The main link was removed from the shelves, and another seller closed down his company! How big is the risk of Amazon?

The main link was removed from the shelves, and another seller closed down his company! How big is the risk of Amazon?


The wave of Amazon account bans that has lasted from the end of April to now is still continuing. During this period, everyone is in danger, and there has been constant news that the industry will face a major reshuffle.

 
Last week, many big sellers in Shenzhen were "hunted down by Amazon", and there were even reports that the company would be disbanded at the end of the month, and employees were leaving one after another. Not only that, many big sellers whose accounts were blocked began to lay off employees drastically.
 
However, Amazon's "account blocking sickle" continues to take action, and more and more Chinese sellers are involved in this ruthless ban, including big sellers who are going public or raising funds, as well as low-key small sellers.
 
No matter whether you are a big seller or a small seller, you cannot escape Amazon’s ruthless sanctions. Once there is a problem with an account or link, the fate of the entire company is at stake.
 

Another seller shuts down due to link issues

 
This morning, news broke that a certain seller company was facing closure due to the removal of its main profit link from Amazon.
 
Subsequently, a seller sent two screenshots of a notice issued by the company's senior management, the content of which is as follows:
 


Important Notice



After the main profit link of vacuum cleaners was removed from the shelves in May, the links of toothbrushes were all removed from the shelves in June . The sudden death of the product line that could have generated hundreds of thousands of profits for the company a month caught me and my colleagues off guard.


I believe that the company's current business model and brand strategy have low long-term profitability and high risks, and it is no longer possible to achieve the five-year goal of IPO. Therefore, I decided to shut down the company and enter the liquidation stage.


The picture comes from the seller communication group

 
At the same time, the person in charge also further explained the company’s next plan in the announcement:
 
1. The company will enter the liquidation stage on July 1. All employees can stop coming to work and clocking in at the company starting from Thursday. The shops may be sold to other people.

2. All evaluation work has been stopped at this stage, and the refund process for orders that have been tested will be submitted normally in the next two days.

3. All unfinished celebrity projects will be stopped.
 

While searching for information, the editor discovered that the company's Boss Direct Recruitment still retains some recruitment positions, including popular cross-border positions such as product development, off-site promotion, visual design, etc., with a total of 14 positions recruited.
 
This also shows that the company's previous business conditions were still very impressive. It was only because the link was removed too suddenly that the company had to make the decision to shut down.
 
 
To a certain extent, the fate of cross-border companies is closely linked to their Amazon accounts, and they share the same fate.
 
In today's generally depressed cross-border market, it seems that no seller involved in this "account blocking disaster" is spared, and their situations are very similar, including closing down the company, laying off large numbers of employees, or going bankrupt and liquidating.

 

Selling big is not enough to cope with Amazon's crazy pursuit, and the risk of account suspension is often more unbearable for small and medium-sized sellers. Therefore, account suspension is fatal to sellers.

 
Therefore, some sellers lamented: Is the risk of Amazon really so great?

 

How big is the risk for Amazon?

 
There is a lot of discussion about account suspension, and this cross-border suspension storm has also made more sellers think: How big is the risk of Amazon? Should sellers put all their eggs in one basket?
 
For big sellers, the loss of a one-day account suspension is unimaginable. And since the news of the suspension came out, the account has not been restored to normal.
 
   The picture comes from Zhiwubuyan
 
Some sellers believe that for big sellers, no matter how many stores they have, there are only a few valuable brands . If a brand dies, it means tens of millions or even more in inventory backlog. Such big sellers do not actually have much available liquidity. When they are unable to repay their debts and have difficulty in financing, they can only file for bankruptcy or pay out of their own pockets to repay their debts.
 
Some sellers also said that this time Amazon directly banned the brand, which is equivalent to a brand built from scratch on Amazon by a company being directly wiped out by Amazon. The extent of the blow to Amazon companies can be imagined.
 
   The picture comes from Zhiwubuyan
 
Another seller joked humorously: I’m not sure whether we will go bankrupt, but the competition for bottles in Shenzhen Bay No. 1 is fierce, and I can hardly get more than others.
 
In general, most sellers agree that account suspension has a far-reaching impact on big sellers. The various disturbances that have occurred in recent times have further verified the fact that Amazon's risks are increasing exponentially.
 
What do you think about this? Please leave your opinion in the comment section~



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