Amazon Pushed For Chinese Sellers And Now Faces The Consequences

Andrew Wagner

Amazon preferred Chinese sellers for a long time but now faces issues regarding the safety of the products they produce. Inc. pushed for Chinese sellers to be the backbone of its business but now these sellers are causing many problems for the company, according to The Wall Street Journal.

A Wall Street Journal investigation reported that earlier this year 10,870 items that were listed for sale on between May and August were declared unsafe by federal agencies, are deceptively labeled, lacked federally-required warnings, or are banned by federal regulators. Some of the items were taken down after the investigation.

Research firm Marketplace Pulse determined that 54 percent of Amazon sellers, whose addresses were able to be located, were located in China. New product listings are uploaded from China every 1/50th of a second. There is speculation over whether Amazon is turning into a Chinese flea market.

“Bad actors make up a tiny fraction of activity in our store and, like honest sellers, can come from every corner of the world. Regardless of where they are based, we work hard to stop bad actors before they can impact the shopping or selling experience in our store,” an Amazon representative said.

Amazon is paying the price for specifically targeting Chinese sellers on its online platform.

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Economics, Finance and Investing