Amazon's holiday season is a mess! Big sellers' funds are frozen, small sellers' accounts are banned!

Amazon's holiday season is a mess! Big sellers' funds are frozen, small sellers' accounts are banned!


Sellers often joke that they are Amazon’s leeks and that they will fall into Amazon’s trap if they are not careful. In reality, sellers who have been “ruthlessly played” by Amazon can shed tears of bitterness.

 
Not only small sellers have to endure Amazon's policy changes every three days , but even big sellers cannot escape Amazon's ruthless judgment. The May Day holiday has just passed, but during this period, the gossip in the cross-border circle has never stopped. The love-hate relationship between sellers and Amazon has sparked a new discussion.
 





Big seller’s account was blocked, is Amazon going to change?


Recently, various major sellers in the cross-border circle have announced their first quarter financial reports. Some of them have delivered outstanding results as usual, such as Anker Innovations, which had a revenue of 2.427 billion yuan, a year-on-year increase of 57.94% ; but some major sellers have lost their glory, and their operating performance has been declining. For example, Cross-Border Link’s net profit was -3.3 billion, a year-on-year decrease of 24%.
 
The gap between big sellers makes people realize the disparity in the world, and Cross-Border Link has become the focus of cross-border sellers. Not only is the continuous decline in its operating performance shocking, but the bankruptcy, sale, and account suspension of its subsidiaries Global Easybuy and Paton have also become the topic of conversation among sellers.
 
On the eve of May Day, news came that the main account of the popular Paton product was heavily fined by Amazon for false orders, the Mpow brand registration was cancelled, and all funds were frozen.
 
  The picture comes from the seller group

This news caused quite a stir in the cross-border trading circle which was quiet before the holiday. Many sellers rushed to the website after hearing the news and asked if the news was true. On the same day, a seller searched for Mpow on Amazon and found that it was "unavailable" .
 
 
When a seller searched for Mpow's listing on Amazon's homepage, the detailed results also showed "unavailable". It seems that there are indeed clues about Paton's Mpow brand.
 
Maybe some sellers are not very familiar with Paton and its Mpow brand, so I will give the sellers a brief introduction.
 
It is learned that in 2020, Paton's parent company Cross-Border Link's revenue was 17 billion yuan, a decrease of 4.77% year-on-year from 2019, and its net profit was -3.3 billion, a decrease of 24% year-on-year from 2019.
 

At the same time, the financial report shows that in 2020, Paton achieved operating income of 4.94 billion yuan , an increase of 43.88% year-on-year from 2019; net profit was 310 million yuan, an increase of 78.19% year-on-year.
 
Mpow was founded in April 2012 and has become the top audio brand on Amazon in North America with its outstanding performance. Judging from Mpow's current sales, the loss of the account suspension may be tens of thousands.
 
As a popular cross-border star brand, the result of Mpow being heavily fined by Amazon is regrettable. After all, Paton has always been a potential stock of Cross-border Communication, and it has been acquired by many industry giants before, making it the most popular transaction in 2021.
 
Some sellers said that there are two main differences in the closure of Paton stores this time:
1. Brand registration is revoked;
2. You can’t see the FBA follow-up sales, only the Amazon warehouse follow-up sales.
 
But in fact, this is not the first time that Paton has been punished by Amazon. It is learned that in 2019, Mpow was removed from the shelves because it was complained about infringement by a US law firm, but the account resumed normal operation not long after.
 

  The picture comes from Zhiwubuyan


History always repeats itself. The same account suspension punishment is different in the reasons. As to why Amazon suddenly banned Paton, many sellers speculated that it was because Paton had fake reviews, while others believed that it was because of the upgrade of Amazon's accountability algorithm.
 
But for big sellers, account blocking is commonplace. Given Paton’s strength, many sellers believe that their accounts can be restored to normal after a while.
 

The punishment of Paton by Amazon has also caused sellers to think about the future direction of Amazon. Some sellers said that Amazon has changed its approach and the survival environment for both large and small sellers will become more difficult in the future.
 
   The picture comes from the seller group

This wave of pre-holiday audits not only affected cross-border sellers, but also ordinary sellers. Is it Amazon's law to sweep sellers' accounts before the holidays?
 





Has scanning numbers before the holidays become a rule for Amazon?


During the previous Qingming Festival holiday, the dreaded second trial can be said to have bombarded half of the cross-border circle, and many seller accounts "could not escape this disaster."
 
As of May Day, Amazon has not relaxed its audit in the slightest. Not only has it conducted postcard verification on sellers on a large scale, but there has also been a new round of account suspensions without reason .
 
A few days ago, in the seller communication group, some sellers reported that their products were on sale normally, but their accounts were blocked by Amazon for unknown reasons. At the same time, Amazon did not send an email to the seller to inform the reason for the blockage, nor did it notify the seller of performance.
 
  The picture comes from the seller group

Many sellers also said that Amazon has started to sweep their stores again, and their stores have been deactivated without performance notifications, and this problem has also occurred in accounts with real information.
 
  The picture comes from the seller group

Coincidentally, there are also sellers complaining about this on the forum: many accounts that had appeals within 30 days were fine yesterday, but their sales rights were inexplicably suspended this morning. There was no performance notification, and no emails in the mailbox. They contacted Amazon customer service but still didn’t know the reason.
 
  The picture comes from Zhiwubuyan

In response, a service provider said: Today, a large number of stores on Amazon were suspended. These stores have no appeal button and no notification from the store. It may be that there is a problem with the Amazon system itself . Sellers should not blindly appeal for the time being, but observe for a few days.


The above incidents also reflect the sellers' speculation about the change in Amazon's wind direction. Regardless of the reason for the account suspension, Amazon always has zero tolerance for sellers' violations.
 
As the recruitment of merchants is gradually tightened, Amazon accounts are particularly valuable and their prices are rising. Around the holidays, account problems are more common, so sellers must always be vigilant and take every step carefully to avoid platform penalties.



<<:  With a scale of over 40 billion US dollars and favored by SoftBank, how can brands take advantage of the "east wind" of Southeast Asian social e-commerce?

>>:  Storage capacity drops sharply, Prime Day postponed! Is it time to give up on Canada?

Recommend

Amazon starts charging store balance for negative balance overnight

Normal, once there is data abnormality, such as s...

What is Newegg? Newegg Review

Newegg is a professional e-commerce consumer servi...

What is GoldieBlox? GoldieBlox Review

GoldieBlox is a toy brand that aims to make girls ...

What is hefawei? hefawei review

hefawei is an international B2C fast fashion e-com...

What is OKS? OKS Review

Shenzhen One-Stop International E-commerce Service...

Amazon operation skills and knowledge points

1. In the event of a buyer’s return, whether it is...

What is Citilink.ru? Citilink.ru Review

Citilink.ru is a leader in Russia's 3C home ap...

What is Primary? Primary Review

Primary was founded in 2015 and is an Internet chi...

What is Ruston? Review of Ruston

Ruston (Heilongjiang Ruston International Logistic...

What is FOBGOODS? FOBGOODS Review

FOBOODS is an emerging and fast-growing global B2B...

If you are working alone on Amazon, you can consider this model

We all know that Amazon has two main models: mass ...