The once-thriving cross-border e-commerce industry is facing unprecedented challenges as major sellers grapple with the aftermath of Amazon's crackdown on policy violations. A prominent Shenzhen-based e-commerce company, referred to here as Company X, is currently embroiled in multiple legal disputes with suppliers over unpaid invoices, with more than ten cases involving claims exceeding 1 million yuan each.
The crisis traces back to June of last year when Amazon's stringent enforcement measures against policy violations delivered a heavy blow to numerous cross-border sellers. Company X saw its procurement scale and sales performance plummet dramatically, leading to severe cash flow pressures and frequent delays in supplier payments.
Mounting Legal Pressure
Due to Company X's historically large inventory volumes, many suppliers found themselves unable to sustain prolonged payment delays and ultimately resorted to legal action. The lawsuits extend beyond simple payment collection, encompassing additional claims for mold costs, finished goods inventory value, raw material inventory value, and storage fees.
A representative case involves a well-known Dongguan-based communications electronics company that filed suit against Company X in Shenzhen's Longhua District Court on November 19, 2021. The plaintiff's comprehensive claims include:
1. Approximately 4.1 million yuan in unpaid invoices
2. About 820,000 yuan in penalty fees
3. Compensation for finished goods inventory valued at 3.78 million yuan
4. Compensation for raw material inventory valued at 4.59 million yuan
5. Ongoing storage fees of 1,440 yuan per month
6. Legal fees of 40,000 yuan and preservation guarantee fees
7. Joint liability for Company X and two subsidiaries
8. Full coverage of litigation costs
The total claims in this single case amount to approximately 13.32 million yuan. While the court has held hearings, no verdict has been rendered yet. Notably, Company X faces over a dozen similar lawsuits, each involving claims exceeding 1 million yuan.
Industry-Wide Ripple Effects
In recent years, several major cross-border e-commerce sellers have encountered significant payment disputes with suppliers. This has led suppliers to adopt more cautious payment terms, marking a stark contrast to the more lenient practices of previous years. However, suppliers themselves face precarious situations, with numerous cases of bankruptcy this year due to payment delays from large sellers.
Company X's legal battles are expected to profoundly impact cooperation models between cross-border sellers and suppliers. Future collaborations will likely feature more detailed contractual terms and greater reliance on legal protections. This shift reflects broader transformations occurring within the cross-border e-commerce sector.
As market conditions grow increasingly challenging, cross-border sellers must prioritize financial stability through improved marketing strategies, enhanced risk management, and stronger financial controls. Only through such measures can companies navigate the competitive landscape and achieve sustainable growth.