According to Securities Daily, dozens of Chinese sellers have participated in a class action lawsuit against Amazon. Amazon has expressed some intention to settle the case, and the case is waiting for Amazon to respond. It is learned that although Amazon mentioned that sellers whose accounts have been blocked can appeal, most sellers’ appeals are unsuccessful. Speaking of this year's sensational account blocking incident, many brands collapsed, including some industry top sellers, and Zebao is one of them. In June this year, it was revealed that three of its well-known brands were suspended from selling by Amazon, which caused a sensation in the industry at the time. It has been more than a few months since then. In the blink of an eye, it is time to review the results of the first three quarters. What will happen to the blocked stores of Zebao? Xinghui Shares announces Q3 financial report Revenue turned from profit to loss year-on-year It is learned that recently, Zebao’s parent company, Xinghui Co., Ltd., announced its third quarter report for 2021. Cross-border navigation , revenue turned from profit to loss year-on-year! Xinghui shares' third-quarter performance plummeted. #Amazon##Cross-border headlines#Cross-border e-commerce video account ▲ Video account focuses on cross-border navigation
The financial report shows that Xinghui Co., Ltd. achieved operating income of 3.014 billion yuan from January to September 2021 , a year-on-year decrease of 13.05% . The net profit attributable to shareholders of the listed company was a loss of 35.0782 million yuan , turning from profit to loss year-on-year. The net profit in the same period last year was 203 million yuan. Looking at the situation in the third quarter of this year, Xinghui Co., Ltd.'s operating income during the reporting period was 587 million yuan , a year-on-year decrease of 58.44% ; the net profit attributable to shareholders of the listed company was a loss of 139 million yuan , a year-on-year decrease of 282.73% . ▲ The picture comes from the announcement of Xinghui Shares In addition, affected by the poor financial performance, the share price of Xinghui Co., Ltd. also fell today. According to Tencent's stock selection news, Xinghui shares saw unusual movements this morning, with the share price falling sharply by 5.19%, hitting a new low in two years (prior to the adjusted price). As of 09:30 a.m., the stock was quoted at 8.22 yuan per share, with a trading volume of 4,376 lots, a turnover rate of 0.15%, an amplitude of 1.04%, and a volume ratio of 9.86. It can be seen that in the third quarter, both the revenue and net profit of Xinghui Co., Ltd. fell sharply, and this is closely related to the incident of Zebao's account being banned. A total of 330 sites have been blocked Zebao's sales volume declined due to account suspension In June this year, Xinghui issued an announcement disclosing that the brands under its subsidiary Zebao were banned from sale on the Amazon platform, but the situation of Zebao’s account blocking was far more serious than the public imagined. It is learned that Xinghui Co., Ltd. also stated in the progress announcement of major company events that since the stores of the three brands RAVPower, Taotronics and VAVA under Zebao were closed in June this year, the company's Anjou, Sable and Hootoo brand stores have also been suspended from sales one after another. As of the date of the announcement, Amazon has suspended sales of Zebao at 330 sites , accounting for 70.21% of the company's total number of sites. At the same time, the frozen funds of the relevant stores are equivalent to RMB 60.0346 million . ▲ The picture comes from the announcement of Xinghui Shares The series of chain reactions caused by the account suspension will also be reflected in the financial report. Looking back at the first half of this year, Zebao achieved operating income of 1.925 billion yuan and net profit of nearly 115 million yuan. Compared with 148 million yuan in the same period last year, the net profit decreased by approximately 30 million yuan. ▲ The picture comes from the announcement of Xinghui Shares Similarly, affected by the account ban , Zebao Technology's sales revenue in the first three quarters of 2021 fell 24.83% compared with the same period last year . Such a huge loss made Damai deeply understand a truth: don't put all your eggs in one basket. Faced with increasingly stringent regulations on the Amazon platform, Xinghui Co., Ltd. has also taken active measures to accelerate its layout on other platforms. Xinghui takes active measures Accelerate the layout of other platforms In the first half of the year, Zebao achieved more than 97% of its revenue on the Amazon platform, and its online revenue was basically achieved through the Amazon channel. In order to avoid the tragedy of account suspension from happening again, it is necessary to reduce the dependence on the Amazon platform. Therefore, facing the heavy losses caused by the account suspension incident, Xinghui Co., Ltd. will take measures to actively respond, mainly including: 1. The company established a special emergency response team Continue to communicate, coordinate and appeal with the Amazon platform, and strive to restore normal sales of related brands as soon as possible. 2. Accelerate the promotion of online multi-platform business strategy The company continues to increase its resource investment in e-commerce platforms such as eBay and Walmart, and focuses on building its own platform (independent site). From July to September 2021, the self-operated platform achieved sales revenue equivalent to approximately RMB 39.23 million, an increase of 152% over the same period last year. 3. Increase offline channel promotion efforts Continue to expand offline markets in Japan, the Middle East, Latin America, Eastern Europe, etc. From July to September 2021, offline channels achieved revenue equivalent to approximately RMB 112 million, an increase of 63.52% over the same period last year. 4. Optimize personnel and organizational structure On the one hand, the company optimized the Amazon operation team according to the actual operating conditions and promoted a group of passionate and management-potential personnel to key operation positions; on the other hand, in order to cooperate with the implementation of the multi-platform operation strategy, the company recruited additional talents who are good at operating other e-commerce platforms. Xinghui shares said that since the account blocking incident, the company has actively reduced the adverse impact on operations in many ways, but because Amazon has huge natural traffic and high user stickiness, and other third-party platforms and self-operated independent sites have relatively small traffic and relatively weak customer acquisition capabilities, they cannot effectively hedge the losses caused by Amazon channels in the short term. Other sellers should also take this as a lesson. Only by dispersing risks, operating in compliance, and abiding by platform rules can they go further in their operations on Amazon. It is the peak season for cross-border e-commerce. However, there have been frequent account suspension incidents recently. Account security is particularly important. However, if you want to increase sales, some operational details cannot be ignored. How can you prepare for the peak shopping season efficiently? Experienced sellers will start from four aspects: 1. Optimize listing and improve conversion rate. 2. Pay attention to the ranking of listing keywords and find the right keywords. 3. Ensure the normal operation of the supply chain and keep the inventory effective. 4. Pay attention to account Liankang to avoid account being blocked. Many tasks are time-consuming and laborious. At this time, a professional ERP can help sellers solve most problems. Report! Lingxing ERP free version is online! Halloween, Black Friday, Cyber Monday, and Christmas are coming soon. Lingxing ERP helps sellers prepare for big sales! Profit report, sales statistics, performance commission, everything is available Advertising strategy, customer service management, store performance are all unlimited Warehouse management, replenishment suggestions, inventory details use long-term open The free version is limited to 300 people! Quickly scan the QR code below to grab yours during the peak season!
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