It can be said that starting from April 2021, the cross-border theme has changed to "title". These two words are really the "Sword of Damocles" hanging over the heads of sellers.

By 2022, sellers thought that the wave of titles was over and everything was back on track, but the turning point appeared again, and another wave of "industry slaughter" was being staged.

1

Reappearing the title tide

Tens of thousands of accounts in Pakistan blocked

On May 21, 2021, Amazon officially opened a third-party platform for Pakistani sellers to sell their products. According to a Marketplace Pulse report, in 2022, Pakistan has become the third largest seller country after the United States and China, occupying a prominent position in the Amazon seller ranks.

But recently, Amazon banned more than 13,000 Pakistani seller accounts. As soon as the incident came out, there was another noisy scene in the circle. The reason for the ban is that these sellers are suspected of unfair competition and have taken a variety of fraudulent acts.

Although sellers have been complaining that the brutal growth period of the Amazon platform has passed, Amazon has repeatedly used a series of measures such as large-scale bans to warn sellers that some bottom lines cannot be stepped on.

The seller who was banned this time was also sanctioned by the official Amazon due to the vague market rules, the fluke mentality of conformity, and the rapid development.

Amazon has marked the regions where these sellers are located as "fraud red zones" and locked the IPs in these regions . Currently, sellers in this region can only log in to their accounts by changing their IPs elsewhere. It is understood that these banned sellers are concentrated in the two cities of MianChannu and Sahiwal in Punjab, Pakistan .

2

High voltage red wire

Don't try on the edge of violation

As we all know, Amazon's platform rules are numerous, complex, and unpredictable. Sellers who rely on Amazon to conduct business operate their stores cautiously, for fear of violating the platform’s rules and being banned. Once the store is banned, the traffic, praise, and weight accumulated by the seller's store will be wasted.

Regarding this wave of titles, the editor has sorted out the following reasons. I hope that all sellers can operate in compliance with the regulations when operating their platform accounts, win with quality, and don’t use opportunistic tricks.

Provide false logistics information, false tracking

The Amazon platform has a stipulation: the platform gives the seller 15-20 days of delivery time, and the amount is credited to the seller's account within 14 days.

After receiving the buyer's product order, the illegal seller provides false product logistics information but does not actually deliver the product. Using this method to deceive the platform and deceive the buyer, the estimated delivery time provided to the consumer is longer than Amazon's The 14-day payment is counted into the seller's account. Taking advantage of this time difference, the seller gets the money in advance, but the buyer can't wait for his product.

Amazon Pakistani sellers have reportedly been defrauded of thousands of dollars by using this method.

Resale arbitrage through other channels

After the violating seller receives the buyer's product order on the Amazon platform, it does not ship through the Amazon platform, but the seller uses the buyer's receipt after purchasing the product through another channel (Walmart, Sam's Club or other suppliers). address to ship it to the actual buyer.

This model is called the "resale arbitrage" model. While disrupting the Amazon sales order, it will also lead to huge losses for the original brand.

Buy prepaid cards and evade detection

Breaching sellers open accounts on dark web sites to buy hacked prepaid cards from the site for $100-$200 with the necessary information: card number, expiration date, and card verification value.

Sellers use these cards to buy and resell prepaid gift cards, and in this way, avoid detection.

sales tax fraud

The illegal sellers find a US company with public information to register an Amazon store, and then create an Amazon Business Prime buyer account in their own name to buy goods for other Amazon buyers who need to place an order.

This is because Amazon offers a 30-day free trial for Amazon Business Prime, and after creating a Business Prime account in the name of a U.S. corporate legal entity, sellers can use the company's EIN to exempt sales tax on purchases.

The illegal seller will cancel the account 1-3 days before the tax deduction deadline, and then re-register another account to perform the same operation. By the end of the year, the US company with the registered information will bear all the taxes, and the seller will not have any influences.

Sellers who operate the above violations must not take chances to test the waters, Amazon can seal 13,000 Pakistani accounts, and they will not let you go!

So don't think that you are very smart and can use platform bugs to earn improper benefits. You must know that to make money on other people's platforms, you must follow the rules of the platform, otherwise it will only be yourself.

Finally, compliance management is the correct solution for the sustainable development of cross-border e-commerce. With the continuous improvement of supervision and the development of compliance trends, all enterprises and individuals must strengthen their own risk prevention capabilities when going overseas. You may be the next recruit after illegal operations.

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