time: 12:00 - 5:00 pm sunday
relates to Amazon Hits Chinese Sellers With Crackdown on Fake Reviews
Obscure Chinese makers of everything from wireless headphones to kitchen mops that wanted to crack the U.S. market for several years have turned to the world's biggest e-commerce company for help. They use an Amazon.com Inc. program called Fulfillment by Amazon (FBA) that allows third-party merchants to store their goods in its warehouses and let the U.S. company handle delivery, returns, and exchanges. To get attention on Amazon's sprawling marketplace, many Chinese sellers offer freebies or even cash to consumers willing to write favorable product reviews. Amazon once allowed such incentives in exchange for reviews to help introduce products to customers. But it began discouraging the practice in 2016, realizing freebies compromised the integrity of customer reviews. Many merchants ignored the new rules by recruiting shoppers on Facebook and reimbursing them via PayPal to elude Amazon's detection, and the problem persisted.
A delivery staff of Amazon.cn sends goods to a customer.
Photographer: Zhang Peng/Getty Images
Guangdong SACA Precision Manufacturing has been trying to persuade Amazon to rescind a June decision to suspend its electronics brands RAVPower and VAVA, which make items like power banks, baby monitors, and electronics accessories. In a stock exchange filing in June, the Chinese company cited violation of rules regarding gift cards as a possible reason for the suspension. But the outlook is grim, according to a person familiar with the matter who isn't authorized to speak with the media. For now, Guangdong SACA is trying to sell via its own websites, where it's dropped prices by as much as 60%, the person says.
Amazon's terms of service don't allow marketplace retailers to sue, though they can take the company to an arbitration hearing. Sellers are unlikely to make any headway when they clearly violated the rules, according to Cherish Liu, founder of Red Flag Solutions, a Shenzhen-based law firm that works with Chinese retailers. "It's against Amazon's policy, and the sellers behaved incorrectly," she says. "It's very hard to convince Amazon to reinstate [a] seller's account."
Photographer: Melissa Lyttle/Bloomberg
Candy Wu, a 27-year-old manager for a retailer based in Shenzhen that sold items such as hand sanitizers and cleaning supplies on Amazon, is suddenly unemployed. Her company, which Wu isn't authorized to name, abruptly ceased operation in mid-August after landing on Amazon's blacklist for allegedly manipulating customer reviews.
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