Many big sellers are selling at low prices! Zebao is demanding 1 billion from the founder!

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It is learned that according to data from marketplacepulse, among the sellers newly joining Amazon's US market in 2022, US sellers ranked first, while Chinese sellers ranked second. It can be seen that due to the impact of the account blocking wave, soaring costs, and the sluggish European and American markets caused by factors such as inflation, the trend of Chinese sellers' decreasing share in the US seems difficult to reverse.

Although Prime Day is about to start, many sellers are not optimistic about the promotion. According to a survey by Numerator, the continued inflation has caused a serious blow to the financial situation of American families, and many American consumers said they will cut spending in the coming months. It seems that the final outcome of the Prime Day promotion is still unclear.

However, under this circumstance, many top sellers have already taken the lead and started the low-price internal competition mode outside the site.

Last week, Amazon announced that Prime Day 2022 will be officially scheduled for July 12th to 13th , and the official website is also in full swing in preheating.

However, although the horn of the big promotion has been sounded, the enthusiasm of sellers is not high, and some even shouted that the annual King of Rolls Charity Competition will be opened again:

"I don't dare to expect anything, it's nothing more than doing some charity to make the data look less embarrassing."

"The big guys at the top are celebrating, the second guys in the middle are looking forward to it, and we at the bottom are lying down and watching."

"The categories I'm working on have already started to drop in price since early June, some are directly $20 off, some are 60% off, and everyone is hoping for big sales on Member Day."

Some sellers said frankly that a few years ago on Amazon, sellers would raise prices desperately during festivals to avoid running out of stock, but now they are madly lowering prices for fear of not being able to clear out all the stock. Many sellers feel that they cannot compete with the big sellers and cannot compete with their peers.

Looking at the top-selling products, maintaining sales volume through low-price promotions and thus grasping market share is also becoming a mainstream trend.

On Slickdeals, the largest promotion website in the United States, many well-known sellers have launched promotions. Anker's portable generator, which originally cost $359.99, is now only $200, a 44% discount, or about $160.

In addition, products from home furnishing giant Zhiou are also among the items. The three-layer shoe rack, which originally cost $27.99, is now sold for $18.19, a discount of nearly 35%.

Not only that, many small and medium-sized sellers from platforms such as Amazon, eBay, and Walmart have also joined the promotion, and products with discounts exceeding 50% are everywhere.

It can be seen that with the approach of Prime Day, many top-selling products have been gathering momentum and are attracting traffic through low-price "internal volume" in off-site promotion channels.

Some sellers reported that their peers in many categories have already cut prices early, and profits have been squeezed again and again. However, what is more fatal is that even with the current price war, sales have not seen much improvement. Therefore, sellers are mostly negative about this year's peak season promotion: clearing out inventory is considered a success.

While many big sellers are preparing for Member Day, another big seller in Shenzhen has recently filed a lawsuit, demanding a whopping 1 billion yuan in debt from its founder.

It is learned that Xinghui Co., Ltd. recently issued an announcement on the progress of the lawsuit. In April this year, Xinghui Co., Ltd. and its subsidiary Zebao Technology sued founders Sun Caijin and Zhu Jiajia, with the amount involved reaching 1.043 billion yuan.

  ▲ The picture comes from the announcement of Xinghui Shares

It is understood that in 2018, Xinghui Co., Ltd. acquired Zebao Technology and negotiated with all the defendants and 27 other transaction parties to determine that the acquisition price of Zebao Technology was 1.53 billion yuan, and at the same time signed the "Profit Forecast Compensation Agreement".

However, during the performance commitment period, the defendant manipulated Zebao Technology to violate Amazon platform regulations in order to achieve the performance commitment, resulting in being involved in the Amazon account blocking incident, causing huge losses. At the same time, the assumption in the "Evaluation Report" that Zebao "continues to maintain the original business management model and continue to operate" is no longer valid, so Xinghui Co., Ltd. sued all defendants to jointly return the transaction price of 1.043 billion yuan.

According to the 2021 annual financial report released by Xinghui Co., Ltd., in 2021, Amazon closed 367 sites of Zebao and frozen funds of about 32.2301 million yuan. Although Zebao actively appealed and adjusted its business strategy, it was still unable to get rid of the negative impact in the short term, resulting in a decline in both revenue and profit in the second half of 2021, with a loss of up to 1.524 billion yuan.

Due to the founder's misjudgment of business strategy, Zebao was caught up in the account blocking storm and has not yet completely emerged from this shadow.

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