Big sellers are still closing down stores! Is it really targeting Chinese sellers?

Today, another big seller in Shenzhen was revealed to have internally announced a massive layoff because a large number of its brands were implicated and their stores were closed by Amazon, making it unable to operate normally!

It was reported online that several stores of this best-selling brand were suddenly closed on the 14th. After emergency handling, there was no room for turning back, so a layoff announcement was issued today.

This is the number of Amazon top sellers that have been affected by the brand-linked punishment incident, and strangely, it seems that no local American sellers have been affected by this ban, but our Chinese sellers have been banned, checked for small cards, fake orders, and brand associations. So from the beginning of this wave of bans, some sellers speculated whether this was the US government's intention to target Chinese sellers.

Last week, when we were tracking and reporting on this wave of store closures, there was news that the US government was behind the closures and had intervened to deal with these big sellers, and that they had a long list of names that could be deleted until September!

Recently, news has leaked out, pointing the finger at the US government, saying that the US government has indeed personally given Amazon's senior management a list of names to be investigated and to close down and remove stores that violate regulations. It also claims that 80% of its top sellers will be affected . This is similar to the news we found last time that 200,000 accounts were lined up for deletion.

The two pieces of news are similar, but the sources are both pretty good. As I said last time, the credibility of such exaggerated numbers is mostly questionable, but there is no doubt that this wave of store closures is continuing without an end. The latest to fall is Ancient Technology mentioned at the beginning of the article. Is this store closure really going to become a normalized policy as we predicted?

If we want to know how long the store closures will last, we need to make sure that the US government is really the mastermind behind this.

In fact, there was a very important event in the past two days. On the surface, it was normal international cooperation, but in fact it was a big chess game played by the United States. The players were governments of various countries, and the pieces were multinational companies like Amazon. . .

The G20 Finance Ministers and Central Bank Governors Meeting concluded in Italy these two days, and all parties passed the consensus on the "global minimum corporate tax" reform at the meeting.

A lot of the content is irrelevant to what I want to talk about this time, so I will summarize two of the most critical policies for you.

1. The lowest global unified tax rate is 15%. The corporate income tax rate of any multinational company in any country cannot be lower than 15%.

2. Multinational corporations must retain 30% of their profits in any country.

Here I will tell you two facts to help you understand the big chess game of the United States. First, many multinational companies will set up their headquarters in places with ultra-low tax rates to avoid taxes, such as the well-known Cayman Islands . In addition, many developing countries are using low tax rates to attract multinational companies to do business there.

Another reason is that due to the economic shutdown caused by the epidemic, all countries are short of money, and the 30% profit left by multinational corporations is like a life-saving straw.

The G20 global tax rate has evened out the corporate tax rate difference between developed and developing countries. Without tax rate concessions, multinational companies will certainly be more inclined to move their markets and headquarters back to the developed market with better supporting infrastructure - the United States, and the United States will be able to realize its long-cherished wish of "manufacturing returning to the United States" . This is the United States's conspiracy, using 30% of the profits of multinational companies to attract all other countries to help the United States avoid the current economic crisis through the "global tax rate" policy.

Have you noticed that in this round of conspiracy, several multinational companies led by Amazon are the lambs to be slaughtered. Amazon was exposed to have paid zero taxes in 2018, but it saved billions of taxes by hiding around the world through various tax avoidance methods. Amazon was the first to suffer the consequences of the US government's actions.

So now Amazon must follow the US government's lead and do whatever it says, regardless of the losses to Amazon from blocking so many big sellers . In short, it will first meet the government's requirements in exchange for some preferential treatment after the implementation of the global tax rate policy. Eliminating Chinese sellers is also in the interests of the US government. "Manufacturing returning to the United States" also requires preparing the market for these companies. How can these companies come back when the market is already full of Chinese people?

This is why Amazon has not dared to come out and explain why so many stores have been closed. Throughout American history, this kind of operation of smiling on the surface but stabbing in the back is what the Democratic Party is best at. The insidious and wily Uncle Sam is back again. . .

Too many big sellers have gone bankrupt in this wave of store closures, which has actually had a great impact on the Amazon market. In this era of transition and reshuffling of old and new rules, what small and medium-sized sellers can do is to make multi-platform layouts to spread risks and wait for the day when platform policies and wind directions tend to stabilize. Sellers who can survive such a storm can also reap the first fruits after the weather clears up.