Jan 31, 2022 11:14:00

Chinese vendors kicked out of Amazon for rule violations are now entering Wal-Mart's online marketplace one after another

Amazon has

been posting a series of systematic fake reviews , and it is reported that in 2021 Amazon tightened fake review regulations and expelled a large number of Chinese vendors. Meanwhile, an e-commerce site-related research company, Marketplace Pulse, announced the results of a survey stating that 'Chinese companies exiled from Amazon are flowing to Wal-Mart.'

Marketplaces Year in Review 2021 --Marketplace Pulse
https://www.marketplacepulse.com/marketplaces-year-in-review-2021

When shopping on Amazon, you can understand the features and quality of each product by checking the reviews received for each product. However, it has been reported that some of the vendors selling products on Amazon pay reviewers to post reviews, and that there are large organizations that post fake reviews, and Amazon Is stepping up efforts to reduce fake reviews.

As a result of Amazon's tightening of fake review regulations, by September 2021, accounts of more than 3,000 third-party distributors were suspended and more than 600 Chinese brands were banished from Amazon. At the time of this announcement, Amazon will continue to improve detection of fraudulent use and take coercive action against malicious attackers, including those who are willingly involved in policy violations, including fraudulent reviews. 'We will continue to tighten regulations,' he said in a statement.

Amazon Announces Expulsion of Over 600 Chinese Brands Covered With Fake Reviews-GIGAZINE

According to Marketplace Pulse, a sharp decrease in the number of reviews was confirmed by multiple Chinese vendors immediately after the above-mentioned tightening of fake review regulations by Amazon. If you check the 'Graph showing changes in the number of reviews for a product of a Chinese vendor' published by Marketplace Pulse, you can see that the number of reviews has decreased sharply since the beginning of 2021.

The graph below shows the share of Chinese vendors in the Amazon Marketplace. The share of Chinese vendors gradually increased from 16.14% in January 2017 to 42.3% in December 2020, but growth slowed in 2021 when regulations were tightened by Amazon. In December 2021, it was 36.9%.

As the growth of Chinese vendors on Amazon slows, Wal-Mart, the world's largest supermarket chain, opened its marketplace to vendors based in countries other than the United States in March 2021. In addition, Wal-Mart's vice president of global sourcing, Michelle Mi, said at an international conference in Shenzhen, China, 'Chinese distributors have a very clear advantage in the cross-border EC space.' He made a statement and emphasized the high influence of China.

Since March 2021, Chinese vendors have entered the Wal-Mart marketplace one after another, and in December 2021, more than 6,000 Chinese vendors began selling products at Wal-Mart. Some of these Chinese vendors are using Walmart's delivery agency service '

Walmart Fulfillment Services (WFS) ', and Marketplace Pulse said, 'If Chinese vendors are using WFS, Walmart customers. I don't know who the seller is. This is the same as using Amazon's fulfillment services. '