Amazon Fails In China, Website To Close

Problems grow for the e-commerce giant

June 5, 2019 - Los Angeles, CA – Global giant Amazon couldn't compete in China and will shut down its China website (Amazon.cn) in July. Ironically, Amazon enables and facilitates an avalanche of counterfeit and fraudulent product sales, scams, and fake reviews, and is facing allegations of data leaks and employee bribes, but couldn't dominate Alibaba -- China's notorious counterfeit marketplace, and JD.com which Walmart has a stake in. China is the source of about 80% of the world's counterfeit goods and a world leader in intellectual property theft.

“We are notifying sellers we will no longer operate a marketplace on Amazon.cn, and we will no longer be providing seller services on Amazon.cn effective July 18th.” Amazon said in an email sent to multiple publications. Amazon will continue to operate its other various global websites.

40% of Amazon's European marketplace sellers are based in China, and about 70-80% use Fulfilled by Amazon ("FBA") services to distribute their goods according to Marketplace Pulse, an e-commerce intelligence and data firm. FBA allows China sellers to remain invisible to Amazon buyers and flood the consumer e-commerce marketplace with an inexhaustible supply of counterfeit, fake, and replica products. Operating as "just a venue," Amazon has complete legal immunity for dishonest seller practices, counterfeit, and fraudulent third-party sales activity, but still takes a transaction fee for each item sold.

Amazon has been under fire for years for allowing the practices to continue and also operating as a direct seller of counterfeit, fraudulent, and replica products.

Amazon's practices captured the attention of the White House and Assistant to the President for Trade and Manufacturing policy, Peter K. Navarro, who wrote a harsh condemnation in the WSJ; "when you purchase brand-name goods through online third-party marketplaces like Alibaba, Amazon, and eBay, there’s a good chance you’ll end up with a counterfeit." The White House warned 'clean it up or else,' but too little, too late. Amazon has grown into and invasive, manipulative superpower controlling 50% of online sales. Amazon's practices may be the target of an FTC and House Judiciary Committee antitrust probe and investigation reports USA Today.

The value of counterfeit and pirated goods is forecast to grow to $2.8 trillion and cost 5.4 million net job losses by 2022 states a 2017 International Chamber of Commerce Report. Congress can enact legislation that holds e-commerce websites accountable for their deceptive and dishonest practices. Will they?

Until then, consumers only choice is to avoid businesses that enable, facilitate, or participate in global criminal enterprises.