Bankruptcy! Running away! Unscrupulous service providers causing sellers to be banned?

Now is the critical moment of preparation before the big promotion, and any preparation link such as shipment, warehousing, and new product cultivation is particularly critical. However, there are also some unstable factors in this process, such as sudden collapse of logistics companies and service providers, which disrupts the preparation rhythm of sellers.

Looking back at the peak seasons of previous years, many sellers missed the big promotions due to logistics congestion and out-of-stock. Therefore, with Prime Day approaching, creating a delivery plan in advance and ensuring sufficient supply is undoubtedly the top priority for sellers. However, in recent times, logistics chaos has been rampant in the industry, causing many sellers to suffer from difficulties such as lost goods and serious delays in delivery.

Recently, a Shenzhen freight forwarding company has been making headlines for raising 4 million yuan from customers through crowdfunding. Although the relevant person in charge said that the company is promoting crowdfunding and dealing with the backlog of goods as soon as possible, there was news that the logistics company was unable to repay the large amount of debts such as compensation and refunds, and was in extreme financial difficulties and had filed for bankruptcy.

  ▲ The picture comes from the seller communication group

Similar freight forwarding default incidents have occurred frequently recently, such as soliciting goods at low prices, faking the illusion of customs inspections, etc. The consequences of these illegal operations of black freight forwarders need to be borne by the sellers, and many sellers' peak season stocking plans have been fatally affected as a result.

In addition to logistics failures, chaos among service providers is also a major pain point for sellers.

A seller reported that the corporate direct-exit accounts he purchased from a registration service provider were actually registered in batches by college students. Multiple stores were registered with one set of information and sold to different sellers.

This also led to the seller's Australian store being banned, and even caused his main North American account to be judged to be linked. Currently all products in the store have been removed from the shelves, resulting in a net loss of more than 10,000 yuan.

  ▲ Picture source: Zhiwubuyan

The service providers are a mixed bag, and there are endless schemes such as running away, financial fraud, and threatening sellers with the closure of their stores. Some service providers also specialize in gray transactions that spoof sellers' stores.

Some sellers reported that their stores were constantly spoofed by service providers, who stole their product images and posted them to other websites to generate URL links, and then complained about the store. After contacting the other party, they were even threatened to pay 3,500 yuan per store per month before they would stop.

Freight forwarders running away, service providers making mischief, all of these incidents indicate that the cross-border service industry urgently needs to be regulated.

At present, there are still many non-compliant phenomena in the cross-border industry. Freight forwarders lose shipments, withhold orders and extort money, tax companies go bankrupt and run away, leaving thousands of sellers unable to declare their tax numbers, training institutions put out false advertisements to defraud high IQ taxes ... Such incidents continue to occur, and have become a major pain point for sellers.

Looking at these cross-border service companies that have gone bankrupt, most of them started out as small workshops. They have neither solid strength nor mature business capabilities, and they often run away with the money due to broken capital chains.

Therefore, in order to effectively avoid such risks, sellers should fully understand the other party's business qualifications during the cooperation negotiation process and choose companies that are strong, compliant, and have guaranteed security.

Amid the turbulent situation in this industry, one service provider has been favored by capital and has continued to accumulate strength. Not only did it raise 300 million yuan this year , it also held the most high-profile press conference in the history of cross-border investment so far.

On June 17, 2022, an offline press conference hosted by Eurotax & Metro was grandly opened. The theme of this press conference was "Defining the Next 10 Years of Cross-Border Compliance" . Former Deputy Minister of the Ministry of Foreign Trade and Economic Cooperation Long Yongtu, Counselor of the State Council He Maochun, Professor of Sun Yat-sen University Yang Xiaoqiang, and EU-China Consumer Product Safety Improvement Project doctoral expert Liu Kaiming and other cross-border bigwigs gathered.

Against the backdrop of the current global political turmoil and severe challenges facing the development of cross-border e-commerce, we will analyze the new international trade landscape and gain insights into the compliance trends of cross-border e-commerce, so as to help Chinese cross-border e-commerce take the next step and expand overseas in a healthy and compliant manner.

Long Yongtu, former Vice Minister of the Ministry of Foreign Trade and chief negotiator for China's accession to the WTO, made a live connection and delivered a speech. In the post-WTO era, the international trade pattern is facing profound adjustments and the trend of economic globalization is slowing down. Against this background, China actively participates in the shaping of the international trade pattern, reconstructs China's economic pattern of opening up to the outside world, and "goes global" with high-quality enterprises, products and services to create the brand characteristics of "Made in China", and promote the high-quality development of China's cross-border e-commerce industry in the future.

He Maochun, Counselor of the State Council, Professor of Tsinghua University, and Standing Committee Member of the Central Committee of the China Democratic League, introduced the Guangdong-Hong Kong-Macao Greater Bay Area's leading role in the development of global digital trade. He said that Guangdong, Hong Kong and Macao should seek opportunities for complementarity and win-win results, clear the bottlenecks for the free flow of production factors in the Bay Area, support and guide Hong Kong and Macao enterprises and institutions to provide international service support, and support and cultivate Guangdong's leading cross-border e-commerce to develop in Hong Kong and Macao.

Support powerful cross-border e-commerce enterprises or platforms in the Bay Area to take the initiative to explore overseas markets, especially to explore markets in countries along the Belt and Road. Enrich the Bay Area's cross-border e-commerce ecosystem, promote the differentiated development and collaborative progress of cross-border e-commerce enterprises or platforms in the Bay Area, and avoid excessive "involution".

Sun Yutao, CEO of Eurotax, said that with the rapid development of global e-commerce, Eurotax has now become a leading e-commerce compliance SaaS (software and services) company in China and even the world. At present, Eurotax provides VAT compliance, extended producer responsibility (EPR) compliance and product safety compliance services in more than ten countries in Europe, the Middle East and Latin America. In April 2022, the intellectual property compliance platform IPP Master was officially launched, becoming the fourth pillar business of Eurotax.

In the future, Eurotax will continue to delve deeper into the cross-border e-commerce compliance industry, using platform-based, digital, and automated methods to optimize compliance processes and reduce compliance risks, so that compliance will no longer be a burden on sellers, but will be transformed into sellers’ goodwill and competitiveness, helping sellers to market globally.

For a wonderful replay of the entire 3-hour event, you can follow the "EU Tax Master Video Account" or directly search for the "EU Tax Master eVatMaster" public account on WeChat .