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Amazon accused of sneaking China goods past taxes

How young were you when you started on Amazon? This seller joked about being a late bloomer—like showing up to kindergarten at 38! 😂

Guess in ecommerce, you’re never too old to add to cart.

  • Time to replace your Amazon software stack 📚
  • China goods, no taxes? 🔥
  • $19M in Black Friday coupons just hit the scene 💥
  • Holiday-ready ads, as easy as pie 🎅

BLACK MARKET

A “Trojan horse” is the nickname Amazon earned this week, courtesy of Italian authorities who raided two facilities while digging into alleged customs and tax fraud tied to China-based imports.

🚨 Raids shake up Amazon Italy

Officers raided the Cividate al Piano logistics hub and Amazon’s Milan HQ, seizing products, IT equipment, and spotlighting the manager overseeing internal goods movement. Key findings:

  • Over 5,000 products confiscated (toys, phone cases, air fryers, pens, scissors, basically a sketchy seller starter pack)
  • IT equipment taken from HQ
  • Manager flagged in the goods-routing review
  • Ties to an earlier €1.2B tax-evasion case

The big concern: China-based goods allegedly entering Italy without VAT or customs duties, potentially costing the state hundreds of millions.

🌍 Probe spreads beyond Italy

Investigators suspect dozens of Italian companies are fronts for Chinese entities.

  • Milan prosecutors briefed counterparts across Germany, France, the Netherlands, Poland, Spain, Belgium, Sweden, and Ireland.
  • Up to 500,000 products could be involved, potentially sparking an EU-wide enforcement wave.

Italy holds marketplaces jointly liable for unpaid taxes by non-EU sellers, prompting EU prosecutors to review Amazon’s 2021–2024 accounts under updated VAT rules. 

Amazon maintains it complies with tax laws, but the investigations continue.

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BITES OF THE WEEK

Mercado Libre goes all-in with $19M in Black Friday coupons

Right as Amazon, Shein, Shopee, and Temu ramp up their Latin America push, Mercado Libre is going big this Black Friday, investing nearly $19M in coupons to lure shoppers. 

If you’re feeling pressured, there’s also an opportunity to cash in.

🌎 Competition is heating up

Mercado Libre is doubling down on incentives that drive sales:

Global players are pushing hard, forcing sellers to step up:

🔥 Stay ahead or fall behind

Latin America’s ecommerce scene is heating up, sellers who invest in pricing, shipping perks, and partnerships can capture growth, while laggards risk falling behind.

Create professional holiday ads in minutes

U.S. brands can now prep for peak season in a snap using Amazon’s AI-powered Creative Agent in Creative Studio. 

Here’s what it can do:

🛠️ How to get started

  • Sign in to Creative Studio via your Amazon Ads account
  • Go to Creative Tools, then select Creative Agent
  • Describe your ad in the chat box and upload a product image, ASIN, or brand guidelines
  • Review, tweak, add music or voiceover, and save directly to your Creative Assets library

Early adopters have already seen 12% sales lifts in just a month, perfect for moving leftover inventory or capturing all types of holiday buyers.

Author : SellerBites
Faith began working on SellerBites in 2021, a weekly newsletter that provides sellers with the latest news and updates in FBA. With first-hand experience in managing various seller and vendor accounts, she understands what sellers face on this platform. Her background led to the conception of SellerBites, which main goal is to help people become better, more informed entrepreneurs in the Amazon marketplace.
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