China's door to international commerce closes as Amazon closes tens of thousands of Chinese stores.
The 'Make in China, Sell on Amazon' model promoted by the Chinese government is facing major setbacks amid rising US-China tensions. Billions of dollars and thousands of Chinese stores have been frozen by Amazon.
Tomtop Technology, a company founded in Shenzhen and behind dozens of stores on the Amazon e-commerce platform, said more than 50 of its stores have been closed by Amazon.
About $63 million in revenue has also been frozen by the US commerce platform since the end of July.
"This may be due to inappropriate product reviews. Amazon believes these reviews violate their policies," explains Tomtop's parent company, Yiwu Huading Nylon.
Tomtop stores are the latest target in a campaign to clean up stores on Amazon. Previously, Chinese stores such as Aukey, Mpow and 340 stores owned by Shenzhen Youkeshu Technology Company were removed from Amazon.
The Chinese government is extremely angry because their company is being suppressed, Ms. Hua Chunying has asked Amazon and the US side to explain the incident that caused great damage to the Chinese economy.
According to the South China Morning Post (SCMP), the cause seems to stem from the "Made in China, sell on Amazon" model promoted by Beijing.
This model has been of great benefit to Chinese manufacturers, especially during the COVID-19 pandemic that has forced many people around the world to stay at home. Sales of Chinese stores really boomed during this period.
However, according to SCMP, since Amazon launched the crackdown campaign, many Chinese companies have struggled. The platform pays special attention to product reviews and ratings in order to invite and encourage latecomers to purchase the product.
The campaign began in May of this year, although the ban on comments promoting purchases has been in place since 2016. According to SCMP, Amazon suspects that Chinese companies have paid many commenters. to say good things about the product. Their product is advertised and commented as very good, but when consumers buy it, they go to Amazon to curse, saying that the product is not quality, it is horrible.
Many Americans have complained as well.
The Hong Kong newspaper said Amazon's crackdown this time on an unprecedented scale. It slows down the Chinese economy
More than 50,000 Chinese sales accounts on Amazon have been frozen or restricted, causing losses of more than 100 billion yuan, according to statistics from the Shenzhen Cross-Border E-Commerce Association.
"In order to earn the trust of our consumers, we have devoted significant resources to preventing fake or encouraging (purchase) comments from appearing on the platform," Amazon said in a statement. . fox.
Chinese companies, including Tomtop, have tried to minimize the damage by redirecting to other platforms or suing Amazon, according to SCMP.
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