The "butcher's knife" is still waving.

According to foreign media reports, Fairywill, a dark horse in the electric toothbrush category and a major seller that sells millions of units, has also been banned by Amazon recently.

Fairywill has always been a "red man" in front of Amazon. Just a few months ago, it was awarded the honor of "Amazon's Most Valuable Brand of the Year in 2020".

This is not the first time Fairywill has been recognized by Amazon.

In June 2019, Fairywill was also ranked among the "Amazon China's Top 100 Cross-border E-commerce Export Brands".

However, this brand, which is highly recognized by Amazon, still cannot avoid the fate of account closure.

At present, Fairywill seems to have disappeared from Amazon North America.

No matter whether you search for its brand name or search for popular keywords related to it, its product link does not appear, but is replaced by other brands of electric toothbrushes.

According to third-party data, Fairywill’s electric teeth have been ranked in the top five on Amazon all year round, with more than 75,000 reviews accumulated. In terms of sales and rankings, they are often compared with well-known brands such as Philips and Oral-B. Brand arm wrestling.

Fairywill also has a strong market presence in China. For a long time, many people mistakenly thought it was a foreign brand.

According to information from Tianyancha, Fairywill (Weiya) is a brand of Zhuhai Zongheng Youpin Cross-border E-commerce Co., Ltd. The company was established on June 24, 2016, and has risen rapidly in a short period of time.

Fairywill attaches great importance to brand marketing and has cooperated with more than 8,000 overseas celebrity bloggers. In just 3 years, it sold 5 million units worldwide.

According to third-party data, Fairywill has long occupied the position of the Top 3 electric toothbrush brand on Amazon Europe, America, Japan, Canada and other sites.

However, the rankings that took many years of hard work to establish suddenly returned to zero.

At the same time that Fairywill was blocked, the American media The Verge reported that another Chinese brand had its store closed.

This brand is Choetech, which focuses on cost-effective 3C charging products.

According to The Verge, no product information about Choetech can be found on Amazon. When asking Amazon for information about this brand, Amazon staff did not directly indicate whether the account would be banned, but instead directed the topic to An article in June about cracking down on manipulation of reviews seems to confirm that Choetech may be banned for suspected manipulation of reviews.

An industry insider analyzed that many well-established big sellers have experienced account closures one after another. It can be seen that these big sellers have greater advantages than ordinary sellers in terms of supply chain, funds, or brand marketing, but they still have the mentality of "everyone else has done it, and I will suffer if I don't do it." Or more Or at least some gray operational methods will be adopted. As a result, the atmosphere has become very bad, and it seems that nothing is "completely clean" anymore.

We must have a clear understanding.

No matter how well it sells on Amazon or how many honors it has received, as long as it catches you in a pigtail, you may be settled by future generations.

This "Autumn Queen" may be one year, five years or even ten years.

When we opened the store, we clicked "Agree" to all seller terms on Amazon. These terms or rules are much more stringent and demanding than American laws. After all, Amazon is a private company, and it can set up many regulations and gaps for its own benefit to exempt itself from responsibility and seize profits.

These lengthy and complicated terms of service for sellers are formulated by a group of top brains in the United States. Even if they are biased and overly strict, they are still legal and compliant. Even if a seller loses billions, it will be difficult to find fault with Amazon in court.

After selling the property to repay the loan and the subsidiary company to stop production, Youkeshu’s parent company has serious financial problems

On July 6, the announcement about Youkeshu’s store closure and layoffs was announced to The "shock" brought by the cross-border e-commerce industry is very strong. (For details, read "The Injury of Selling Products! 340 stores of Youshu have been blocked. What thunder has been stepped on? Stores with millions of SKUs will also be linked")

340 Amazon stores of Youshu have been blocked this time stores, causing a major impact.

Judging from the parent company’s financial report, at the end of 2019, Youkeshu had only 284 Amazon stores. By the end of 2020, this number increased sharply to 1,135, and the number of Amazon stores increased by 300%.

However, its Amazon store revenue increased from approximately 1.088 billion yuan in 2019 to approximately 1.525 billion yuan in 2020, an increase of approximately 40.26%.

Considering that the contribution of old stores may increase, their revenue share in 2020 may be even larger. So whether the 340 blocked stores are new stores or old stores, the impact will be completely different.

At the beginning of 2020, Youkeshu’s inventory amounted to approximately 1.018 billion yuan, which increased to approximately 1.224 billion yuan by the end of 2020. Inventory increased by 216 million yuan, and the proportion increased by 8.2%, which should be due to increased efforts in stocking.

Obviously, according to Youshu’s estimates, sales in 2021 should be better than in 2020. Now that 340 Amazon stores are blocked, it is difficult to predict how much of these inventories will be affected.

What's more, Youkeshu's sales in 2020 are not very optimistic, especially the sales of electronic products, mobile communications and game accessories, which are not as good as expected, and the company's inventory pressure has increased significantly.

These 340 blocked Amazon stores may have a certain impact on Youshu’s profitability.

While Youkeshu suffered a heavy setback due to the suspension of its account, the parent company Tianze Information also faced another dilemma: it was unable to repay the loan it acquired from the subsidiary, and could only sell a building to repay the debt.

It is reported that the available funds of Tianze Information at this stage cannot fully cover the 89 million yuan loan from Minsheng Bank. After negotiation between the two parties, Minsheng Bank initiated judicial proceedings to auction the property used as mortgage by Tianze Information - Tianze Information Zexing.com Building.

On July 7, another announcement from Tianze Information revealed how serious the company’s financial problems are now.

The announcement stated that due to the expiration of bank loans and supplier arrears, but the cash flow has basically dried up, the main bank account of Yuanjiang Information, a subsidiary of Tianze Information, has been frozen, and it has been unable to carry out normal business activities.

This "bad debt" of Yuanjiang Information has been going on for a long time.

On March 6 this year, Tianze Information announced that a 60 million yuan loan from Shanghai Pudong Development Bank Nanjing Branch was overdue.

This loan was transferred by Tianze Information to its subsidiary Yuanjiang Information Technology Co., Ltd. Yuanjiang Information was unable to repay the loan, and it coincided with the negative capital flow of the parent company Tianze Information, which resulted in Overdue.

In short: Yuanjiang Information has no money to repay the loan, and Tianze Information also "owes a lot of debt", so the loan is overdue and more debts need to be repaid.

Anyone who has ever borrowed a loan knows that the situation of debt rolling over is that the more you owe, the more you owe.

There is no other choice but to "pay the debts of the father and the sons". In order to allow the parent company to operate normally, Tianze Information can only withdraw 150 million yuan from the business operating funds of its current pillar subsidiary Youkeshu in 2020.

This also resulted in Youkeshu’s limited growth space in terms of business scale and its failure to complete the bet between the two parties.

Of course, Tianze Information is not willing to embarrass its current pillar subsidiary in the gambling agreement. After failing to complete the gambling agreement for two consecutive years, Tianze Information only symbolically recovered 0.38% of the company's total share capital from Xiao Siqing, the founder of Youkeshu and the current controller of Tianze Information.

Generally speaking, Tianze Information’s current financial problems are very serious, which has seriously hindered the development of Youkeshu.

In 2020, Tianze Information’s revenue was approximately 5.027 billion yuan, but it lost approximately 871 million yuan.

On the other hand, the subsidiary Youkeshu has a revenue of approximately 4.749 billion yuan and a net profit of approximately 417 million yuan in 2020.

Youkeshu’s revenue accounts for 94.48% of Tianze Information’s revenue, and it has completely dominated Tianze Information’s revenue.

In terms of net profit, if Youkeshu’s profit of 417 million yuan is deducted, Tianze Information’s loss will exceed 1 billion yuan.

Although Tianze Information is suffering from serious losses, Youkeshu’s own capital constraints are not optimistic either.

As of the end of 2020, Youkeshu has more than 500 million yuan in funds that have been restricted. The reason for the restriction is that "operating platform funds are restricted", which means the platform has detained funds that have not yet been released, or funds that have been frozen .

From this aspect, whether it is the parent company Tianze Information or Youkeshu, the degree of financial tension is not small. It stands to reason that under such circumstances, whether as a listed company or as a subsidiary with insufficient funds, the management of funds should be strictly controlled. In fact, in 2021, Tianze Information's management of funds has also emerged. Not a small loophole.

According to the disclosed information, Xiao Siqing, the founder of Youkeshu and the actual controller of Tianze Information, once occupied 50.01 million yuan of company funds for non-operational purposes by prepaying purchase funds.

Although after the incident, Xiao Siqing returned the 50.01 million yuan to the company and returned the interest of 3.1973 million yuan during the occupation period, this also exposed Tianze Information's capital management problems.

From this, it is not difficult to imagine that the utilization rate of its existing funds should not have reached the highest level. And how much waste of resources and funds was caused in this process? unknown. (Blue Ocean Yiguan.com)