Amazon closes 340 online stores operated by one of largest Chinese retailers

The action was taken against stores run by Shenzhen Youkeshu Technology Co. for allegedly violating Amazon’s rules, without providing any details.

The step is taken as the US e-commerce giant intensifies its crackdown against paid reviews and other violations.

The affected stores, the operations of which Amazon had either banned or frozen, made up 30 per cent of Youkeshu’s total retail presence on the platform, according to Tiza. It said more than $20.08 million of Youkeshu’s funds have been frozen and estimated the retailer’s first-half sales this year to be reduced by 40 to 60 per cent.

Youkeshu had a total of 1,135 online stores on Amazon in 2020, which raked in 1.5 billion yuan in sales that same year, according to a separate filing by Tiza to the Shenzhen Stock Exchange in June.

As of the end of 2020, Youkeshu had a total of 1,135 online stores on Amazon in 2020, according to Tiza Information’s exchange filing with the Shenzhen Stock Exchange.

Since early May, product categories from some of the major Chinese electronic gadget sellers have been removed from Amazon’s online marketplace.

The affected Chinese electronic gadget, whose sales on Amazon exceed USD1 billion, includes RAVPower power banks, Taotronics earphones, VAVA cameras, Atmoko, Aukey, Austor, Homasy, Homitt and Homtech.