consumers and ensure that merchants enjoy a good business environment in Amazon.” Cindy Tai mentionedthat Chinese merchants are not as affected by the crackdown as some other businesses. “Although the global market has been affected by the Covid-19 pandemic, the business growth of Chinese merchants on Amazon is considerable.”

When asked whether the banned merchants were given the opportunity to appeal, Cindy Tai responded that, according to Amazon’s regulations, the merchants have multiple opportunities to appeal. “We will make such a decision only when we can’t trust a merchant at all.”

At the same time, she also mentioned that the 600 Chinese brands that were banned were involved in violations other than improper usage of reviews, such as forging identities, paying bribes (cooperating with some grey market parties), and selling illegal products.

In 2020, 42% of Amazon’s top merchants are from China, and the proportion of Chinese cross-border e-commerce on Amazon’s US website has reached 63%. However, due to the laws, cultures and business habits of different countries, enterprises will encounter various risks and challenges when entering overseas markets.

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“Chinese merchants are very active and good at using tools to increase sales. However, in terms of brand building tools, there is a big gap between the positivity and usage of Chinese sellers.” Cindy Tai said.

Amazon said that it also has the responsibility and obligation to strengthen the publicity of relevant rules and regulations in the future, and will establish Amazon’s first merchant training center in Hangzhou, so as to help more e-commerce enterprises and enhance their operation capabilities.