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3471Mark Cuban stirred up a lively debate on Saturday with a thread about the struggles U.S.-based e-commerce sellers face against overseas competitors who dodge tariffs, safety testing and taxes—and how platforms like Amazon aren’t doing enough to level the playing field.
“Are importers from China going to be like drug dealers? The tariffs are so high, that it’s worth taking the risk that the goods will be confiscated? Just a cost of business?” Cuban wrote on X.
He said foreign sellers shipping to Amazon fulfillment centers often undervalue their goods to avoid tariffs and face little consequence if caught, as suggested by a former Amazon product manager.
“They can’t arrest you or fine you because you are somewhere in BF China. Worst they can do is confiscate your goods. Like they do to drug mules.”
That post caught the attention of Casey Ames, founder of a company that sells products for kids with special needs on Amazon.
Ames said he’s the only U.S.-based seller in his category and detailed what he has to do to stay compliant: properly declare product values, conduct third-party testing for U.S. child product certification, hold insurance, and pay both income and payroll taxes.
“These tariffs hurt my Idaho-based business, with U.S. employees, more than a China-based company,” he said.
Cuban responded with a bold policy proposal: “Every state in the union should pass a law that any seller on a digital marketplace MUST have a verified American address and must pay all applicable taxes and fees, otherwise it’s illegal and THE MARKETPLACE will be liable for $10k per instance. THIS will accelerate the growth of our online sellers faster than anything.”
The response online was overwhelmingly supportive, with many users echoing the need for serious reforms.
“This is a GREAT idea. Time to level the playing field in the USA and make sure that American companies do not operate at a disadvantage,” wrote journalist Jonathan Greenberg.
Others offered tweaks. Some said requiring platforms like Amazon to be the “importer of record” for goods sold through their fulfillment network would create stronger accountability.
“If it’s inbound solely for their fulfillment network, they bear the responsibility of proper importation,” wrote Janson James.
A few noted that current rules let foreign sellers list fake U.S. business addresses without much oversight.
“Google Maps is flooded with fake companies from overseas that directly violate Google’s rules for listings,” one commenter pointed out.
Still, the consensus was clear: compliant U.S. sellers are tired of being undercut by foreign companies that operate by a different set of rules.
Cuban’s idea of turning enforcement back on the platforms themselves—with real financial penalties—struck a chord.
“Are we finally focusing on the issue instead of just going after current leadership? Keep going,” one user replied.
Cuban, who has spent years investing in American businesses and speaking out on policy issues, hasn’t said whether he plans to push this idea further through legal or political channels.
But the reaction suggests there’s a growing appetite for forcing digital marketplaces to stop turning a blind eye to seller compliance.
“Amazon could help by requiring USA credentials and banks for foreign importers,” Cuban added. “That would give the feds something more than the goods to confiscate.”
For now, sellers like Ames are still waiting for a system that holds everyone to the same standard.
“We can’t lie on our customs documents. I would end up in jail. Not the same for foreign-based sellers,” he said.
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