Today’s show is a special edition, an experiment. As you may know, Mike Michelini is back in Shenzhen and back having meetups and gatherings (can’t help himself).
During the meetup with international and Chinese sellers, we decided it would make an amazing and unique GFA podcast to talk to the Chinese sellers and get their insight on what this crackdown on Amazon accounts has been like.
We worked hard to add captions and dub English over those who spoke in Chinese for our international audience.
We also kept the original Chinese version for those who prefer to listen to that with captions only.
Chinese Version with Captions:
Questions asked of these special guests:
How do you feel about selling on Amazon in 2021?
What do you think about the crackdown on seller accounts this year?
How has the Chinese seller community been reacting?
What is the future of selling on Amazon and e-commerce in your opinion?
Thanks to our special guests!
People / Companies / Resources Mentioned in this Episode
√ Miss Lee, Chinese seller 李小姐，中国卖家
√ Paul Gao，Founder of Globalebuy Supply Chain 高旋球, 环球易达供应链创始人
√ David Dai, Partner of Yihe Electronic. 戴先生，弈和电子合伙人
√ Alex Huang , Amazon Seller 黄先生，亚马逊卖家
√ Alpha Liu, Custom Manager of Lingxing ERP 刘春阳，领星ERP 大客户经理
√ This Meetup Event Sponsor 本次活动赞助商领星ERP – www.lingxing.com
√ Visit our GFA partner – Mercury – for US banking solutons for your ecommerce businesss
Episode Length 21:18
Thank you to our special guests for being on the show, and thank you everybody for listening in.
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[00:00:00] So how do Chinese Amazon sellers feel today, 2021 – account shutdowns, a lot of other stress.
We’ll talk about it today at Global from Asia podcast. Let’s tune in. So Mike here, Mike Michelini, host of Global From Asia.
我们今天在GFA播客上好好讨论一下这个话题。欢迎大家来收听。这里是Mike Mike Michelini，来自Global From Asia节目的主持人。
I’m taking a walk in the courtyard here in Futian in Shenzhen. Full circle, for some of you that don’t know,
I started the podcast here, started a lot of business here and have been back here now, it’s been over a month.
[00:00:27] And we trying something new in today’s show. Today, we did a Global from Asia meetup with Haimaohui and the amazing Chinese seller community just this September, 2021.
And, I brought this camera here with me. We’re gonna do this in video and audio format. So you might be listening to this on iTunes or other audio players.
[00:00:46] So you might not see me, but hopefully you can hear me well. We’re talking to them after the meet up.
I just grabbed my camera, talked to about four or five different sellers in English and Chinese, if they were not comfortable or able to speak in English.
And we did a lot of work on this one, took a little bit extra time, but I think it’s a little bit extra valuable.
[00:01:05] So let’s tune in. We’re going to put captions, we’re going to dub over English for those that spoke in Chinese for the international community.
And let’s really hear what they have to say.
[00:01:31] Shout out to our sponsor mercury.com, amazing, totally free, easy, online only US bank account for connecting your seller account, Amazon and your PayPal, other online and traditional ways of making payments.
It’s a great choice. And we also have a little bit of bonus for you and for us at globalfromasia.com/mercury. Thanks again for sponsoring and supporting the show mercury.
What’s your name?
My name is Lee. Nice to meet you.
Thanks for coming today.Thank you.Nice to meet you.
So we’re talking about the market of Amazon today in 2021, you said you used to be an Amazon seller, but now you sell on your own website?
Yes, I gave up on Amazon. I’m on Shopify now. I have been doing Shopify for one year now.
Because there are a lot of Amazon sellers and a lot of competitors, when you’re in there, there are a lot of surprises later.
Not much profit and also harder to market. Also banned, so you can’t do review or anything.
and a lot of suppliers. Products are everywhere. So many choices,so if you don’t have a good product, you can’t have a product for the long-term. So I want to do something different, Shopify website is a good opportunity.
So how long were you selling on Amazon? Before?
Okay. And now it’s one year on your own website?
Yes, I sell clothes.
You sell clothes and then google ads or facebook ads?
yes,Google ads, facebook ads and instagram ads and I do some fans.
step one by one, if they feel our clothes is very beautiful, they can’t buy it from another place,
they will go back to you. I think you can do some different product, no big competitors.
And also, you don’t need to buy a lot of products in advance. You have to put the money on the stocks.
But if you have others, you can buy.
Yeah. Drop ship. So you ship from China?
Yes,If you sell clothes it’s very hard to keep some stock. So many size and so many color,
Great. So sounds like it’s going well.
Yes, it is. Awesome!
Congratulations.Thank you.Thank you for sharing.
How is Amazon today? The condition, the market on Amazon?
Is it (asked) What is the impact of Amazon’s policy on Chinese sellers? Chinese
Honestly，influence is too big, very bad, very bad.
very bad. Why, why is it so bad?
Many of the previous TOP big sellers, or the brand, the account is sealed, the fund is sealed, which will definitely be affected.
Then their employees will also be affected, some sellers have dropped to 1,000 from the original 2, 3 thousand people, and now they have dropped to hundreds, even all collapsed.
This time as I know, there are about more than 50,000 sellers, and it has been blocked accounts.
Why do they think that happens? Like, what’s the reason? Do they know what reason or do they think what these reasons are?
That is to say is the impact of Amazon’s policy, the seller violates their policies,
Control comments, that is, what we said “brushing”, this is also caused by the Amazon platform itself, because their REVIEW weight is too big,
Chinese sellers are saying that if you don’t do brushing, you will be waiting for death, what you do is finding death, and if you don’t do the REVIEW, you will be waiting for death, and what you do is finding death.
Many people will think that I would rather find death. I don’t want to be waiting for death, which is destined to die, finding death. There is still a glimmer of life.
I’ve heard of this like site got washed, the reviews.
What do you think is the future of Amazon or selling on Amazon in the future?
Do the people trust it? I heard some people are selling on like Shopify or, or Walmart.
Yes, many Chinese sellers are turning to other platforms. Of course, they will still do Amazon, but their weight on Amazon will put down,
Will go to Wal-Mart, Shopify, or China’s AliExpress, including other local platforms,
This is inevitable, and the Amazon seller will have to do it for survival.
Anything else you want to add?
I think the future of Chinese sellers should have to go back to the supply chain, focus on the product.
Only focus on the supply chain, the seller doesn’t need to Control the comments, and it is also necessary to have a thick-scale development, which is inevitable.
If the Amazon platform policy makes us do changes, we must change，
If Amazon does not change its review policy, this problem can not be cured,
Including Amazon’s own self-service, they are putting some gift cards. They (Amazon) have a double standard.
They opened and closed their eyes on their own shop, and they still put their gift card,
But for other third-party sellers, they are sickle, cutting, double standard,
All sellers say that this time that Amazon is not just trying to catch the illegal review problem. This time, those who get in trouble are all Chinese sellers. It is more a Political behavior.
But for foreign sellers, American or European, they won’t have any trouble. We know that some of our Chinese sellers who also have foreign country accounts will have no problem.
So maybe this is the political reason between countries? Political behavior, in the name of this illegal review problem,
This has always been a double standard, which is particularly unfair. Therefore, the Ministry of Commerce of China has also spoken. I won’t say more here about it!
However, we still have to come back to our own sellers to cater to Amazon’s platform policy and start to move towards compliance, which is the right way.
Thank you. Thank you for that.
In 2021 now, Amazon seems more difficult. What’s your opinion?
I think, this year is the most difficult year for Amazon sellers, but Amazon platform still has a chance,
Some good stores accumulated in Amazon should continue to do it smoothly and insist on doing it,
Wait until there is a good opportunity to develop such an angle.
Why do you think the policies have changed or become more difficult from Amazon now?
First, Chinese sellers made a lot of money in Amazon last year. As a result, many sellers came to Amazon this year,
This competition is very big. This is the first point. The second point is that Chinese sellers have made some illegal ways, which has become more and more diversified and more serious,
This has led to the suppression of these by Amazon platform, which makes us, Amazon sellers equally difficult to move. Amazon rules are strict, and we find it equally difficult to move.
Okay. How do you think sellers in China will change from, from this? What is the future?
I think it means that Chinese sellers will reduce the way of serious violations, or no longer use some illegal cards,
However, if they are still controlling the review, maybe Chinese sellers will continue to do it. Amazon is still semi supported,
Is there any other parts you’d like to add?
I think it will be more and more difficult to do it on Amazon platform. This is a reality, but opportunities and challenges coexist,
However, we have been working in Amazon for several years. With the accumulation of experience, suppliers, supply chain and capital,
The demand is getting higher and higher. If you can do well in these aspects, as an Amazon seller, you will have the opportunity to continue to survive on this platform. Thank you!
All right. Thank you.
Okay. Here’s Alex. He’s been on the vlog before, man. Great to have you back.
Yeah. So we’re talking about, you know, Amazon and we’re here in China and the center of the sellers.
You’re an Amazon seller. And many accounts have been getting closed.
It’s a hot topic in China. So I’d love to hear your insights.
Why do you think this is happening?
In my opinion, and I also heard a lot of rumors,
the first reason is because of the black hat operation, about how sellers manipulate the review.
So I think this is the top reason for that. But I’m not sure about the Chinese sellers. I also heard of black hat technology.
I have been told that there are even like Israeli sellers and Russian sellers.
They’re very good at this kind of technology too. So I also wanted to ask you.
Like, this closing down the Chinese sellers, it’s unfair.
I feel similar.
Most of us are hearing it’s just happening to China-based sellers.
Even Chinese sellers with US accounts, I’m hearing this is not happening to them. From my understanding
it’s mostly China-based sellers that this is happening. But then again, what a lot of people will say,
it’s like, oh, but that’s where the black hat is. A lot of Chinese sellers are black hat. Not all but many.
So some people say that’s why. But then some people feel like it’s political like a trade war, you know, maybe it’s another version of the US-China.
Even some people we talked to today feel like it’s political.
I’m not sure about that, but I assume it’s more because of the manipulation of the review.
Yeah. If Amazon was doing the same to other country sellers, then I think it’s not political.
It’s more like their own operation to do this. I mean, this is a good operation for.
Other sellers for those small and medium sellers who focus on their own products.
They’re trying to really deliver a very good product and they’re doing honest operations.
So I think this is good to these small and medium sellers in the long-run.
So, what do you think is the future of, you know, selling on Amazon?
Yeah. I mean, this is interesting. People are saying, in China we have Tmall and Taobao.
Firstly, we have Taobao. So Tmall is more like branding stores. So in the future, maybe Amazon might have this kind of operation too.
For normal products, they have like, basic and for those curated SKUs,
curated brands, they might have another higher version like Tmall. So that’s what I’m thinking.
Yeah. And also I think in the future, the curated products and curated brands is going to be the tendency.
And, as a seller, you should focus more about interaction with your customers, and you also need to put your own platform or your own social media accounts.
So in this way, you can accumulate all other customers, contacts to your own place.
So I think the quality and the content and the interaction with the consumer should be very important in the future.
Great. Thanks, Alex. Really appreciate it. Great to see you again. Sure.
What do you think of the Amazon Seller market today in 2021?
At this stage of Amazon sellers, it is a stage of refined operation. Amazon’s policies will be more and more strict, but strict policies do not mean bad things,
It will better balance the market, so that means more high-quality products and high-quality sellers, especially Amazon Chinese sellers, can promote more high-quality products to consumers all over the world.
So accounts are being closed, why do you think that’s happening?
There are two points in the situation of Amazon’s market last year and this year. One is that the market reduced, it is affected by the epidemic, which makes many consumers’ wallets empty,
On the other hand, Amazon’s own policies now reduce some illegal sellers. After eliminating these sellers, many quantities, including fake reviews and brushing, will be reduced,
This part of the quantity is also within the market of reduction. Some bad products, some inferior products and the brushing shop have also been well ranked before. If they will be kicked out, the overall quantity will also decline.
What do you think is the future of Amazon and eCommerce?
In the future, Amazon will still become a good platform for its development, but the competition will be more intense, because many people will jump in the seller game,
There are three kinds of people who come to join in the seller game. One is a B2B manufacturer who has been engaged in foreign trade for many years. This kind of person is still greatly affected by the epidemic. These people will want to find another way,
Amazon platform is a good sales channel. They sell their own products on the platform. They have a competitive advantage. They have the advantages of capital and supply chain,
It just needs experience. At the stage of Amazon shuffling, a large number of experienced talents will come out and hired by these new sellers, and they will do better on the platform in the future;
There is also a kind of people who join in the seller game indiscriminately. At the beginning of this year, many sellers made a lot of money on Amazon.
This kind of people just saw that everyone has made money, so they will come and do it. This kind of person is also a part of it.
Another kind of people are traditional Chinese e-commerce platform sellers. Chinese e-commerce sellers have many competitive advantages, such as Taobao and tmall. The competition has been very fierce,
These sellers have a very large operating capacity, capital and supply chain capacity. They will also become a direction when they turn to Amazon.
These three kinds of people will become new sellers of Amazon in the future, and these people will also bring better products to Amazon. Of course, the competition will become more and more fierce,
Okay. And your business is software. Do you want to share about your ERP software?
As for ERP, many cross-border e-commerce sellers are using it, but many sellers are not familiar with ERP. The ERP we do is mainly for the three kinds of people I just mentioned,
We can help them quickly understand Amazon, how we make money on Amazon and how we do Amazon. How do we sell it? What can you make money by selling,
for factory sellers, or transformation sellers, or investors in Shenzhen, these people need ERP to help them manage their products,
[00:19:43] Do you need to do any advertising?
Don’t need to advertise. It’s embarrassing to advertise. We’re also in the spirit of helping sellers do this.
We also hope that more seller friends are willing to come to know our Ling Xing ERP. We really hope that our ERP can empower sellers, create more profits and help them save more costs. Thank you.
Thank you very much
[00:19:45] All right. Thank you so much for tuning in to the globalfromasia.com podcast. We’re too deep into the episodes.
好，那下面来让我们真正听听他们都说了些什么。非常感谢您收听我们Global From Asia的播客节目。我们来一起讨论下深度话题。
Almost 400 shows and always trying to experiment and learn about new types of content, different styles. I have a feeling we’re going to do more like this.
All this was a pretty big investment. We had to have a lot of translation, captioning, voiceovers.
But I think with today’s world of so much content, we want to stand out and we want to bring you some really original, on-the-ground insights of what is happening here in the seller community in China
and just let them speak for themselves, not, not various reporters and news.
[00:20:56] And you know what Chinese media says or Western media says, what are the sellers saying themselves? So I really hope you enjoy this show. We’re doing some broker deals.
We’re buying out Amazon sellers, we got some pending, got some going through the works in just a couple of months. Quite a long process, but we’d love to work with you.
If you’re interested at globalfromasia.com/broker, we’d love to see if you’re qualified and if we could make a deal together for selling your Amazon business.
That’s it for today, Mike Michelini here, Global from Asia podcast, over and out.
今天就到这里，Mike Michelini，来自 Global from Asia播客节目，再次