Amazon closes 340 Chinese company online stores
Stores operated by Shenzhen Youkeshu Technology were closed for alleged violation of Amazon rules.
Amazon closed 340 online stores operated by one of the platform's biggest Chinese retailers in the first half of this year, while the US e-commerce giant intensifies its crackdown on paid reviews and other violations.
The lawsuit was filed against stores operated by Shenzhen Youkeshu Technology Co. for alleged violation of Amazon rules, without providing any details, according to a file by parent company Tiza Information Corp.
The affected stores, the operations that Amazon banned or froze, made up 30% of Youkeshu's total retail presence on the platform, according to Tiza.
She said more than 130 million yuan ($20.08 million) of Youkeshu's funds had been frozen and estimated that its sales in the first half of this year should be reduced by 40 to 60 percent.
Tiza said in its file that "rules on e-commerce platforms have been tightened as rights infringement and review handling continued to increase."
Youkeshu's case marks the latest blow to the “Made in China, sold on Amazon” community, including mainland Chinese retailers that have flocked to the US platform in an attempt to reach international customers.
While Youkeshu also operates stores on other sites including eBay, Wish and Aliexpress, the company sharpened its focus on Amazon last year with "strategic inventory" for the platform, Tiza said.
Source: China Morning Post
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