Another top-selling brand in Shenzhen has been banned!

The much-anticipated Black Friday on Amazon.com is here. Some sellers sold tens of thousands of orders a day, while others saw a sharp drop in sales. While cross-border sellers were concentrating on boosting Black Friday sales, a group of sellers have already missed out on this year’s big promotion.

On the eve of Black Friday, a wave of account suspensions seemed to be quietly unfolding, with some sellers’ accounts being affected, including a Shenzhen-based brand that was also in crisis. Another major seller, Global Easy Shopping, was also once again filed for bankruptcy liquidation.

Another brand was banned, and a big seller in Shenzhen was affected

Before Black Friday, an industry insider broke the news to Yien.com that a brand Mo*** under Shenzhen big seller *** was blocked. This happened on November 18.

Then, I searched for the brand on Amazon and found many similar products from other brands. I opened the Mo*** brand official website and found that many of its products were not available for sale.

The brand has a series of household products including air purifiers, humidifiers, projectors, knives, etc. At present, many air purifier products on the brand's official website are not available for sale, and humidifiers, projectors, knives, blankets and other products are also affected.

(Image source: Amazon)

I don’t know what the outcome will be after Mo*** is blocked, but sellers in the industry should always be vigilant against violations. When big-selling brands are blocked, other small and medium-sized sellers will also be affected.

Before preparing for Black Friday, some sellers’ accounts were blocked by Amazon. One seller said that after Black Friday started, his account was gone. Another seller said that his old cards were seized by Amazon.

Some of the sellers whose accounts were blocked received emails from Amazon, which pointed out that the sellers had illegally manipulated rankings and reviews. Currently, all links to the sellers’ stores have been removed, and the accounts have been excluded from the Black Friday promotion.

According to feedback from the affected sellers, the sellers whose accounts were blocked before Black Friday were most likely because of review violations. Some were affected by the "small card to brush good reviews" scam, while others were punished by Amazon for brushing good reviews in the past.

While Amazon is vigorously cracking down on review violations, there are still sellers who dare to defy the law. It may only be a matter of time before their accounts are blocked. After their accounts were blocked, sellers complained bitterly: "I was originally planning to work overtime on Black Friday, but now my account is gone, and I don't even have the chance to work overtime on Black Friday."

Sellers whose accounts have been blocked miss out on the Black Friday promotion. Now that Black Friday is here, how are the sellers who are still selling doing? Yesterday afternoon, sellers on the US site posted their Black Friday performances. Some sellers were too good. One seller posted a list of orders with 54,211 orders and sales of $2.71 million. Another seller received more than 1 million orders in one day and sales of $32.84 million.

However, the Black Friday performance of most sellers was not satisfactory. One seller said that he was disappointed when he opened his mobile phone in the morning to check the sales volume . Not only did he not have a surge in orders, but the sales volume was even worse than usual. Some sellers even began to doubt: "Has Black Friday really started?"

Compared to the cold Black Friday orders, the sellers whose accounts were blocked are the worst off. After their brands were blocked, some big sellers had their funds frozen, and it is difficult to get these funds back.

It is understood that previously, 54 stores of Tongtuo had their sales suspended by Amazon, and 41.43 million yuan of funds were frozen. Currently, Tongtuo Technology has frozen funds, and a total of 15.69 million yuan has been used to pay Amazon's warehousing and logistics costs, handle early consumer after-sales compensation and returns and refunds, etc.

In addition, another major retailer, Global Easy Shopping, is also having a hard time.

With a debt of more than 3 million, Global Easy Shopping was filed for bankruptcy again

Yesterday, Cross-Border Link issued an announcement that its subsidiary Global Easy Shopping received a notice that its creditors had applied for bankruptcy liquidation.

The announcement stated that Global Easybuy (hereinafter referred to as "Shenzhen Global"), a wholly-owned subsidiary of Cross-Border Link , recently received the " Notice " No. (2021) Yue 03 Bankruptcy Application 815 delivered by the Shenzhen Intermediate People's Court of Guangdong Province ( hereinafter referred to as the "Shenzhen Intermediate Court") . The creditor Shenzhen Android Micro Technology Co., Ltd. (hereinafter referred to as "Android Technology") applied to the Shenzhen Intermediate Court for bankruptcy liquidation of Shenzhen Global on the grounds that Shenzhen Global could not repay its due debts and obviously did not have the ability to repay.

If the Shenzhen Intermediate People's Court accepts the bankruptcy application, Shenzhen Global will enter bankruptcy proceedings. After entering bankruptcy proceedings, Cross-Border Link will lose control over it, and Shenzhen Global will no longer be included in the company's consolidated financial statements.

The reason for the bankruptcy application was that Shenzhen Global signed a "Purchase Framework Agreement" with Android Technology on April 1, 2019, stipulating that Shenzhen Global would place orders and purchase products from Android Technology through its supplier portal, and enter delivery, acceptance, settlement and other information through the website. Android Technology issued a "Account Period Confirmation" to Shenzhen Global on June 6, 2019 , confirming that the cooperation between the two parties would be settled according to a 60-day monthly account period.

Since the two parties signed the agreement, Shenzhen Global has sent hundreds of orders to Android Technology through its supplier portal to purchase products. As of October 22, 2020, Shenzhen Global has not paid 3.592 million yuan . Shenzhen Global has confirmed that it owes money but is unable to repay it. After repeated reminders, Shenzhen Global has not paid the money to Android Technology as agreed .

On November 24, 2021 , Shenzhen Global received the "Notice" No. (2021) Yue 03 Bankruptcy Application 815 delivered by the Shenzhen Intermediate People's Court . Android Technology believes that Shenzhen Global cannot repay its due debts and obviously does not have the ability to repay. Therefore, according to relevant legal provisions, it requested the Shenzhen Intermediate People's Court to conduct bankruptcy liquidation of the respondent.

Shenzhen Global has been in arrears with suppliers for a long time, and the debt crisis continues. At the beginning of this year, an employee of the company told the media that "Global Easy Shopping owes money to more than 3,000 suppliers, about 450 million yuan in arrears to suppliers, and about 300 million yuan to logistics, totaling more than 700 million yuan."

In addition to being filed for bankruptcy by Android Technology, another piece of information about Global Easy Shopping being filed for bankruptcy reorganization was also made public yesterday. The case number is ( 2021) Jin 01 Bankruptcy Application No. 14. The applicant is Shenzhen Zhongan Xinshi Technology Co., Ltd., and the court of jurisdiction is the Taiyuan Intermediate People's Court of Shanxi Province.

Earlier in June this year , Global Easy Shopping was declared bankrupt by the Industrial and Commercial Bank of China Shenzhen Nanshan Branch , causing an uproar in the industry.

According to Leju Finance, Global Easybuy has been involved in 372 legal cases since its establishment , of which 81.45% were defendants and 44.62% were disputes over sales contracts. In addition, there are 63 records of persons subject to execution, with a total amount of 20.8592 million yuan, and 4 records of bankruptcy reorganization.

Despite the constant disputes, Global Easy Shopping's business has been deteriorating. As of September 30, 2021, Global Easy Shopping's total assets were approximately 1.73 billion yuan, total liabilities were approximately 3.36 billion yuan, and net assets were -1.63 billion yuan. From January to September this year, Global Easy Shopping's operating income was approximately 340 million yuan, total profit was -210 million yuan, and net profit was -210 million yuan. (Not audited by an accounting firm)

Overall, the situation of Global Easy Shopping is not optimistic. If it goes bankrupt, Cross-Border Link will also be affected.

Cross-border Communication said that the company's current long-term equity investment in Global Easy Shopping is 3.213 billion yuan, debt is 266 million yuan, and the guarantee amount is 152 million yuan. If Shenzhen Global enters bankruptcy liquidation procedures, the long-term equity investment and debt are at risk of being unrecoverable, and the guarantee liability has not been eliminated. The company will make impairment provisions and recognize corresponding estimated liabilities in accordance with relevant regulations.

Amazon, big sale, Black Friday