The number of lawsuits has tripled! Amazon is cracking down on sellers of counterfeit goods in China and the EU

Recently, Amazon released its 2021 Brand Protection Report, stating that thanks to the strict screening of its review procedures, Amazon prevented the creation of more than 2.5 million fake accounts in 2021 .

In addition, Amazon has blocked 4 billion bad product listings and removed more than 3 million counterfeit products. This action reduced the number of intellectual property infringement complaints on Amazon in 2021 ( down 25% from 2020 ) and steadily increased the number of active brands on the site ( currently over 700,000 active brands, an increase of 40% from the previous year ) .

Counterfeit and shoddy products have always been a "chronic disease" that is difficult to cure for major e-commerce platforms , and Amazon is also facing this headache . In order to prevent the problem from becoming irreversible, Amazon has been making every effort to increase its crackdown and strongly supports the US Online Retail Act ( INFORM Act), which requires e-commerce platforms to collect sellers ' financial information and disclose some of the information to consumers.

Amazon has a zero-tolerance attitude towards not only counterfeit and shoddy products, but also speculation and reselling. Recently, Amazon launched a new program to prevent the rush to buy high-demand, low-supply products such as game consoles and then sell them at a higher price . The program is designed to prevent inventory shortages and price fraud caused by artificial rush buying (especially using order grabbing software) .

In 2021 , Amazon invested more than $900 million in hiring technical experts and building software security to combat fraud on the website, and sued or investigated more than 600 sellers in the United States, China and other places . Among them, the number of sued sellers from China and the European Union increased by 300% compared with the previous year.

According to Marketplace Pulse, the sales share of top Chinese sellers on Amazon has been declining since the end of 2020, from about 48% at the end of 2020 to about 42% in May this year. This year, 55% of Amazon's US best-selling products come from local US sellers, up from 48% in November 2020.

Industry insiders believe that the supply chain chaos caused by the epidemic and the vigorous account suspension last year have made Chinese sellers disappointed with Amazon . Even China's top sellers such as Zebao and Youkeshu have suffered heavy losses from Amazon and lost a lot of profits. Earlier reports said that a large number of Chinese sellers are withdrawing from Amazon.

Recently, the US government believes that Amazon is suspected of monopolizing the market and favoring its own services on its e-commerce platform , which puts competitors and even third-party sellers at a disadvantage. In response, Amazon executives lobbied sellers on their forum last week to jointly oppose the bill, but were rejected by most sellers on the grounds that Amazon did infringe on their interests.

Amazon's pursuit of American sellers and its own services, as well as its strict precautions against Chinese sellers, are squeezing the living space of Chinese sellers. To break out of the siege, Chinese sellers not only need to keep up with product trends, but also pay attention to compliance operations.

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