Amazon.com has closed 340 online stores operated by one of the platform’s largest Chinese retailers in the first half of this year, as the US e-commerce giant intensifies its crackdown against paid reviews and other violations.
The action was taken against stores run by Shenzhen Youkeshu Technology Co. for allegedly violating Amazon’s rules, without providing any details, according to a filing this week by the merchant’s Shenzhen-listed parent Tiza Information Industry Corp.
The affected stores, the operations of which Amazon had either banned or frozen, made up 30 per cent of Youkeshu’s total retail presence on the platform, according to Tiza. It said more than 130 million yuan (US$20.08 million) of Youkeshu’s funds have been frozen and estimated the retailer’s first-half sales this year to be reduced by 40% to 60%
Tiza said in its filing that “rules on e-commerce platforms have been tightening, as rights infringement and review manipulation continued to increase”.
Youkeshu’s case marks the latest blow to the “made in China, sold on Amazon” community, comprising mainland retailers that have flocked to the US platform in a bid to reach international customers.
“Amazon can suspend sales or freeze the funds of stores for [selling] products with intellectual property risks and [over] customer complaints,” Tiza said in its filing. It said more than 130 million yuan (US$20.08 million) of Youkeshu’s funds have already been blocked by Amazon.
Privately held Youkeshu has been involved in cross-border e-commerce since 2008, selling a wide range of products including electronic gadgets, toys and outdoors equipment on various online platforms, according to the company’s website.
