"Amazon has almost banned all cross-border e-commerce in China?" Netizens' comments angered sellers

Recently, reports on account blocking have been overwhelming, and Amazon has been pushed to the forefront. Over the weekend, a netizen said that "Amazon in the United States has almost blocked all cross-border e-commerce in China" and defined cross-border e-commerce as "the most uncertain entrepreneurial industry", which angered many sellers in the industry.

This statement is too exaggerated, but Amazon sellers are indeed facing some business challenges. Amazon has made a comprehensive interpretation of the new insurance regulations that came into effect in September, and has answered questions such as "Do I need to buy it only if I receive it by email?" On the other hand, FBA has been severely delayed and return orders have surged. The much-watched return policy for Amazon self-delivery has also officially come into effect today.

Netizens said, "Amazon in the United States has almost blocked all cross-border e-commerce in China"

Over the weekend, a Weibo post by a netizen caused an uproar among Amazon sellers, drawing ridicule and refutation from sellers.

The netizen said: "Amazon in the United States has almost banned all the top Chinese cross-border e-commerce companies, and the top five cross-border e-commerce companies have all gone bankrupt (the top five Chinese cross-border e-commerce companies). Many cross-border e-commerce bosses have jumped off buildings. Cross-border e-commerce has become the most uncertain entrepreneurial industry."

Apart from the incoherent writing, it is obvious that this netizen does not understand the cause and effect of the account suspension incident. The top cross-border e-commerce companies do not equal all cross-border e-commerce companies. The five tigers have not closed down, and it is nonsense that many industry bosses have jumped off buildings. It is too hasty to make a conclusion based on a few unfounded words and attribute the cross-border e-commerce that has outperformed the industry as "the most hopeless entrepreneurial industry."

The seller refuted fiercely in the comment section:

"What are you fighting against? It's obviously because of cashback for good reviews, good review cards, unfair competition, and the trend of fake orders from China that led to the closure of the store. There are quite a few domestic Amazon merchants who give away products for free just to get good reviews."

"As someone who works for Amazon, the platform has always banned fake orders, but Chinese sellers have been finding ways to do so. This heavy-handed crackdown is also to balance the ecosystem, otherwise sellers who don't fake orders will never be able to compete."

"You are the one who faked orders and disrupted market rules and was blocked. You can't blame others. They say it's persecuting Chinese companies. But Anker and UGREEN are both Chinese brands. Aren't they still selling well?"

"You spread rumors and fooled many laymen."

The Amazon account suspension incident has gone viral, and the frequent news may cause unwarranted speculation from the outside world. Last Friday, the Shenzhen Municipal Bureau of Commerce held a symposium for cross-border e-commerce companies in Futian District to listen to reports on the recent "store suspension" incident of Shenzhen Amazon sellers , and many mainstream media followed up with reports.

At present, Amazon sellers are also facing new business challenges.

Do you need to buy it only if you receive it in the mail? Amazon fully answers questions about insurance requirements

Last week, Amazon released a notice to update insurance requirements, but a mere notice cannot answer all sellers’ questions. Over the weekend, Amazon officially explained the insurance policy update and responded to questions raised by sellers, such as “Do only sellers who receive emails need to purchase it?” The editor summarizes them as follows:

1. Is commercial liability insurance mandatory for Amazon US?

Yes. If the purchase threshold has been reached, and if Amazon finds that you have not purchased this insurance within the applicable claim period or have not submitted qualified insurance certificates in a timely manner, Amazon may take measures such as restricting your sales of certain categories of products or even suspending your account until you provide proof of insurance. Please handle it in a timely manner, otherwise it will affect the normal use of your account.

2. In what circumstances is insurance necessary?

On Amazon US, you will need to provide proof of insurance if any of the following situations occur:

1) Before September 1, 2021, the seller achieved total sales revenue of more than US$10,000 per month on Amazon.com for three consecutive months;

2) After September 1, 2021, the seller's total monthly sales revenue on Amazon.com exceeds US$10,000 in any month in history;

3) Sales revenue does not exceed $10,000, but Amazon requires proof of insurance.

3. Do all categories require insurance?

Regardless of the product category, insurance is required as long as the above three conditions are met .

4. If I have reached the sales target but have not received any email notification, do I need to purchase insurance?

need.

5. Do both FBM and FBA sellers need to purchase insurance?

It has nothing to do with the shipping method.

6. Is a European site necessary?

Under the Amazon Services Business Solutions Agreement, you must purchase commercial liability insurance for all marketplaces you sell on. Currently, Amazon only enforces this requirement for the US marketplace.

7. Can I choose my own insurance company?

Yes. If you do not currently have business liability insurance, you can choose any insurance provider that meets Amazon's requirements or select one from a network of trusted insurance providers identified by Amazon.

8. Does the insurance need to be purchased before September 1st?

If you meet the threshold, you are obligated to purchase and maintain insurance within 30 days.

In recent years, product safety accidents have occurred from time to time, and Amazon has implemented insurance policies to provide certain protection for both buyers and sellers. For sellers, this is undoubtedly another operating cost.

In addition, the recent epidemic situation in the United States is severe, logistics and distribution are delayed, and large-scale delays in FBA have led to a surge in seller returns.

FBA has massively delayed seller returns , and sellers have seen a surge in returns. Are Americans taking advantage of the loophole to get something for free?

At present, many sellers have reported that FBA delivery has been delayed recently. One seller said that due to the delay in delivery, a large number of orders were returned. This is why many people see that their return orders are marked as completed and cannot be returned.

The seller said: "I have communicated with the customer and asked him to send me the entire logistics status. It clearly states that the order is delayed and cannot be delivered, and he will get a refund later. I foolishly thought it was a product problem before. Now many people in the United States are taking advantage of the delayed delivery loophole to get something for free. After he applied for a refund, Amazon still sent the goods to him."

Sellers have to pay for returns caused by delayed delivery? Sellers question: "After the return, not only did we lose the goods, but we still have to pay the FBA fees?"

Other sellers have had the same experience. "Several orders were delayed in delivery, but the refunds were not returned. There was no compensation record in the backend. An old customer said that he had not received the order a week after placing it, and it showed that he could apply for a refund due to delivery delay." Another colleague reported.

In order to provide customers with a good shopping experience, Amazon makes returns easy for buyers. The video on YouTube shows that as long as there is a delay in FBA delivery, buyers can apply for a refund by filling in any reason, and the application is basically successful. As a result, the buyer gets the refund and the goods are also received. It's easy and free, and Amazon customer service will not ask any more questions.

FBA delivery is delayed, and the self-delivery policy is also being tightened. Today, the self-delivery return policy that sellers are more resistant to will officially take effect.

Amazon's announcement reminds sellers that starting August 16, 2021, as part of our "Sell on Amazon" policy, Amazon will automatically authorize US return requests that comply with the return policy, including items for which sellers submit requests to exempt SKUs from the prepaid return label program. For SKU returns submitted by sellers exempt from the prepaid return label program, sellers will continue to have the option to upload merchant-paid labels. Return requests that exceed policy or category exemptions will be manually authorized.

For international sellers’ self-fulfilled returns, sellers need to provide one of the following return options:

No Return Refund: Provide a full refund without requiring a return;

Offer domestic return options: Provide a local return address in the buyer’s country ;

Provide prepaid international return shipping: Provide prepaid return mailing labels for return requests in the markets where you sell.

Similarly, starting August 16, 2021, for international seller-fulfilled returns that do not comply with the above policies, Amazon may refund the buyer on behalf of the seller and credit the seller's account.

The self-delivery policy has caused many sellers to complain. One seller said bluntly: "What a useless policy, I think I will stop selling internationally here."

Adding together factors such as account blocking, insurance, and returns, people who cross borders have lamented: It’s really difficult to do business on Amazon this year!

Amazon, sellers, netizens