Shocked! Shenzhen's popular store was frozen by Amazon, with bad debts exceeding 10 million

Shocked! Shenzhen's popular store was frozen by Amazon, with bad debts exceeding 10 million
The May Day holiday has just passed, but the Shenzhen Amazon seller community did not have a peaceful time during this holiday. Some big sellers had their main stores closed before the May Day holiday and have not been unblocked until now ; some big sellers received surprise inspections from the Spanish tax authorities and may face large tax refunds.


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 .


At that time, some sellers also searched for Mpow on the Amazon front desk, and it also showed an " unavailable " status .


And some sellers searched for Mpow's listing on Amazon's homepage, and the detailed results also showed "unavailable" . It seems that Patonson's Mpow brand has indeed appeared.

But in fact, this is not the first time that Paton has been punished by Amazon. It is understood that in 2019, Mpow was removed from the shelves because it was complained of infringement by a US law firm, but the account resumed normal operation not long after.


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 .

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.


In addition, there is even more shocking news from a well-known seller in South China City. Due to the freezing of Amazon stores, it is estimated that the bad debts that cannot be recovered will exceed 10 million !


As of the end of 2020, the big seller had accounts receivable of 228 million yuan on Amazon, of which 11.02 million yuan was not expected to be recoverable because the store was closed by the platform, and all of it would be provided for bad debts.

Someone in our seller group once joked that 90% of Amazon sellers have had their accounts shut down. When faced with such misfortune, most sellers will try to file a complaint immediately. If they really can’t handle it, and the amount involved is too large, they will try various ways to find a service provider to resolve the issue.

Some well-known sellers will have more communication channels and can generally appeal to their accounts more quickly. However, the ultimate power of life and death is still in the hands of the platform. When doing business on the platform, if the account is closed due to illegal operations, the seller is often in a passive state!

Even regulatory agencies attach great importance to the operation and tax compliance of cross-border e-commerce companies. Last year, a listed company wanted to acquire a well-known Shenzhen-based retailer. The China Securities Regulatory Commission specifically asked the retailer whether it had engaged in fake orders during the reporting period .

This Shenzhen-based super seller with a market value of billions of yuan had over 10 million yuan frozen by Amazon last year and could not get it back. This is really unimaginable! If it were a small seller, the company would have gone bankrupt long ago!

This may also indicate that Amazon’s platform red line must not be crossed! No matter how powerful the seller is, all the money he makes by working on the edge of a knife will be contributed to the platform as soon as he closes his store!

(Source: Cross-border Cloud Classroom)


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