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"Suppliers cannot be repaid, bank loans cannot be applied for, employees are facing unemployment, and the profits of the past few years have been emptied overnight," says Wang Xin, the association's president. The industry "has been almost completely broken." Amazon's policy to crack down on the misconduct of fake reviews applies to all sellers, but based on data tracked by New York-based data consultant Marketplace Pulse, all the recently suspended accounts were based in China. The e-commerce giant rejects accusations that it's unfairly punishing Chinese companies. "We ... adhere to the principle of fairness and deal with sellers' violations without discrimination, regardless of the size of the seller's business or which country or region it is from," the company said in a May statement. And on Aug. 14, an Amazon spokesman in the U.S. reiterated its position. "We don't tolerate fake or paid reviews from any seller," he said in an email. "We have always prioritized protecting our store from fraud and abuse and taking the appropriate actions to hold bad actors accountable."
For Chinese companies suspended by Amazon or worried that they might be next, finding alternatives isn't easy. Walmart last year launched an FBA rival, Walmart Fulfillment Services, for the retailer's online marketplace, but so far it isn't a great option, according to Jason Lee, co-chief executive officer of FBAFlipper, a Shenzhen-based advisory firm. "Amazon is just addicting because it has the traffic already," says Lee, who also points to the support network that companies can use when selling on Amazon. "There's an ecosystem-people with courses [on] how to sell on Amazon, logistics providers, payment companies." Walmart's service doesn't have them, he says.
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"Suppliers cannot be repaid, bank loans cannot be applied for, employees are facing unemployment, and the profits of the past few years have been emptied overnight," says Wang Xin, the association's president. The industry "has been almost completely broken." Amazon's policy to crack down on the misconduct of fake reviews applies to all sellers, but based on data tracked by New York-based data consultant Marketplace Pulse, all the recently suspended accounts were based in China. The e-commerce giant rejects accusations that it's unfairly punishing Chinese companies. "We ... adhere to the principle of fairness and deal with sellers' violations without discrimination, regardless of the size of the seller's business or which country or region it is from," the company said in a May statement. And on Aug. 14, an Amazon spokesman in the U.S. reiterated its position. "We don't tolerate fake or paid reviews from any seller," he said in an email. "We have always prioritized protecting our store from fraud and abuse and taking the appropriate actions to hold bad actors accountable."
For Chinese companies suspended by Amazon or worried that they might be next, finding alternatives isn't easy. Walmart last year launched an FBA rival, Walmart Fulfillment Services, for the retailer's online marketplace, but so far it isn't a great option, according to Jason Lee, co-chief executive officer of FBAFlipper, a Shenzhen-based advisory firm. "Amazon is just addicting because it has the traffic already," says Lee, who also points to the support network that companies can use when selling on Amazon. "There's an ecosystem-people with courses [on] how to sell on Amazon, logistics providers, payment companies." Walmart's service doesn't have them, he says.
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