According to a survey conducted by , for Amazon sellers, the most profound memory left in 2021 is undoubtedly the internal circulation and account blocking . The fierce price war has caused the overall profit to shrink continuously, and Amazon's account blocking has caused heavy losses to many sellers.
Under this double pressure, many small and medium-sized sellers are unable to resist and can only seek other ways out, while the front-end big sellers have also experienced a huge shock and reshuffled the pattern. Now, at the turn of 2021 and 2022, many sellers are deeply confused when looking forward to the new year, and looking at the big sellers who are the vane of the industry, the future development is also full of uncertainty due to various tests at the current stage. Global Easy Shopping falsely purchased goods worth 4.4 billion, and Amazon froze 46 million of them! Not long ago, the case of Global Easy Shopping being filed for bankruptcy by the debt collector was heard by the Taiyuan Intermediate Court, officially declaring that the once billion-level retailer entered bankruptcy liquidation procedures. However, Global Easy Shopping did not fall silently. Recently, a letter of inquiry from the Shenzhen Stock Exchange once again exposed its old debts to the public. It is learned that the Shenzhen Stock Exchange raised inquiries in May regarding the following issues in Cross-Border Link’s 2020 annual report: 1. False purchases of goods worth RMB 4.424 billion 2. Failure to provide financial invoices as required by the annual auditor 3. No invoice was provided for the 129 million logistics expenses spent in 2020 4. Failure to provide evidence for writing off accounts receivable of RMB 83 million from some platform sellers In response to this, following its reply to the Shenzhen Stock Exchange in June, Cross-Border Links recently issued another announcement to provide additional explanations. ▲ The picture comes from the announcement of Cross-border Communication Regarding the issue of false inventory, Cross-Border Link stated that the company disposed of 4.424 billion yuan of inventory in 2020. Because its subsidiary Global Easy Shopping transferred accounts receivable into inventory, the inventory was inflated. In order to digest the inflated inventory, Global Easy Shopping falsely disposed of 4.424 billion yuan of inventory last year, including 1.779 billion yuan in inflated operating costs in 2020 and 2.645 billion yuan in false write-offs of inventory in 2020. On the other hand, due to the sharp decline in Global Easybuy's revenue in 2020, a large number of employees resigned. Because there was no consensus on severance pay and compensation, the financial staff failed to obtain the accounting vouchers in a timely and complete manner, resulting in the failure to provide relevant original vouchers and approval materials. In response to questions about whether the logistics costs were fictitious, Cross-border Link stated after verifying the historical settlement situation that the logistics costs for which invoices were not provided in 2020 were cross-period costs, that is, the costs that should have belonged to 2019 were recorded in the accounts in 2020. ▲ The picture comes from the announcement of Cross-border Communication In addition, Cross-border Communication also disclosed the losses of various platforms in 2020, totaling 83 million yuan in accounts receivable. 36 million yuan was the commission fee that had been deducted by the overseas payment platform, but the company did not handle the account in time; the remaining 46 million yuan was affected by Amazon's account blocking wave. After the company's seller account was blocked, the funds in the account were frozen and could not be recovered. ▲ The picture comes from the announcement of Cross-border Communication It is learned that after Cross-Border Link made a supplementary statement, the Shenzhen Stock Exchange required it to explain in detail the specific year and corresponding amount in which Global Easy Shopping falsely transferred accounts receivable of 4.424 billion yuan into inventory , and to verify and disclose in additional detail whether the 2.651 billion yuan of inventory provisioned by Global Easy Shopping at the end of 2019 was part of the above-mentioned 4.424 billion yuan of inflated inventory business. It can be seen that Global Easybuy's current bankruptcy has actually been buried for a long time. The strategic decision-making errors in the peak season stocking caused a butterfly effect such as inventory backlog and capital chain blockage, which further led to a significant shrinkage in business scale in 2020, serious losses, and ultimately a large loss of talent, falling into an operational crisis, and completely declining. The regrettable fall of the former big seller is a pity and a reminder of the unpredictable nature of the cross-border market. However, when one whale falls, all things come to life. When someone falls, someone else rises. As a big seller, Zhiou Technology is going against the tide in the turbulence. Cross-border navigation , with revenue of nearly 3.2 billion in the first half of 2021, this cross-border blockbuster is planning to go public! #Amazon##Cross-border headlines#Cross-border e-commerce video account ▲ Video account focuses on cross-border navigation
Revenue in the first half of the year was 3.2 billion, and Zhiou IPO is launched again! Although the platform has been in constant turmoil this year, with many big sellers affected by the wave of account bans and even a listed big seller going bankrupt, at the same time, some big sellers have grown against the trend and embarked on the road of applying for listing, and home furnishing big seller Zhiou Technology is one of them. In June this year, Zhiou's IPO was accepted by the Shenzhen Stock Exchange, and it planned to raise nearly 1.5 billion yuan to strengthen research and development. However, at the end of September, the IPO was forced to terminate due to the expiration of financial information. However, now Zhiou has submitted new information and disclosed the prospectus, and the listing on the Growth Enterprise Market is on the agenda again. ▲ The picture comes from Zhiou Technology’s announcement It is understood that Zhiou Home Furnishing is mainly engaged in the research and development, design and sales of its own-brand home furnishing products. Its products mainly include furniture series, home series, garden series, pet series and other categories. Its sales market is mainly facing Europe, North America, Japan and other countries and regions. According to the prospectus released by Zhiou, in the first half of this year, Zhiou achieved operating income of 3.199 billion yuan and net profit of 140 million yuan. Its performance has been growing steadily year by year since 2018. ▲ The picture comes from Zhiou Technology’s announcement Zhiou has carried out sales business on online B2C platforms such as Amazon and eBay. From January to June 2021, its online B2C channel achieved revenue of 2.634 billion yuan, accounting for 82.35% of its main business revenue. Amazon is Zhiou's main sales channel. From 2018 to date, Zhiou's sales revenue through Amazon accounted for 89.32%, 81.13%, 71.80% and 69.31% of its main business revenue respectively. However, this also reveals a major hidden danger that Zhiou faces during its listing and operation: it is highly dependent on Amazon. The prospectus shows that Zhiou's revenue from Amazon accounts for a very high proportion. Although the proportion has been slightly declining year by year, it still accounts for more than half of the company's revenue. Once it is hit by Amazon's regulatory crackdown, it is likely to disrupt the company's stable operation. In this regard, Zhiou also pointed out that if Amazon's platform policies and platform fees are significantly adjusted, or if the company's cooperative relationship with the Amazon platform undergoes major adverse changes in the future, and the company fails to expand other sales channels in a timely manner, it will have an adverse impact on the company's business activities. In addition, factors such as intensified market competition, severe epidemic situation, and demand fluctuations have also brought some unpredictable risks. The continuous increase in various service fees has caused Zhiou's profits to decline, and the inventory scale that has expanded year by year with the business scale has also increased the burden of Zhiou's capital turnover. However, at present, Zhiou's development is showing a stable upward trend, and its business growth continues to improve. We will have to wait and see whether this dark horse in the home furnishing industry, which has emerged and grown rapidly, can successfully go public.
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