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More than 11,000 companies registered in the UK were found to have only one empty shell,
even more than 2,000 companies registered in the same place!
Among the registrants of these empty shell companies, there are many Chinese sellers who have to avoid platform rules.
The British government has noticed this issue. It is expected to make a crackdown, and another large -scale seller account will be affected ...
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For cross -border sellers sold in the UK \u0026 Ldquo; Thunder \u0026 rdquo;.
According to a survey of the Sunday Post, in the past year, Chinese citizens have used \u0026 ldquo; soft contact \u0026 rdquo; And most of these companies are registered in 18 addresses, and many of them have only one shell.
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This density is very scary. What is the concept?
For example, the humble apartment above a takeaway shop in Sammert is the registered place of 761 companies.
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The south bank of London, only one apartment has more than 1,500 companies registered.
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An empty shop on a street has registered 2608 companies.
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So many companies can be founded in the UK, largely due to the loopholes of \u0026 ldquo; soft contact \u0026 rdquo; (Soft Touch) system. The system allows anyone to create new businesses without identity certificate. Registered companies only need less than 15 minutes and £ 12, and do not need to provide address certification, passport or driving license. The cost is very low.
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The British shell company exposed this time, some of which are related to the store account of cross -border sellers. Since Brexit and the release of a new VAT policy, due to high taxes and rising logistics prices, sold in the UKHome costs have risen sharply. Having a British company, it has a lot of advantages for cross -border sellers.
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In the case of rising logistics costs, rising advertising costs, and rising raw material costs, \u0026 ldquo; Everything rose \u0026 rdquo; every seller tried to save costs. This also allows some sellers to choose to take risks and use rules to register in the UK. They use these shell companies to register an account of e -commerce platforms such as Amazon and EBAY to avoid platform rules and some taxes paid, so as to occupy an advantage in competition.
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With the exposure of the media, the British government has noticed this issue and stated that it will investigate and launch a package of targeted reform plans. With the cancellation of these empty shell companies, the e -commerce platform account registered by these companies will inevitably be difficult to escape.
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\u0026 nbsp; 1. For such a large amount of companies to be canceled, the associated account will also be closed, so many sellers will lose heavy losses.
You know, Britain's crackdown on tax evasion is very large. If tax issues are found, it is likely to face huge fines.
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2. From a positive perspective, these sellers who use loopholes have a great advantage in cost, and it is difficult for other sellers to compete in price competition. After cleaning, the competitive environment may improve slightly.
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3. Although only a few cross -border sellers involved in this incident, the follow -up may have an adverse effect on all British station sellers. In addition to government surveys, e -commerce platforms will also take a hand -in. Under the circumstances that the platform policy is constantly strict, it may further exacerbate the platform's control of the behavior of Chinese sellers and continue to tighten the policy.
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The exposure of a large number of empty shell companies is a loud alarm clock. The era of barbaric growth has long been pages. Cross -border e -commerce comprehensive compliance is the increasing trend. Sellers and friends must not be lucky, and they must avoid tax avoidance and compliance operations.
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Starting from March 14, the repeated postponed strong customer identity verification (SCA) e -commerce rules will be officially effective. With the implementation of this new anti -fraud rule, sellers and payment providers will need to take additional authentication measures for consumers.
\u0026 nbsp; How does this new regulation affect e -commerce sellers?
E -commerce sellers must abide by new regulations, otherwise they will face the risk of being rejected by customers.
Starting from January 18, the card issuer has begun to refuse some non -compliance transactions, and all non -compliance transactions will be rejected after March 14.
In 2021, the epidemic promoted the increase in British financial crimes, leading to a total of 568 million pound fines for the British Financial Behavior Regulatory Administration. With the increasing number of returns and refund fraud, this bill can better protect sellers. However, at the same time, the more troublesome payment process may also prevent some consumers from buying online. Due to the decline in customer experience, it may also damage long -term brand loyalty.
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- How should e -commerce sellers deal with?
Check whether the company or commercial banks that provide you with a checkout solution have the required technology. If the customer cannot provide two different forms of identity certificates, the amount they pay may be considered as unsatisfactory and rejected. The seller needs to make a prompt and actively communicate. In the future, customers can also add sellers to \u0026 ldquo; trusted beneficiaries \u0026 rdquo; to avoid review, and provide a good customer experience to cultivate a group of high -loyal customers.
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- The bill has not yet been officially implemented, and there are also exemption rules. The specific impact is unknown. In any case, the British e -commerce environment will definitely change again. British e -commerce sales are expected to reach $ 199 billion in 2022. Online sales currently account for 26.9%of the overall retail sales, and there are still many opportunities. Any market, any platform, as long as there is a chanceThere are challenges.As the saying goes, be careful to drive for thousands of years. If you want to operate for a long time, remember to operate compliance.
