Attention! A large number of Chinese sellers are under investigation and a large number of listings have been removed!

Since the UK implemented stricter VAT regulations on January 1, the prices of Chinese products sold on Amazon and eBay have risen sharply. This is because the new regulations require platforms to directly collect VAT from third-party sellers in order to combat tax evasion by e-commerce sellers.

Currently, platforms such as Amazon and eBay have launched large-scale investigations, resulting in significant price increases for thousands of products on the platform overnight.

According to sellers, the prices of many products have generally increased by about 20% . On Amazon, a scale that was priced at £6.95 on December 30th rose to £8.29 on January 3rd. The price of a fitness tracker watch increased from £20.39 to £23.99, a set of bicycle lights increased from £12.99 to £14.99, and a pair of warm gloves increased from £10.99 to £12.99.

Julius Oliveti, a British seller who competes with many Chinese sellers, said: "The change is very significant. Many product lines that were previously dominated by Chinese sellers have seen their prices increase by about 20% . It is not uncommon to see some price fluctuations, but I have never seen anything like this. It is hard not to suspect that they did not pay any VAT before and now they have no choice but to increase the price of the goods . "

Previously, according to a report released by the House of Commons Public Accounts Committee in 2019, many Chinese sellers impersonated British companies on British online platforms by providing false VAT numbers. The UK Revenue and Customs Administration estimates that fraud on all e-commerce platforms may cause taxpayers losses of more than 1 billion pounds each year .

Currently, with the new VAT law announced after Brexit, all e-commerce platforms must be responsible for collecting VAT on goods sold on their platforms. At the same time, the UK Revenue and Customs (HMRC) will also investigate sellers who are obviously non-compliant from January 1 and hold them accountable for tax evasion. If the seller does not provide a reasonable explanation, the seller will not be allowed to continue trading on the platform.

In this regard, the editor reminds everyone that Europe's review of VAT is very strict. In the new year, in addition to the UK, other countries may also introduce similar policies. Sellers should pay attention to local tax laws in a timely manner to ensure compliance operations.

In addition to VAT, there is another thing that sellers should pay attention to. Some sellers said that all the listings of fascia gun products sold on Amazon Japan have been removed from the shelves. The reason is that the Japanese site suddenly classified fascia guns as professional medical devices . These fascia gun products that have been listed require corresponding certification qualifications.

When the bad news of the product being taken off the shelves came, some sellers said that they had already sent a lot of goods to overseas warehouses, and the value of the fascia guns was not low, so this was really tragic!

In this regard, some sellers said that the sudden delisting storm made them once again realize the ruthlessness and strength of the Amazon platform , and they must be more cautious in the future. After all, there are too many unexpected situations and it is difficult to guard against them.

Besides Japan, the fascia gun has also recently caused quite a stir in the United States. According to reports, because the lithium-ion battery system may overheat and cause a fire, the U.S. Consumer Product Safety Commission (CPSC) urgently recalled about 12,360 Massimo fascia gun products . The products are shown in the picture below↓↓↓

The product was sold exclusively at Costco from April to May 2020 for about $60. To date, Massimo has received three reports of fires, resulting in more than $15,000 in property damage , but no injuries.

For a time, the fascia gun was at the center of the storm. Speaking of fascia guns, it is definitely a well-deserved hit product in 2020. It has a place in Shopify's top 20 popular products of the year, and the search popularity on Google Trends is not low recently.

However, because it is a hot-selling product, sellers should pay more attention to potential risks when choosing to sell it, such as product quality, infringement, compliance certification, etc. Only by conducting a comprehensive investigation can the above risks be avoided and losses be minimized.

(Source: Cross-border Black Technology)

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