Amazon's store closures continue! Where is the safe way out for sellers?

Recently, there have been news reports that the store closures that have turned the US site upside down will continue to spread! One of the driving forces behind this, the UK Competition and Markets Authority, announced a new round of investigations!

The UK Competition and Markets Authority (CMA) launched an investigation at the end of May, with the main goal of determining how Amazon and Google handle fake reviews, such as how to review fake reviews and whether Amazon has sanctioned the corresponding sellers after determining that there are fake reviews.

Judging from the timing, the CMA's investigation is definitely related to a series of big-selling store closures that began in May. Even if it is not the main reason, the CMA is one of the key driving forces behind it. The new round of investigations recently announced by the CMA will continue to collect more information from Amazon to determine whether Amazon has violated consumer laws (inaction on false reviews).

This also explains why Amazon has been hitting out at various top sellers in the past few months. After all, CMA investigators are unlikely to flip through dozens of pages of products to find small sellers. It is definitely more likely that top products with higher rankings will be hit. In order to prevent a crash, Amazon had no choice but to cut off a wave of top sellers.

The CMA announced that the investigation has entered the next stage, which means that the review of Amazon is still continuing. We sellers really have to face a normal situation of closing our stores . Not only can we not run reviews, but we also have to pay attention to the fundamental issue of account security. For example, in this wave of store closures, few American sellers were caught and blocked, and local big sellers are also alive and well. You say that Amazon discriminates against Chinese sellers, and it is possible that the European and American governments are targeting China, but there is no real evidence. In this case, I suggest that our sellers can secretly start with American accounts.

The biggest advantage of US local accounts is that they are resistant to store closures. According to incomplete statistics, the store closure rate of accounts applied for by US companies is less than 1%. However, the store closure rate of accounts applied for by mainland and Hong Kong companies is as high as over 30% . The reasons for this difference are that Chinese sellers used too many black technology operations in the early days, and secondly, if something happens to the account, such as fraudulent operations, Amazon can hold US local stores accountable and avoid its own responsibilities, while Chinese stores cannot find the sellers when something happens, and small and medium-sized stores can easily run away. Under the influence of various factors, Amazon is naturally more vigilant against accounts registered in China , so it is not unreasonable that US local accounts can survive waves of store closures.

Because of the above reason, registering a store by a U.S. company will be faster and take less time than opening a store globally . In addition, local accounts registered by U.S. companies can also handle categories that are difficult for domestic companies to pass (such as jewelry).

In fact, Amazon provides more support and preferential treatment to local small and medium-sized enterprises. For example, the annual Small and Medium Enterprise Award and the fixed small and medium-sized enterprise support program of Primeday are only for American companies. Only Amazon stores opened by American companies can participate.

In terms of payment collection, if an American company opens an account in the United States, it will be more convenient and faster to collect cross-border e-commerce payments. The exchange rate loss of bank account payments is less, and US dollars can be directly converted into RMB. Cash withdrawals from the Amazon platform and PayPal can be deposited into a US bank account free of charge.

Compared with Chinese companies, American companies also have certain advantages when registering, such as freedom of naming, simple registration and maintenance, no restrictions on business scope and registered capital, etc. Moreover, American companies' products are more trusted by American consumers, and customers will give priority to American companies' products when shopping, which will help American sellers to increase sales.

In addition, the recent anti-dumping and punitive tariffs imposed by the United States on Chinese companies have become increasingly severe. Registering a US company will be of great help in reducing import and export procedures and circumventing tariff barriers.

The registration process for a US company is not complicated and is mainly divided into the following steps:

1. Provide the company name, conduct name search, and confirm the company name;

2. Determine the business scope of the registered US company;

3. Submit application materials to the New York State government department for verification;

4. Handle various business related to the registration of a US company, such as checking, sorting and submitting documents;

5. Obtain company registration documents.

Let me remind you that although the steps are not complicated, the United States is far away from China and many laws and regulations are different from those in China. In addition, the requirements for submitting company registration information to the US government are quite high. Many customers are unable to go in person to handle it. Therefore, everyone will choose a reliable agency to register to avoid problems during the process.