54 Tongtuo stores were closed and more than 40 million funds were frozen!

Home appliances, clothing, home furnishings, 3C and other categories have fallen one after another, stores have been closed, and the glory is gone. According to statistics from the Shenzhen Cross-border E-commerce Association, in just a few months, more than 50,000 Chinese sellers have been closed on the Amazon platform. The industry has suffered a huge impact and sellers have suffered heavy losses...

Following the "incidents" of several super sellers in the industry , Huading Holdings announced yesterday that several of Tongtuo's Amazon stores were also blocked ...

DaMaitongtuo couldn't escape its fate, 54 stores were closed!

Yien.com learned that yesterday evening, Huading Holdings issued an announcement.

The announcement shows: Since mid-to-late July, stores involving multiple brands of Shenzhen Tongtuo Technology Co., Ltd., a wholly-owned subsidiary of Yiwu Huading Nylon Co., Ltd., have had their sales suspended by Amazon and their funds frozen.

As of the date of this announcement, Tongtuo Technology has been banned from selling and closed a total of 54 stores , and is suspected of freezing funds of RMB 41.43 million, accounting for 4.27% of the company's cash and cash equivalents at the end of 2020.

Earlier, there were reports that several of Tongtuo’s stores were closed by Amazon. Now, Tongtuo’s parent company has issued an announcement confirming the news. The top seller still did not escape the bad luck of this wave of account closures.

In the announcement, Huading Holdings stated that in response to the above-mentioned industry issues of cross-border e-commerce, Tongtuo Technology has filed a complaint with the Amazon platform, striving to resume sales of related brand stores and lift the fund freeze as soon as possible, and has hired professional lawyers to prepare for arbitration.

At the same time, the company will increase the sales share of other e-commerce platforms such as eBay, Walmart, AliExpress, Lazada, etc., increase investment in Tongtuo Technology's self-operated websites, and actively expand offline physical store channels in Europe and the United States.

According to the announcement, Amazon is the largest third-party sales platform of Tongtuo Technology. The sales of the above-mentioned affected stores accounted for about 18% of Tongtuo Technology's total sales from January to June 2021 , which will have a certain degree of adverse impact on the development of this year's cross-border e-commerce business. Stores on other platforms and self-operated websites of Tongtuo Technology were not affected and sales were normal. The production and operation of other business segments of the company and its subsidiaries are normal.

The editor learned that Tongtuo Technology was officially established in 2004. For many years, it has been focusing on the markets of developed countries in Europe and the United States. Its products cover multiple categories such as 3C electronics, photography and audio-visual, beauty and clothing, etc. Although Tongtuo Technology has been particularly low-key in recent years, as one of the four young masters of South China City, it still has an unshakable position in the cross-border circle.

At present, many stores of Tongtuo Technology have been closed, and another industry giant has suffered a heavy blow, which further proves the strength of Amazon's crackdown on illegal activities. Once you touch Amazon's bottom line, no one can escape the reckoning!

More than 500 million yuan of funds were occupied, Huading shares issued a "debt collection" announcement

This time, a large number of Tongtuo's Amazon stores were closed , which was a big blow to it. As Tongtuo's parent company , Huading shares will also be affected to a certain extent. In addition, Huading shares has encountered another "headache" problem recently , with more than 500 million yuan of funds being occupied.

Last week, Huading Co., Ltd. issued a "debt collection" announcement .

The announcement shows that after self-inspection by Yiwu Huading Nylon Co., Ltd., its controlling shareholder Sanding Holding Group Co., Ltd. (hereinafter referred to as "Sanding Holding") occupied a total of 578,500,009 yuan of the company's funds .

It is reported that this amount of funds has accounted for 12.67% of Huading's latest audited net assets , which is a relatively large amount. According to data, in the first quarter of 2021, Huading's revenue was approximately 2.369 billion yuan, a year-on-year increase of 26.27% .

However, as of the date of the announcement, Huading Holdings stated that it had not yet received the principal and interest of the funds occupied by the controlling shareholder. However, Sanding Holdings is also actively resolving the issue of returning the occupied funds .

At the same time, the announcement also showed that Huading Co., Ltd. had an illegal loan problem of 159 million yuan, which triggered a lawsuit and resulted in the company's own funds of 136,275,755.37 yuan being frozen.

At present, Huading Co., Ltd. has reached a settlement with the creditors of the loan, and all frozen funds have been unfrozen, but the creditors have not yet withdrawn the lawsuit.

It has been a turbulent time recently, and the cross-border e-commerce circle is destined to be in turmoil for a while. In addition to Tongtuo, another seller has encountered the crisis of having his account blocked.

6 accounts were hacked overnight , was it caused by account association?

Recently, a seller said that he had shut down 6 accounts in a row overnight , and all European sites including France, Germany, the Netherlands, Sweden, etc. were destroyed, which undoubtedly dealt a heavy blow to the seller.

According to an email released by Amazon, the seller was suspected of account association, which violated Amazon's relevant regulations. His account has been forcibly deactivated by Amazon and a large amount of funds in the account have also been frozen.

It is reported that this is not the first seller to report that his account was blocked due to association. Another seller also complained that his account was inexplicably linked and blocked on three sites, with hundreds of thousands of goods and funds in it. Another seller said that his European account, which he had worked hard to operate for several years, was also suspended after being linked. Previously, on the Amazon UK Seller Forum, hundreds of British sellers reported that their accounts were suspended by Amazon because they were linked to another unfamiliar account.

For sellers, if their accounts that they have worked hard to run for many years are blocked, the loss will be huge. Although Amazon said that the account can be unblocked through appeal, it is not easy to successfully appeal .

To successfully appeal, you must first understand the reasons for the account association, such as credit card, email, payment account, browser, product, etc. There are many reasons for the account to be associated, and sellers are sometimes unable to prevent it.

It is not easy to find out the reason for the association, and sellers also have to face problems such as long appeal time and high appeal fees . Previously, a British seller who was blocked due to account association said that after patiently waiting for 14 months, he still did not succeed in his appeal and did not know when his account would be restored . Another seller also said that it was very difficult to find a service provider to save his account, and the price he charged was exorbitant.

After their accounts were blocked, the sellers also fell into various crises. Some of the blocked sellers had to lay off and lay off employees in large numbers because they could not afford to pay their employees’ salaries. Some sellers were even forced to withdraw from the market.

Today's cross-border e-commerce market is changing, and Chinese sellers are in the most difficult stage. Under Amazon's heavy blow, a large number of Chinese sellers' accounts have been blocked, and years of hard work have gone to waste. Sellers have complained that it is difficult to find a way out.

In fact, it is not that it is difficult for Chinese sellers to find a way out, but that the direction of development is clear, that is, to operate in compliance. After a major overhaul, the cross-border e-commerce market will surely develop in a fair and compliant direction. It is no longer advisable to win by cheating with fake orders, reviews, and other opportunistic methods.

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