More than 30 accounts were blocked! Billions of dollars of funds were frozen after billions of dollars of sales

Compared with the previous two years, this year's cross-border circle seems unusually calm on the surface, but this is not the case. While the repeated epidemics, platform policy changes, shipping difficulties and the international environment have put pressure on sellers, there are still undercurrents in the circle.

More than 30 accounts were blocked! Shenzhen sellers withheld tens of millions of dollars in payments

A seller revealed that more than 30 Amazon accounts of Shenzhen ** Electronic Technology Co., Ltd. were shut down overnight by Amazon. Currently, tens of millions of funds in the Amazon accounts cannot be withdrawn, tens of millions of payments have been deducted , and the date of account unblocking is still unclear. In addition, the company's account liquidity is very low, and the company's operations have fallen into a dilemma.

It is understood that the company is located in Longhua, Shenzhen, and is committed to Amazon boutique operations. It mainly sells 3C, outdoor and home products through the Amazon platform , and has been deeply involved in developed markets such as North America, Europe, and Japan, and ranks among the top in market share. As early as 2020, the company's turnover had reached 500 million yuan.

Through multiple recruitment channels, the editor found that the company is still recruiting project managers and product managers, which shows the suddenness of the account suspension incident.

It is gratifying that although the company has fallen into operational difficulties, it still issued a "Notice to All Employees Regarding the Company's Operational Difficulties" to allow all employees to make early plans.

1. For employees currently employed who choose to seek another way of life, the company will immediately settle their basic salary for February, March, and April up to their last job, and will settle it to the departing employee within one week of leaving the company;

2. The company stated that the current situation is unclear and that it cannot ensure that basic salaries for employees working with the company will be paid on time, nor can it ensure whether bonuses will be paid, how much they will be, or whether they can be paid on time.

Judging from the content of the announcement, although the company has encountered some difficulties, it is still fulfilling its previous bonus promise to employees and will settle employees' wages on time. Compared with the "operations" of some companies in the industry , this is rare.

Regarding the company's experience, some sellers said that under the tightening policy, they must have done something opportunistic and it was not a loss to be blocked, but many sellers also expressed sympathy. In the context of repeated epidemics, wars, tax reforms, and high logistics costs, for companies with thin profits, the account blocking is undoubtedly a bolt from the blue. At the same time, some sellers said that the seized goods should be available, but the frozen funds will most likely be withheld by Amazon in the name of fraud.

As Amazon's platform policies have been tightened again and again, it is necessary to be prepared for danger. Undoubtedly, this account suspension has once again focused sellers' attention on how to diversify risks. In addition, many sellers have reflected that Amazon's traffic costs are getting higher and higher. Therefore, developing new platforms has naturally become a new trend in the cross-border circle.

The results are remarkable, and the multi-platform layout has become a powerful tool for increasing sales and revenue!

Since Amazon's rectification, cross-border sellers such as Youkeshu, Zebao and Tongtuo have been accelerating their multi-channel layout and have achieved certain results.

Recently, the 2021 performance forecast released by Youkeshu 's parent company Tianze Information showed that due to the impact of Amazon's account blocking wave, Tianze Information's annual net profit loss in 2021 exceeded 1.8 billion. Therefore, it chose to expand into other e-commerce platforms, and the results are currently significant.

Among them, the revenue on the Walmart platform was nearly 60 million , a year-on-year increase of 141%; after expanding business in emerging markets such as Latin America and Southeast Asia, the revenue on Shopee reached 200 million yuan in 2021 , accounting for 11% of Tianze Information's overall revenue from cross-border e-commerce business .

Zebao's parent company, Xinghui Holdings, lost more than 1.2 billion yuan in 2021. At present, Zebao is accelerating its multi-platform operation strategy and increasing its investment in third-party platforms such as eBay and Walmart as well as its own independent stations. Xinghui Holdings' financial report shows that from July to September 2021, Zebao's independent station sales revenue was 39.23 million yuan, an increase of 152% over the same period last year.

Tongtuo's parent company suffered a net loss of 520 million yuan. In the future, Tongtuo will increase its investment in other e-commerce platforms including eBay, Walmart, AliExpress, and independent websites.

Judging from the data of big sellers, choosing to expand into multiple platforms is undoubtedly one of the best options to reduce dependence on Amazon and spread risks. However, it is not ruled out that some sellers may feel that they have already achieved significant results on Amazon, and expanding into other platforms will increase costs or have little effect, so it is better to focus on Amazon.

Judging from the current situation, it may be the best choice for some sellers to devote all their energy to Amazon. In recent years, the epidemic has led to the rise of the stay-at-home economy, and a large number of sellers have flocked to the cross-border e-commerce market. In 2021 alone , more than 470,000 sellers joined Amazon, an average of 1,834 new sellers every day. In terms of market size, the proportion of global cross-border e-commerce sales has grown rapidly. Amazon, as the world's most visited e-commerce platform, is still worth deepening.

However, from a long-term development perspective, Amazon may not always be at its peak. As the number of sellers entering Amazon has increased dramatically, the phenomenon of low prices in the entire Amazon market has continued. In addition, in order to accelerate the process of seller compliance and spread the expenses, Amazon has been tightening its policies and raising a number of fees.

A report released earlier by Jungle Scout showed that more than half of Amazon sellers also sell products on platforms such as Walmart and Shopify. In addition, 30% of sellers sell on other platforms including eBay and Facebook.

This also indirectly confirms a fact that both new and old sellers are looking for new growth points in their sales by deploying on multiple platforms. However, for cross-border sellers, the premise of deploying on multiple platforms is to have a firm foothold on one platform, identify their own advantages, and then expand their advantages through sales on multiple platforms. Anker, as we are familiar with, started on Amazon. After the brand gained a certain degree of popularity, it began to gradually expand other sales channels and currently sells products on multiple platforms.

But returning to the basics, no matter which platform the seller chooses to work on, there is no "shortcut" to be found, and compliance operation is the kingly way. If you want to operate your store stably and for a long time, you can only do it with a white hat approach and go down to earth.

Amazon

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Billion-dollar sales