Annual sales of 600 million! Another popular brand was banned

As a popular cross-border e-commerce industry in 2020, the home furnishing industry seems to have not been greatly affected by Amazon's account suspension earthquake, and there are few rumors of account suspension. However, as a large category with a large number of Chinese sellers, how could it be immune?

In addition to the huge sales, many sellers have been hit by Amazon’s revenge, with millions of dollars in their accounts seized by Amazon. With the constant changes and logistics impacts of Amazon this year, many sellers have been forced to sell off their inventory at low prices to survive.

If one brand is blocked, other brands will also face the risk of being blocked.

Recently, many sellers have discovered that the "smugdesk" brand sold on Amazon by Henglin Home Furnishing (Henglin Home Furnishing Co., Ltd.), one of the largest office chair manufacturers and exporters in China, has suddenly disappeared. As one of the several brands sold by Henglin abroad, smugdesk's main products are ergonomic chairs and sofas and other seating products.

It is reported that some investors also asked Henglin Shares about Smugdesk through the platform. Henglin responded: "Because the Smugdesk brand was affected by the timing of Amazon's account closure, the Amazon store is currently blocked."

Henglin also stated that the company has set up a special working group to actively communicate and appeal with Amazon regarding the Smugdesk incident, and strive to eventually restore the sales of the site account. However, judging from the fact that all the banned big sellers have not yet restored their accounts, the restoration of the Smugdesk brand is likely to come to nothing.

However, in response to the closure of its brand, Henglin Home Furnishing also specifically mentioned that the closure of the brand account did not have a serious impact on the company. Sales of Henglin Home Furnishing's related products through other channels such as Walmart and independent websites are still normal. In addition, other home furnishing brands such as nouhaus and smugoffice are still on sale normally on the Amazon platform.

Since the second quarter of 2020, affected by the second wave of the epidemic, foreign countries have started to work from home as a normal mode, and the demand for office chairs and other products has increased significantly. As a leading domestic furniture developer and one of the largest office chair manufacturers and exporters in China, Henglin Home 's cross-border e-commerce business also achieved a leapfrog growth last year, directly driving the company's operating income and profit growth.

According to the 2020 annual report of Henglin Home Furnishing, its cross-border e-commerce business achieved revenue of 647.5 million yuan in 2020, a surge of 6481.53% compared with 2019. Its business share also soared from 0.34% in 2019 to 13.79%.

Therefore, as part of Henglin Home Furnishing's cross-border e-commerce business, it is conceivable that even if the impact of Smugdesk being blocked on Henglin Home Furnishing is not as serious as the blocking of other big-selling brands, it will definitely not be as small as Henglin has stated.

Combined with the feedback from sellers before, if one brand is blocked, other brands may also be implicated, so we will continue to pay attention to the safety of other brands of Henglin Home Furnishing . However, the blocking of Henglin Home Furnishing still serves as a wake-up call to other sellers, who should take it as a warning, refuse to violate regulations, and regulate operations!

Nearly 3 million account balances were deducted, Amazon took action against sellers again

The account suspension wave has not subsided yet, and Amazon has come to settle accounts again. Many sellers have said that their accounts have been deducted. One seller said that the store balance was several thousand US dollars the day before, but when he woke up the next morning, his account had turned into negative US$180,000. Another account of the seller was also deducted US$370,000. The total amount of money deducted from the two accounts is RMB 2.91 million.

It has to be said that if Amazon does not take action, it will be fine, but once it does, the cross-border circle will be shaken. This is not an isolated case. Later, many sellers said that their accounts were also deducted, and the highest deduction was 1.1 million US dollars.

Regarding the reason for the deduction, the seller's backend showed "other". Although Amazon did not explain the specific reason for this incident, there must be a reason for everything.

A seller revealed that Amazon's heavy blow this time is likely related to the previous product removal. Because these sellers whose money was deducted have one thing in common, that is, they have sold hot air combs, and previously, hot air combs were removed from Amazon on a large scale due to problems such as leakage protection.

"I thought I wouldn't be fined, but now it seems I was overthinking it," one seller said. It's not that Amazon won't deduct money, it's just that Amazon hasn't done anything yet. Previously, the U.S. Consumer Product Safety Commission filed a lawsuit against Amazon, demanding that Amazon deal with defective products on its platform. Now it seems that Amazon has begun to settle accounts.

For sellers, it is good if these deductions can be cleared. If they cannot be cleared, it will be a huge debt. Many sellers say they are overwhelmed and are ready to abandon their stores and run away. But this also reflects a practical problem that sellers need to pay attention to. Before selling products, they must completely solve the safety hazards of the products. Otherwise, if they are caught and heavily fined by Amazon, they will suffer the consequences.

The inventory of summer products has not been cleared, and the autumn warehouse explosion warning has arrived

" It's fall now, have you cleared out your summer product inventory? "

Facing this soul-searching question, I believe many sellers are having a headache. More than one seller has told me that it is already autumn and their summer product inventory has not been cleared out. Some sellers even said that they have not yet cleared out the goods from last year's Halloween!

But there are many sellers who are worse off than this! One seller said that his summer products have not yet arrived in Hong Kong! This statement also received a wave of "friendly comfort" from other sellers:

“It’s almost summer 2022.”

"You planned one year ahead of others and occupied the market first."

"My product is still under inspection after two months"

"Once the products are put into storage, it will be next summer, and we can have a big hit."

"It's okay. The United States is a vast country and not all seasons are the same (dog head)"

For many small and medium-sized sellers, inventory and cash flow are like a scale that is difficult to balance. Their goods are either in FBA or overseas warehouses, and of course some of them may be in the factory. The money they have worked hard to earn may eventually be used to pay for the goods.

A popular saying among sellers in the first half of this year is: "What you ate on Amazon last year, you have to spit out this year ." But the sad thing is that not everyone ate it last year, but will spit it out this year!

With the constant changes and logistics impact of Amazon this year, many sellers have been forced to sell off their inventory at low prices to survive. Although Amazon has also launched a so-called clearance plan, when asking seller friends around me, only a few have really adopted this plan, and most are just frantically clearing out their inventory at low prices.

In addition, sellers also need to pay attention. Due to the double blow of the epidemic and fire, Amazon FBA popular warehouses are overwhelmed, especially FTW1 and KRB4. The goods are blocked, making it difficult to pick up the goods, and it may even take months. Sellers need to communicate with freight forwarders in advance and inform consumers of the transportation time of the goods to avoid affecting product sales and reviews.

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