[Crew Review] More China-based sellers suspended

Out of Sight

Chinese Sellers and Fake Reviews

They have good products. Some of them were even top sellers. But they still gambled by using fake reviews.

Now, almost 300 China-based seller accounts are suspended by Amazon, following the footsteps of popular brands like Mpow and Aukey.

Some of these suspended brands even carry best-selling products, such as Fairwill’s electric toothbrush that has been featured in popular publications before.

We reported two weeks ago about how some FBA rollups are eyeing Chinese brands. They may have to be more careful now with their acquisitions.

With stricter government scrutiny into fake reviews on Amazon, we’re expecting an account suspension sweep very soon—and it won’t be limited to Chinese sellers.

More About China

Despite fake reviews and counterfeit issues, China-based sellers still dominate Amazon.

According to Marketplace Pulse, about 50 percent of Amazon sellers are from China. The top 5 marketplaces with the highest percentage are:

• Amazon.es
• Amazon.fr
• Amazon.it
• Amazon.ca
• Amazon.com.mx

Amazon.com comes in sixth place with 44 percent made up of China-based sellers.

It’s hardly surprising for a country that’s known as the world’s factory. But they’re not only dominating in terms of numbers. According to our study, they also make up a majority of the top sellers.

Measuring Success

Amazon uses a lot of metrics to determine whether sellers are up to their standards when it comes to customer service.

We’re sure some metrics are more important than others, but which ones should we pay more attention to exactly?

Amazon has given an indirect answer—by modifying the Account Health page.

If you’re wondering why you can’t see some of the metrics that were there before, here’s what the FAQ page has to say:

“To increase visibility into the metrics that may affect your ability to sell, we’ve removed various metrics from the Account Health experience. Amazon does not take action on these metrics.”

So revisit the Account Health page if you haven’t done so recently. What remains are the metrics that you should really care about.

Give Up, Give In

Becoming an Amazon vendor has its advantages. Starting with the obvious, it drives more business into your company. It can also result in increased stock prices.

But it usually comes with a catch: you have to give stock warrants to Amazon, i.e., give up equity.

This arrangement is not uncommon for Amazon vendors. But it doesn’t need an expert to see that this can lead to the company gaining more control, increasing its power in the industry.

We have yet to see if this will be scrutinized by the FTC along with other antitrust issues Amazon is facing. If that happens, Andy Jassy will have more on his plate aside from his promotion celebration cake.

Mini Reviews

Internet Famous. Here’s the Amazon page that showcases the latest viral products. It’s great for both shopping and product research.

PSPs. In case you forgot, Amazon reminds about the halt of disbursements to sellers who are not using payment service providers that are part of their new PSP Program.

Oops. Amazon had to issue an apology to a fishmonger after they sent a letter asking to take down the term “Prime Day” from his blackboards. Apparently, nobody told them the term has been used for years in the fish-selling trade, even before Jeff Bezos was born.