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November 13, 2019 02:25 am

Amazon's Heavy Recruitment of Chinese Sellers Puts Consumers At Risk

A Wall Street Journal investigation found that Amazon's China business "aggressively recruited Chinese manufacturers and merchants to sell to consumers outside the country. And these sellers, in turn, represent a high proportion of problem listings found on the site." From the report: The Journal earlier this year uncovered 10,870 items for sale between May and August that have been declared unsafe by federal agencies, are deceptively labeled, lacked federally-required warnings, or are banned by federal regulators. Amazon said it investigated the items, and some listings were taken down after the Journalâ(TM)s reporting. Of 1,934 sellers whose addresses could be determined, 54% were based in China, according to a Journal analysis of data from research firm Marketplace Pulse. Amazonâ(TM)s China recruiting is one reason why its platform increasingly resembles an unruly online flea market. A new product listing is uploaded to Amazon from China every 1/50th of a second, according to slides its officials showed a December conference in the industrial port city of Ningbo. Chinese factories are squeezing profit margins for middlemen who sell on Amazonâ(TM)s third-party platform. Some U.S. sellers fear the next step will be to cut them out entirely. In response to this article, an Amazon spokesman said, "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."

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