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Amazon Hits Chinese Sellers With Crackdown on Fake Reviews Obscure Chinese makers of everything from wireless headphones to kitchen mops that wanted to crack the U.S. market for several years have turned to the world's biggest e-commerce company for help. They use an Amazon.com Inc. program called Fulfillment by Amazon (FBA) that allows third-party merchants to store their goods in its warehouses and let the U.S. company handle delivery, returns, and exchanges. To get attention on Amazon's sprawling marketplace, many Chinese sellers offer freebies or even cash to consumers willing to write favorable product reviews. Amazon once allowed such incentives in exchange for reviews to help introduce products to customers. But it began discouraging the practice in 2016, realizing freebies compromised the integrity of customer reviews. Many merchants ignored the new rules by recruiting shoppers on Facebook and reimbursing them via PayPal to elude Amazon's detection, and the problem persisted. An Amazon.cn delivery person hands a package to a customer. One of the biggest Chinese casualties is Shenzhen Qianhai Patozon Network & Technology Co., maker of a formerly hot-selling headset brand Mpow, which has been dark on Amazon since April. The company issued a public letter in May saying it was "closely communicating with Amazon and actively applying for reinstatement" and described the process as "positive." But this month the company halted its research and development team's operations for the rest of the year and is encouraging employees to seek jobs elsewhere, according to a person familiar with the matter who doesn't have authorization to speak with the media. Guangdong SACA Precision Manufacturing has been trying to persuade Amazon to rescind a June decision to suspend its electronics brands RAVPower and VAVA, which make items like power banks, baby monitors, and electronics accessories. In a stock exchange filing in June, the Chinese company cited violation of rules regarding gift cards as a possible reason for the suspension. But the outlook is grim, according to a person familiar with the matter who isn't authorized to speak with the media. For now, Guangdong SACA is trying to sell via its own websites, where it's dropped prices by as much as 60%, the person says. Robots move shelves at the Amazon fulfillment center in Baltimore. Photographer: Melissa Lyttle/Bloomberg Before condemning her company and other Chinese brands as scofflaws, she says, people should keep in mind the reality of selling on its website. "We are not terrible people selling low-quality goods with bad tactics," Wu says. "But if you want to survive, you have to make great products, minimize the logistics costs, and make your reviews look good." And Chinese aren't the only ones manipulating reviews, she says. Indeed, many U.S. sellers have been dinged for fake reviews over the years, too. high quality imitation bags
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