Amazon Shuts Down 50,000 Chinese Shops Due To Illegal Practices
AMAZON SHUTS DOWN CHINESE SHOPS – Over 50,000 stores from all over China have been booted out of Amazon.
Recently, more than 20 mid-sized and large companies that were selling “made in China, sold on Amazon” products floated the idea of suing Amazon. However, the plan was eventually scrapped after sellers failed to agree on their strategy against the e-commerce giant.
For the longest time, Amazon, much like most e-commerce sites, struggle with sellers conducting illegal practices. These include selling fake items and posting them as original, and of course, uploading fake reviews.
Due to a large quantity of these reports were from Chinese shops, Amazon was prompted to suspend or outright shut down thousands of China-based stores. Because of this, Yang Zongqiang, the lawyer who represented the group for Shenzhen-based Daxin Legal Service said:
While [Amazon] has the right to suspend the stores’ operations, it has no right to hold their goods and capital, which will lead to further damage to the merchants
Last month, Amazon stated that well-known sellers from China were removed due to “review abuse”. Due to this, large companies such as Aukey, Mpow and 340 stores owned by Shenzhen Youkeshu Technology Co.
Furthermore, Youkeshu stated that Amazon has frozen over 130 million Yuan or over $20 million worth of funds. “The merchants are still in the process of appeals, and I don’t think any merchant has initiated arbitration at the moment”, said Zhai Dongwei, founding partner of Guangdong Yingzun Law Firm.
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