Account recovery is nowhere in sight! Shenzhen sellers are looking for new outlets

Under this wave of Amazon account bans, some big sellers saw that their account recovery was nowhere in sight and turned to independent sites, applying for millions of yuan in subsidies; some sellers suffered losses of over 10 million yuan and also vigorously developed cross-border e-commerce businesses ...

The recovery of the blocked big seller account is nowhere in sight, and I have applied for independent station support funds

Amazon’s most stringent account suspension wave has lasted for more than three months since the beginning of the storm, and only a few of the sellers whose accounts were suspended in the early stage have been restored. Big sellers have fallen into a food shortage crisis, and small sellers have also frequently sent messages about changing careers.

As a major cross-border e-commerce hub , Shenzhen ’s policy of supporting independent websites has allowed many sellers to see a glimmer of hope amid the gloom of account suspension.

According to industry sources, Zebao's parent company, Xinghui Co., Ltd., is currently applying for special support funds for independent sites from the Shenzhen Commerce Bureau , but whether Xinghui Co., Ltd. can finally get official support remains to be seen. As things stand, Shenzhen's policy of supporting big sellers and independent sites is icing on the cake for the development of big sellers .

It should be noted that in mid-June, when Xinghui Holdings announced that some stores under its three Zebao brands were suspended from selling by Amazon, it said: "It is expected that the recovery period will be around 1-2 months." However, the fact is that more than two months have passed since the account was blocked, and the platform appeal has still been fruitless, and the account recovery is still a long way off.

Last night, the semi-annual report of Xinghui Shares, the parent company of Zebao, was also released. Due to the impact of Amazon's account ban, the revenue and net profit attributable to the parent company in the first half of this year showed a downward trend, and the net profit directly decreased by 30 million! Faced with this situation, Xinghui Shares chose an independent website to save its cross-border e-commerce business to a certain extent.

Seeing that the restoration of Amazon accounts is far away, most sellers have begun to expand their business to independent websites . In response to investors' questions about "why not consider operating an independent website", Shenzhen seller Yibai Network, which has always operated in compliance, said that its independent website is in the early stage of exploration and research. In fact, with the wave of Amazon account suspensions, more and more sellers have realized that they cannot put all their eggs in one basket.

As a major gathering place for the domestic cross-border e-commerce industry, although Shenzhen stated that it would not interfere in the disputes between Chinese sellers and Amazon, it quietly extended the application time for special support funds for independent sites: the online application acceptance time was extended to 18:00 on August 30, 2021, and the paper material acceptance time was extended to 17:45 on August 31, 2021.

An old seller who started to run an independent website in 2012 said that he was deeply envious of the news that Shenzhen strongly supported independent websites. The operating logic of independent websites and Amazon is actually very similar, but there are many ways to play, which requires the seller team to learn and explore on their own.

Under the wave of account bans on the Amazon platform, a large number of sellers are indeed planning to choose new sales channels such as building their own independent websites, and the policy support has made many sellers very tempted. However, for sellers, policy support can only be regarded as auxiliary, and more depends on the sellers' own efforts and development.

Although independent sites are currently a blue ocean market with great potential, sellers still need to remain cautious and operate in a healthy manner. After all, today's cross-border e-commerce industry has entered an era of real competition in products, supply chains, and operational capabilities.

Huakai Creative suffered losses of over 10 million yuan, and its subsidiary Yibai Network was not greatly affected by the account suspension

Amid Amazon’s account blocking wave, most sellers are gradually submitting their results for the first half of the year. As for how big of a blow this account blocking wave has had on the sellers, we can get a glimpse of it from these results.

Huakai Creative, the parent company of Yibai Network, recently released its semi-annual report for 2021. The report data showed that Huakai Creative's revenue was 77.03 million yuan, an increase of 47.80% year-on-year compared with 52.12 million yuan in the same period of 2020. Its net profit attributable to shareholders of the listed company was -22.13 million yuan , a year-on-year decrease of 72.83% compared with -12.81 million yuan in the same period of 2020 .

As for the current status of its subsidiary Yibai Network, which completed asset transfer procedures and related industrial and commercial change registrations in June this year, Huakai Creative said that since the income from such accounts accounts for less than one thousandth of Yibai Network, only a few accounts are at risk of violations, and its performance has not been significantly affected by Amazon's account blocking wave . As for Amazon's recent requirement for sellers to purchase insurance, the impact is even smaller.

In addition, since Yibai Network operates in a multi-channel mode, with a large number of overseas warehouses and mainly relying on air transport and dedicated lines, the impact of rising ocean freight costs on it is within a controllable range. Overall, the changes in the cross-border e-commerce environment this year have only caused a small ripple for Yibai Network.

After acquiring Yibai Network, Huakai Creative also put forward new requirements, requiring that the net profit attributable to the parent company's owners after deducting non-recurring gains and losses in the consolidated financial statements of Yibai Network from 2019 to 2023 should be no less than RMB 141 million, RMB 170 million, RMB 204 million, RMB 251 million, and RMB 290 million, respectively. Relevant data show that in 2019 and 2020 , Yibai Network has exceeded its promised performance.

Regarding the company's future development, Huakai Creative said that it is undergoing a strategic transformation, shrinking its original main business (comprehensive services provided for exhibition halls, exhibition rooms, etc.), and cutting some projects with longer payment cycles, in order to fully support its subsidiary Yibai Network and vigorously develop cross-border e-commerce export business.

Products worth thousands of yuan were mistakenly judged to be destroyed, but Amazon refused to compensate!

Recently, many friends have triggered dangerous goods audits. Dangerous goods audits are not scary, but what is scary is that Amazon misjudged the product and destroyed it.

Recently, some sellers reported that their products with a unit price of thousands of yuan triggered Amazon's dangerous goods review when they were put into storage. They thought that everything would return to normal after the review was passed, but what they finally got was that the products had been destroyed!

It is reported that the product is an electronic product and the reason for destruction was that the seller's product was prohibited by Amazon, so it was eventually destroyed and no compensation could be applied for.

The problem is that the product was available in more than one color when it was put into storage, but some of them were already sold, while others were eventually destroyed. The seller has been communicating with Amazon customer service and applying for compensation, but the communication has been fruitless.

Although Amazon officials have stated that there is a certain degree of uncertainty in the scope of dangerous goods review, products such as electronic products, spray paints and cosmetics are likely to be reviewed.

But what happened to this seller may largely be a misjudgment on Amazon's part.

Some sellers expressed their support for the seller's experience and suggested that the seller open more cases to contact customer service. However, it should be noted that opening too many cases will cause the account to be blocked. After all, there are many people who have been blocked for opening cases too frequently. Therefore, it is best to change several team email addresses for communication.

For sellers of electronic products, spray paints, cosmetics and other categories, it is recommended to conduct a dangerous goods review of the products and fill in the electrical information in advance. It is best to provide relevant information during the listing creation process to avoid misjudgment by Amazon and cause unnecessary losses.

I believe that all seller friends have also seen the development of cross-border e-commerce in recent years. Compliance has become the general trend. Perhaps some sellers are still using black technology to do Amazon, but judging from the intensity of Amazon's rectification, all kinds of outrageous operations will definitely be caught and severely punished!

Dear friends, please remember that the barbaric era of cross-border e-commerce is over. Whether you want to continue to delve deeper into Amazon or expand your independent site, only by operating in compliance and working hard can you go further.

Big Sell

Independent website

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