Those who got rich from Amazon can now not escape the fate of bankruptcy💔.

No one can always be the lucky person favored by the times🍀On the Amazon platform, big sellers are still laying off employees and going bankrupt🎭.

According to Zhaodanmao, Care/of, the top seller in Amazon's fitness category, which was once very popular in the US consumer market, and Stages Cycling, the Amazon power meter and indoor fitness bike brand, have officially announced the cessation of operations and fired all employees.

Amazon's best-selling Care/of announced that it would stop operating

Care/of, founded in New York in 2016, was once a popular nutritional supplement brand on Amazon. Through an innovative 5-minute health questionnaire, Care/of tailors personalized vitamin and supplement packages for users to meet the needs of a healthy diet🍎💊.

They provide vitamin tablets, ready-to-drink powders, plant protein powder and other products, with 30-day supply for free combination. This personalized sales concept has made Care/of rise rapidly and attracted a lot of funds💰

Within two years, Care/of raised $46 million in funding, was valued at $225 million in 2020, and had a 70% stake acquired by global pharmaceutical giant Bayer.

However, after only 8 years, Care/of was forced to stop operating. The fiercely competitive market made their personalized questionnaire model unattractive. In addition, the parent company Bayer was also facing financial pressure and litigation crisis and was forced to stop investing in Care/of💔.

Amid market turmoil, Care/of chose to cease operations and lay off all employees before Prime Day this year. The once glorious company ultimately failed to survive the crisis of funding shortage. 🤯

What does this mean for cross-border e-commerce sellers? It is not easy to maintain profitability, and you need to constantly innovate and improve yourself. I hope everyone can learn from Care/of's story and gain a firm foothold in the fierce market! 💪🌟

Recently, Stages Cycling (hereinafter referred to as "Stages"), a well-known seller on the Amazon platform and a brand of power meters and indoor fitness bikes, announced the cessation of operations and the dismissal of all employees, causing a stir in the industry.

Founded in 2009, Stages was once very popular on the Amazon platform. It launched a number of bicycle power meters and indoor fitness bikes, becoming a well-known brand in the field of professional bicycle equipment 🚴‍♀️.

However, 15 years later, the doors of Stages' manufacturing and R&D headquarters are closed, all products in Amazon's brand store are displayed as "Currently una vailable", and its DTC independent station also has the words "OUT OF STOCK", and it has stopped placing orders with suppliers and stopped shipping to customers.

In addition, Stages has been in a year-long dispute with Taiwanese bicycle giant Giant Bicycles. In January 2023, Giant planned to acquire Stages for more than $20 million, but the acquisition failed and the two parties officially went to court. Stages owed Giant a large amount of money and unpaid invoices, and was eventually taken to court by Giant, demanding payment of approximately NT$454 million in unpaid payments.

With the global E-bike market booming, it is a pity that Stages is out of the game. The long-term overdue payment put Stages in a difficult situation and eventually had to stop operating.

Final Words

Although 2024 is full of challenges for cross-border sellers, bad news also brings new opportunities! 💡

Recently, there have been many bad news about overseas sellers. This is a great opportunity for powerful domestic sellers to build brand awareness. If you can seize the opportunity during the weak period of major giants and quickly develop your own brand, the future is promising! 🚀