[ BDSN ] 🇨🇳 Silent threat that could destroy your e-com biz overnight

 🇨🇳 HOW a COMPETITOR CAN BLOCK YOU from EXPORTING

“Be careful, you may need a Chinese trademark. I am a Chinese Amazon seller.”

That’s the headline of a recent Reddit post.

The author goes on to say, “If you have a U.S. trademark and your products are selling well, it’s important to register a trademark in China too. Otherwise, someone might register it before you, cause issues at Chinese customs, and force you to pay to resolve the problem.”

Registering a trademark in China is not expensive—about 800 RMB.

The USA is a first to use country. China (and many other countries in the world) are first to file. What’s worse, is you can't invalidate a trademark in China for non-use until 3 years after registration.

Another poster wrote, “If you do PL, you DO need a Chinese trademark. You need one, like, today. If you don’t file one, your competition will file for you. This is not a lesson to learn the hard way.”

Here is a similar story you should read (or watch):

Brian and Janine discussed a critical issue they faced during their Amazon journey recently on the AM/PM Podcast as well: being blocked from importing their product due to not having a Chinese trademark.

This problem arose when a competing seller, who was also sourcing from the same Chinese factory, filed a U.S. design patent on a shared product design. The factory had assisted this competitor with the patent process as well.

The competitor used the patent to file intellectual property (IP) complaints, leading to Amazon suspending Brian and Janine's best-selling ASINs. To further complicate matters, the competitor's IP allowed them to block exports of the product from China, effectively cutting off their supply chain.

The couple found themselves in a high-stakes situation as their Amazon listings were taken down just hours before they were set to finalize a lucrative deal to sell their brand to Thrasio. They scrambled to resolve the issue, consulting IP lawyers and leveraging support from Amazon representatives, but their efforts were initially unsuccessful.

Eventually, Brian reached out directly to the competitor for a resolution. The competitor, after understanding the situation and reflecting on his own experiences of being blocked in the past, agreed to release the IP complaint.

However, Thrasio required a formal mutual settlement agreement to ensure future disputes would not arise. Notably, the competitor requested a clause in the agreement reflecting his religious beliefs, stating that neither party would hold grievances against the other "on the day of judgment."

This resolution not only salvaged their business but also allowed the sale to proceed. The experience underscored the importance of securing intellectual property protections, building direct relationships, and remaining persistent in problem-solving.

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🔭 YOU GOTTA SEE THIS

🏷️ AMAZON ANNOUNCES PRICE FLOOR PROTECTION

Amazon has just introduced a new feature that helps you protect you from accidentally lowering your price below a minimum floor amount when you use percentage off price discounts.

Luba Ilyasova broke down how it works on Linkedin yesterday.

🕵️ AMAZON GOING AFTER INFLUENCERS for PAID REVIEWS

Bloomberg’s Spencer Soper says Amazon is intensifying efforts to combat paid product reviews, particularly from influencers on platforms like TikTok, YouTube, and Instagram.

The company has started sending questionnaires to reviewers, asking about their interactions with sellers and any influencer work they’ve done promoting products.

This move aligns with a broader government crackdown on deceptive reviews, as the Federal Trade Commission (FTC) recently enacted rules prohibiting businesses from paying for consumer testimonials.

Amazon emphasizes the company's robust policies against review abuse, noting the use of automated systems and investigators to prevent over 250 million suspect reviews in 2023.

The initiative raises concerns among Amazon sellers, as improper collaborations with influencers could lead to suspensions.

It’s unclear how Amazon selects reviewers for the questionnaires or how effective the campaign will be since responses are voluntary.

👮  AMAZON FRAUDSTER SENTENCED to PRISON

Brett Michael Bartlett, a former Amazon seller and business associate of Jim Cockrum who ran the Amazon training program My Silent Team, was sentenced to 15 years and 8 months in prison for a massive fraud scheme using selling on Amazon as the bait.

Key Details of the Fraud:

• Defrauded over 1,000 investors nationwide for an Amazon-based business

• Raised approximately $20.5 million through fraudulent securities offerings

• Used companies like Dynasty Toys and 7M E-group to mislead investors

• Misappropriated funds for personal expenses, including luxury vacations and rental homes

• Targeted investors, many from a large church by invoking his Christian faith

Legal Consequences:

• Sentenced on November 25, 2024, to 188 months in prison

• Convicted of wire fraud, mail fraud, securities fraud, and money laundering

• Ordered to pay $22.5 million in restitution to victims

• Will serve three years of supervised release after prison

The SEC and federal prosecutors emphasized that Bartlett and his father-in-law Scott A. Miller used sophisticated tactics to deceive investors, including sending bad checks and making Ponzi-like payments to stave off investor demands.

Read the full judgment here

🎉  NEVER TOO EARLY to ANNOUNCE a PARTY

The Prosper Show is one of the largest gatherings of Amazon Sellers in the world. The next conference is at the Las Vegas Convention Center March 25-27 (the same time as ShopTalk in Lost Wages).

Million Dollar Sellers is also hosting their MDS Inspire event for 500+ 7-figure sellers right before Prosper, on March 24-25.

And as traditional says, there must be a bunch of satellite events and parties around this gathering of hard-working, party-loving sellers and service providers.

The first to announce is already on the scene claiming its date and time: Wednesday the 25th at 7pm. It’s called the Marketplace Masquerade, and will include RC boat races in the pool of a luxury Sky Villa, along with masks provided for everyone.

Be on the lookout for an announcement soon from Dragonfish (a new company from Norm Farrar and Kevin King) for a special event during Prosper you will not want to miss.

✌🏼 Have a great weekend.

See you on the webinar in a few hours and back here Monday.

The answer to today’s STUMP BEZOS is
It’s $95K daily for a boat load of cars (record is $115K)