Official rumor refuted! Paton has not closed down and is still operating normally

Official rumor refuted! Paton has not closed down and is still operating normally

It is said that there must be something fishy before a big sale. This year, the biggest “fishy” may be that the big selling accounts have been blocked one after another.

The impact of the big sellers’ accounts being blocked one after another has not faded. Yesterday, the news that “Patoson closed down last night” was rampant.

Yesterday afternoon, Paton also quickly responded to the news of its account being blocked and the company's bankruptcy.

The news of Paton's bankruptcy spread like wildfire

From the night before yesterday to yesterday, the editor noticed that whether on social media or in some industry groups, a message was spreading like wildfire: "Paton has gone bankrupt."

Someone said: "I just received the news at around 8 o'clock that Patonson will go bankrupt tonight."

Some people also asked for confirmation cryptically: "Is the news on Wuhe Avenue around 8 o'clock last night true?"

After the news came out, some people said that the news was not credible, while others said that the store would not go bankrupt, but it was possible that the closure of the store would cause a shortage of funds and a large number of employees would leave. There were also many people who just wanted to watch the fun. There were many different opinions at the time.

"Don't Believe" Faction:

A: It's not just one or two stores. It's such a big company. Why are you talking nonsense?

B: I still receive their goods every day.

C: It is unlikely to go bankrupt, but closing the store may lead to cash flow problems and large-scale layoffs.

D It’s afternoon and the news hasn’t come out yet, so it won’t be distorted.

E: Fake news.

"Watching the fun" faction:

A: There will probably be a major layoff, so hurry up and post recruitment information.

B: Pour more and sell better.

“It’s time for capital to cool down”:

A: Cool down the capital.

B: There are risks in cross-border transactions, so be cautious when investing.

C: After this incident, the cross-border e-commerce industry is probably most disgusted with gambling, which is a complete lose-lose situation.

Paton: Current operations and cash flow are normal

In response to these news, Paton issued a relevant notice internally yesterday afternoon. Shortly thereafter, its general manager Liu Yongcheng published an open letter to all employees on the "Qianhai Paton " WeChat public account .

Liu Yongcheng mainly clarified the following points in this open letter titled "I love Patonson, and move forward with our Patonson~":

1. The company is actively promoting account recovery, and the overall process is currently optimistic.

Liu Yongcheng said that some of the company's Amazon accounts were blocked recently . After the incident, the company has been maintaining close communication with Amazon and actively promoting account recovery. The overall process is currently optimistic .

2. The company’s current operations are normal and our cash flow is also normal .

Liu Yongcheng said that Paton is actively recovering sales through various means, including the layout of the multi-brand strategy for key categories in this year's strategic plan, which is currently being carried out in a close and orderly manner. Therefore, the current operation is normal and the cash flow is also normal .

3. Suppliers, investors and other parties are actively cooperating to help solve the problem.

Liu Yongcheng said: " Our senior management team is also actively working on various response plans. Our suppliers and logistics providers are also actively cooperating with us to adjust our inventory and fully assist us in restoring sales as soon as possible. Our investors are also helping us to promote the resolution of the problem . "

4. Crisis is also an opportunity. This policy adjustment by Amazon will prompt Paton to realize the goal of a 10 billion brand matrix as soon as possible.

Liu Yongcheng firmly believes that every difficulty is a challenge, and every challenge contains a greater opportunity. " I believe we can seize the opportunity of Amazon's policy adjustment this time, continue to be driven by consumer insights and technical insights, insist on making good products, good operations, and good brands, and realize the goal of a 10 billion brand matrix as soon as possible. "

Relevant data show that in 2020, Paton achieved operating income of 4.9 billion yuan, a year-on-year increase of 43.88%; net profit of 300 million yuan, a year-on-year increase of 78.19%.

Judging from the above data, its revenue and net profit last year were still very considerable. The closure of the main brand account will definitely have an impact, but it will not cause it to go bankrupt. After all, Paton owns more than one brand and its sales platform is not just Amazon.

Employees expressed their gratitude and industry professionals gave their support

After Paton's open letter was released, people in the industry forwarded it to show their support, and the employees' responses to the open letter were also very heartwarming ↓↓

"I have worked for several companies, and I am more grateful to my former employer. In addition to gratitude, I also have a very special love for Paton. This kind of love sometimes makes me burst into tears when I think about it. Although my words are not important, I am willing to accompany you wholeheartedly on the road ahead and do my best."

"A blessing in disguise. I believe Paton can overcome difficulties, deepen its layout, and build a well-known Chinese brand for overseas markets . The Chinese people need their own brands too much. "

"Come on Patonson, this incident is just a small episode in the rapid development of the industry. No one should laugh at it. Maintain the healthy and stable development of the industry."

"We build roads through mountains and bridges over rivers. Every time we bend down, we do it to jump higher. Amazon is never calm , rain or shine, day or night. The rumor-mongers no longer expect bloody buns."

Many non-employees refuted the rumor when it was first reported. An insider said their team had not been reduced and no one from the senior management team had left. Some logistics companies also said they were receiving Paton's cargo every day.

As a leading seller in the cross-border e-commerce industry, Paton's every move has touched the hearts of people in the industry, from the account blocking incident, to the industry rumor spreading, and then to the rumor refutation. It can be seen from this that as representatives of China's intelligent manufacturing, these leading sellers are given high hopes by the industry, and the industry also believes in their ability to deal with risks.

On the day of the big sale, a 3C seller received 80,000 orders in one day

Because big sellers have been facing setbacks recently, the industry is not very peaceful, and some sellers have already felt the changes. For different echelons and small and medium-sized sellers, what is the current situation of what big sellers have encountered, and what lessons have you learned?

1. Is the traffic of big sellers divided? A 3C seller received 80,000 orders in one day

Some sellers said that on the day when a big seller encountered a "ban incident", a secondary seller in the 3C category received 80,000 orders. Some sellers have speculated that under this wave of "banning", the big sellers' traffic may have to be allocated to small and medium-sized sellers.

Therefore, for sellers in the same category who do not fake orders and have experience in compliance, blocking their accounts for a short period of time will give them more room to fight.

2. People are worried that Amazon's compliance operations will become increasingly strict

Although it is not said how much traffic can be divided from the big sellers, after all, they are all in the same industry, and it is not an overnight thing to have accounts blocked due to reviews. This time, more than 13 million Amazon fake order information was exposed, and the news that 75,000 seller accounts may be blocked has made many people panic and angry.

A seller said that there is really no way to fake orders. It is difficult to promote new products, but there is no good way. However, Amazon will settle the score later, so he is still worried.

3. Independent sites attract attention again

For a group of sellers who have been working on Amazon for a long time, even if they don’t fake orders, Amazon will still have all kinds of problems, such as a series of restrictions and verifications. The platform is too restrictive and there is no autonomy. One seller also considered that the platform’s repeated “bans” did make him want to find another way out.

This idea is not an isolated one. However, one seller also said that it is not easy to transform into an independent website. Cost, talent and operation are all problems.

Big Sell