Amazon recently banned top Chinese sellers over improper use of review system as they were found to have solicited false reviews from consumers and manipulated reviews through gift cards, a media report said on Friday.
An investigation by Amazon found that Chinese sellers had resorted to malpractices of selling their products by either compensating/ reimbursing real customers for leaving a positive review. They also made fake orders and left positive reviews through ghost Amazon accounts, The Singapore Post reported.
Amazon has banned some of the top Chinese brands from May this year.
According to the Shenzhen Cross-border E-commerce Association, at least 50,000 Chinese merchant accounts had been affected by Amazon's move since May, and that Chinese cross-border e-commerce companies had suffered losses of more than 100 billion yuan ($15.4 billion), Global Times reported on Friday.
The development came after the Competition and Markets Authority (CMA) of the US launched a formal investigation into Amazon and Google to address concerns that the two companies were not doing enough to tackle fake reviews.
Allegations against Chinese companies have surfaced as the rise in Beijing's e-commerce transactions were reported in recent years.
According to statistics from the General Administration of Customs, China's total cross-border e-commerce (imports and exports) in 2020 increased by 31.1% to USD 260 billion of which exports amounted to 172 billion, The Singapore Post said.
( With inputs from ANI )
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