How brands show up and sell to shoppers in China is increasingly contested, and two recent moves show why. SmartScout founder Scott Needham warned that Chinese sellers are skirting the platform’s enforcement, questioning whether Amazon is unable or unwilling to stop it.
Meanwhile, Nike announced it will cut thousands of online distributors in China to consolidate sales on its own channels and three official storefronts, arguing that a consistent experience makes the brand stronger.
In a recent LinkedIn post, Needham, a flagged a significant enforcement problem that is allowing Chinese sellers to spend 678m RMB to create multiple Amazon accounts and avoid Amazon’s enforcements. The figure was disclosed by the parent company of Ziniao, a service that helps sellers manage 100 or more accounts simultaneously while masking that they’re operated by the same person.
Why Amazon Should be Focused on Enforcement Policies
“There’s no way Amazon isn’t aware of this behavior,” said Needham, former top Amazon seller. “They’re either turning their eye or they don’t know how to fight this.”
The importances of the issue is due to the fact that more accounts mean more listings, search placement and marketplace’s total visibility. Needham sees this tactic as buying share of voice through account volume, crowding the field and pushes legitimate listings further down the page.
“Is it any wonder that U.S/ sellers feel that foreign competition doesn’t play fair?,” asked Needham. “Could you imagine what Amazon would do if this company were based in the U.S.?”
Nike Cuts Distributors to Rebuild Consistency
Needham comments followed the announcement by Nike it will cut off thousands of online distributors in China starting in January 2027. The retail giant plans to concentrate online sales in four places: its own website and app, along with official storefronts on Tmall, JD.com and Douyin.
While consumers will still have broad availability to Nike products, the move is a crackdown on a market that created inconsistent pricing and branding that has hampered Nike’s effort to reverse a sales decline in the region.
“This is not about reducing access. It is about reducing fragmentation and strengthening the consumer journey,” wrote Cathy Sparks, Nike’s vice president and general manager of Greater China. “When the experience is consistent, the brand becomes stronger.”
Nike is working with affected partners to shrink their online footprints while building up their physical stores. Topsports, Nike’s largest distributor in mainland China, backed the decision despite expecting short-term pressure on its business.