Monday, November 11, 2019

"Amazon’s China"_ Amazon’s Heavy Recruitment of Chinese Sellers Puts Consumers at Risk

THE WALL STREET JOURNAL

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Amazon’s Heavy Recruitment of Chinese Sellers Puts Consumers at Risk

The e-commerce platform has included banned, unsafe, mislabeled products. One reason: It wooed China’s manufacturers to sell directly to the U.S.


By Jon Emont

Nov. 11, 2019 11:17 am ET
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It looked like Amazon.com Inc.’s yearslong quest to build a shopping business in China was a bust in July when it folded a big part of its local business.

In fact, Amazon’s China business is bigger than ever. That is because it has 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, according to a Wall Street Journal investigation.

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 Journal’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.

Amazon’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.

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READ MORE: https://www.wsj.com/articles/amazons-heavy-recruitment-of-chinese-sellers-puts-consumers-at-risk-11573489075?mod=hp_lead_pos8


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