Why Amazon couldn't keep up in China

Tax fraud: Amazon suspends a number of Chinese traders

The online retailer Amazon took massive action against numerous accounts from Chinese providers in the new year and excluded them from direct sales in the so-called Amazon marketplace.

The decisive factor should have been serious tax omissions on the part of the dealers - most of them would not have even registered their domestic German activities with the responsible tax offices.

This is reported by blogger Mark Steier, who also draws attention to a message that Amazon had sent the affected retailer. Accordingly, the online retailer has already confiscated Amazon Payments credit and remaining inventory.

There is now a great deal of unrest among the major Chinese Amazon retailers. Millions of FBA stocks and credit balances of the dealers at Amazon were confiscated at the request of the German tax authorities and the seller accounts have been suspended. My Chinese information provider spoke of the panic that prevails among the dealers there: “The topic has exploded in the CN sales circle since yesterday. Almost only larger sellers were affected. […] Larger sellers with house no. FBA inventory 2 -3 million euros were blocked and therefore caused panic among sellers ”, according to the original message that I received.

Directly from China: 10 instead of 17 euros including shipping

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Figures from the news channel N-TV illustrate the extent of tax fraud on Amazon. He asked the responsible tax office in Berlin Neukölln and inquired how many of the almost 6,000 Chinese retailers who offered their products on the Amazon marketplace were registered at all. According to the tax office, only 432 dealers had applied for a VAT number.

Recently, German customs authorities took action against the import of Chinese goods via specialized portals such as Gearbest - ifun.de reported.