July 29, 2023
No one would have thought that Bezos' betrayal + costly divorce heralded collapse of Amazon in Chinese market. As gray swans incidents came up one after another, I wonder if anyone can remember who this butterfly flaps its wings in Amazon jungle in South America. Looking back, maybe you can see it more clearly!
1. Amazon betrays Chinese consumers
April 18, Easy Security announced that Amazon will cancel its local e-commerce business in China. Subsequently, Amazon China announced that it would stop providing seller services to third-party sellers on Amazon China website on July 18, 2019. So, what about balance on previous Amazon account?
Amazon China Weibo official replied: If gift card was topped up and not used, you can apply for a refund within three business days. If you have already started using it, there is no refund, and balance can only be used to buy other goods, and it can only be used to buy domestic goods. The key is that stores are closed and seized, what else can you buy? Consumers can only hope for luck.
Second, founder Bezos betrayed his wife, Amazon was cut out of a $35 billion cake
On January 10, 2019, a number of media outlets confirmed reports that Amazon founder Jeff Bezos is married to former TV presenter and prominent Hollywood agent Patrick Whitesell. His wife Lauren Sanchez has a secret relationship. According to sources, Bezos, 54, and Sanchez, 49, met through Sanchez's husband Whitesell. The news quickly hit headlines of major media outlets around the world, and people who eat melons were shocked!
Third, self-convert and sell, sellers have nowhere to complain when they get killed
Amazon is getting more aggressive in its private label business, according to CNBC, and data shows that if Amazon decides to get serious about category, it could quickly become a formidable competitor. Many big sellers have been forced to close due to self-managed Amazon stores!
The seller said it was in toy category on Amazon at first. One day, one of his toys became popular and supplies were in short supply, so he started restocking madly. They work overtime every day to produce new products and then ship them to an Amazon warehouse they rent in United States. When everything seemed to be going well, something unexpected happened. One day, when he asked Amazon to check item, Amazon sent him an email telling him that item was lost. At time, his heart was cold and he could only watch explosive items become orphaned. Is it really that simple? A few days later, he discovered that product, exactly same as before, was selling well on Amazon, and seller of this product was Amazon's own brand!
Eamon Kelly, senior analyst at Edgewater Research, believes that many brands are increasingly leaving Amazon. In 2014, Amazon's self-sold physical goods accounted for 41% of total market, compared to 53% in 2018.
Fourth, Yanhuang Yingdong AWS Trademark Infringement
July 17, 2018 Beijing Yanhuang Yingdong Technology Development Co., Ltd. released a statement that Beijing Higher People's Court has formally accepted her company's lawsuit against Amazon.com and Sinnet for using "AWS" logo without permission. violation cases. From announcement it follows that on July 9, Beijing Higher People's Court accepted case for consideration. Beijing Yanhuang Yingdong Technology Development Co., Ltd. asked court to order defendant to stop using "AWS" or similar logos in commercial transactions, jointly compensate its economic loss of 300 million yuan, and publish it in China Intellectual Property News. "remedial action statement. The announcement was subsequently confirmed by Douban, Sohu News, Phoenix Finance, and other media outlets.
V. Copyright Infringement Analysis Deep Lens
Since 2018, Amazon has been promoting cameras with Deep Lens logo on its official website, Facebook, at trade shows and other public places to promote sales. At same time, many domestic media also followed suit to promote Deep Lens cameras, including many domestic IT media. However, it is understood that Deep Lens trademark belongs to Beijing Faanshi Technology Co., Ltd., which seriously infringes rights of Deep Lens . Branded camera lens under Faanshi brand. .
6. Litigation, trademark infringement
Coincidentally, as of press time, China Judgment Documents Network has completed 2,348 cases involving Amazon, including 70 trademark exclusivity cases, 106 registered trademark cases, 56 registered trademark exclusivity cases, and 45 similar trademark cases. signs. Simply put, Amazon has become a depression in management of intellectual property rights in China.
Seventh, Europe often doesn't pay taxes
In contrast to China's reckless repeated violations, in 2017 Italian tax authority fined Amazon €100 million in back taxes.
In 2012, French government demanded that Amazon pay about $250 million in taxes between 2006 and 2010, as Amazon shifted sales revenue from countries with high tax rates to countries with low tax rates to avoid paying taxes. Since then, company has had many disputes with French tax authorities. Not only in France, but also in October 2016, European Commission announced that Amazon was illegally avoiding taxes in Luxembourg by requiring Amazon to pay US$294 million in taxes to Luxembourg government.
In December 2017, French Ministry of Economy filed a lawsuit against Amazon seeking a $11.8 million fine from Amazon for abusing its market position to suppress suppliers.
Amazon's bad faith practices may not always be successfully replicated. As intellectual property rights protection in China gradually strengthens, Amazon's exit from China is also most reasonable choice for Amazon.
As to why Amazon retreated to China, some of Yi Anfang's comments indicate that it was mainly due to Amazon's "acclimatization". Amazon has always hoped to copy successful model of United States to China, and was extremely distrustful of Chinese management team, parachuted executives, and did not understand Chinese market. All these actions hurt Chinese market. As they say, Rome was not built in a day, and Amazon does not claim that it took a day to become what it is today.
When transgression and betrayal become natural, what more can be said?