A store closed in 2 minutes! Another big seller in Shenzhen collapsed

Today there is another shocking news. A large number of stores of Shenzhen's well-known retailer Tongtuo were recently reported to have been closed. It was reported online that one store closed down every 2 minutes on average, and more than 300 stores have been closed!

The news has been confirmed by many parties. A large number of brand stores under Tongtuo have been closed one after another. Now they are implementing emergency plans and negotiating with Amazon while preparing for the worst.

It is worth noting that the reason why Tongtuo’s stores were closed one by one in a very short period of time was because Tongtuo adopted a cross-authorization method internally, and the layout was based on a single brand authorization of multiple different stores. After Amazon made this brand association, it was equivalent to stepping on a series of mines that exploded one after another . This is the most terrible situation I mentioned before. Our sellers have no defense in brand association. In order to save costs or constraints, they usually use a single brand to authorize multiple stores, or even cross-hold multiple brands . Who would have thought that one day Amazon would check the brand authorization when checking for fake orders!

Therefore, Tongtuo's cross-authorization is definitely one of the fastest ways to kill an account. According to the brand-related account-hanging rules we summarized last time, if there is only one brand and multiple stores are authorized, the chance of hanging is relatively small. Cross-authorization can quickly stack up the associated elements . If multiple brands authorized by a single store have weak associations, then this store will directly become a strong association and cause the account to hang. Once one or two brands are hung, several brand authorization lines can be quickly detonated. That's why Tongtuo exploded so suddenly this time. It is a standard chain reaction.

Now that top sellers are experiencing one default after another, it can be said that this is the best time for small and medium-sized sellers and new sellers.

Have you noticed that many of the sellers that Amazon has cracked down on this time are well-known big sellers? Although small and medium-sized sellers have also been affected, they are generally not as serious as big sellers.

Some of our friends in the group laughed at themselves because selling small items is not profitable. Here I want to clear the name of Amazon. This heavy blow to get rid of a large number of sellers is also a loss for Amazon. You should know that most of Amazon's third-party orders come from these top sellers. If they fall, Amazon's overall platform order volume and traffic will definitely be affected. Products with thousands of reviews are one of Amazon's important competitive advantages. The strategy of the entire platform is to focus on products instead of stores. Even the official has publicly stated that listings are Amazon's property. So this time the big sales were affected, the top products were removed from the shelves and turned into dogs, which is definitely a blow to the overall traffic of the platform.

This is why sellers have been complaining about the double bottom of traffic and orders since the end of June, because the traffic of the entire platform has fallen due to the lack of top products. The reason why Amazon dares to do this despite the consequences is that there are too many new sellers on Amazon and there is no shortage of new products. The Day One principle means that Amazon will not be particularly biased towards old sellers, but will give new sellers many opportunities to sell new products. This is also the reason why Amazon, a decades-old platform, can still maintain its vitality and top spot. Therefore, the vacuum caused by the absence of these top products will soon be filled by latecomers. In addition, the end of the year is Amazon's traditional peak season, and traffic will return to normal levels in a short time.

The top sellers are in a very chaotic situation now, and the remaining ones that have not been in trouble are probably busy making heroic efforts to transfer resources to temporarily safe stores. Although the market vacuum during this period is very beneficial to us small and medium-sized sellers, we must also prepare for a rainy day. In order to prevent the platform policies from changing again in the future, we must make a multi-platform layout as early as possible, and we cannot put all our eggs in one basket. Finally, I have prepared a multi-platform layout for you: Walmart.