Amazon seller caught running $2M Nintendo counterfeit ring

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Time to hit pause on the chaos, grab your drink of choice, and catch up on the good stuff… and the not-so-good.

Here’s what you missed:

• Want a FREE pass to your next big move in Toronto? 🎯
• $2M Nintendo counterfeit ring collapses on Amazon 🎮
• Is AI taking over China’s shopping streams 🤖
• Amazon set to drop listings without proof 📄
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BLACK MARKET

A warehouse in New York wasn’t storing your usual boxes of inventory, it was a full-blown counterfeit factory. 

Investigators say the operation had been quietly pumping fake Nintendo gear through Amazon storefronts for years, racking up over $2M in bogus sales before the game was up.

🍪 Quick bits

• Red flags: High return rates and complaints tipped Amazon off.
• Verified: Amazon and Nintendo confirmed the products were counterfeit.
• Scale: Five storefronts, including PandaVida Inc. and Zuzu Cares 4 U, traced back to one NY warehouse.
• Risk: Counterfeit electronics can cause fires or injuries, extra concerning since many were marketed to kids.
• Crackdown: Amazon banned the accounts, pulled the listings, and refunded customers under its “zero tolerance” policy.
• Context: Nintendo already won a $2M case last year against a seller of Switch modchips and flashcarts.

💬 SellerBites’ take

Counterfeits aren’t just a nuisance, they’re dangerous, and they make every legit seller look shady by association. Amazon will gladly nuke shady accounts, but don’t miss the bigger lesson: your authenticity checks aren’t paperwork, they’re armor.

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BITES OF THE WEEK

• Supply Chain Webinar: ICYMI, Amazon is dropping prep services, leaving you with more order prep work.
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TECH MARKETING

AI hosts dominate China's shopping streams

In China’s livestream shopping arenas, the hottest influencers aren’t hustling for brand deals or chugging energy drinks, they’re AI avatars.

These digital hosts aren’t just keeping up with humans, they’re outselling them.

🍪 Quick bits

• Case study: Brother (the Japanese electronics giant) tested avatars on Taobao and Pinduoduo. In just two hours, they sold $2,500 in printers, a 30% jump over their human hosts.
• The edge:
  • No fatigue, AI can stream endlessly.
  • Real-time interaction, powered by Baidu’s video models + DeepSeek’s LLMs.
  • Scale, dozens of avatars can sell across platforms at once.
• Big picture: Livestream commerce already drives one-third of China’s ecommerce, with half the population tuning in, and AI hosts are becoming the default salesforce.

💬 SellerBites’ take

Charisma sells, but if AI is pulling better numbers and never burns out, the “human touch” starts sounding like a nostalgia play. 

For Amazon sellers, this isn’t sci-fi, it’s a preview. Imagine 24/7 product demos running on autopilot, while your competitors’ human reps are still asking for coffee breaks.

AMAZON NEWS

Amazon threatens to pull listings without proof

Forget the Buy Box brawl, Europe’s electronics sellers are now fighting a paper war. 

Starting September 17, 2025, Amazon will demand proof of supply chains, and anyone without the right invoices could see listings vanish, or worse, watch inventory get locked up.

🍪 Quick bits

• Proof required: Invoices no older than 180 days, covering at least 100 units.
• Full transparency: Supplier name, address, email, and website must be included.
• Target brands: Samsung, Dyson, Canon, Sony, HP, Philips, Panasonic.
• Where: Germany, France, Italy, the UK, and the Netherlands.
• No docs: Inventory may be returned, destroyed, or donated, aka bye-bye revenue.

💬 SellerBites’ take

Amazon says it’s protecting buyers from counterfeits, but the reality is smaller sellers are stuck under a paper avalanche while big brands casually hand over their docs. 

For many, this isn’t compliance, it’s a survival test. The irony? Amazon built its empire on “frictionless” selling. Now, for electronics, friction is the new business model.