Caixin
Sep 09, 2022 04:18 AM
BUSINESS

Amazon and PayPal Crackdowns Hammer Chinese Vendors

A cross-border e-commerce warehouse in Guangzhou.
A cross-border e-commerce warehouse in Guangzhou.

Chinese cross-border e-commerce retailers suffered losses in the first half of 2022 as platforms such as Amazon.com tightened compliance policies and as overseas demand plunged amid skyrocketing inflation.

Tiza Information Industry Corp., the parent company of Shenzhen Youkeshu Technology, reported a loss of 83.93 million yuan ($12.06 million) in the first six months of this year on a 64% revenue decline.

Last year, Amazon closed 340 of Youkeshu’s stores on its platform as part of a crackdown against paid reviews and other violations. The company said in its earnings report that it voluntarily cut back its business on Amazon and AliExpress, the cross-border retail platform owned by Alibaba Group, due to changes in platform policies and fierce competition in the European and American markets.

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