The other side of Temu: suppliers against the e-commerce giant over non-refunded products
At the Guangzhou headquarters of the e-commerce giant for made-in-China products, hundreds of shopkeepers staged a protest that led the company to request police intervention. At the root of the discontent are trade policies that impose heavy penalties for products criticised by consumers and the policy of refunds without returns that passes the entire cost on to suppliers.
Beijing (AsiaNews/Agencies) - Hundreds of local suppliers of Temu, the overseas shopping app run by Chinese multinational PDD Holdings, staged a protest at the e-commerce giant's headquarters in Guangzhou, denouncing the platform's unreasonable policies.
Dozens of protesters stormed PDD's office on Monday afternoon, according to videos posted on social media and confirmed as authentic by the traders. Chinese media outlet Yi Magazine reported on Tuesday that about 80 traders entered the PDD office, but left after the police intervened.
This is not the first time traders have protested against Temu. ‘They were unhappy with how Temu handled after-sales issues related to the quality and compliance of their products, disputing an amount of several million yuan,’ reads a company statement that does not directly refer to the 29 July protest. ‘The situation is stable and the company is actively working with the traders to find a solution,’ the note continues.
The actions of Chinese suppliers could increase the uncertainty around Temu, which today also has to deal with import duties imposed by the US and the European Union. Temu competes with Shein and TikTok Shop, as well as Alibaba Group's AliExpress, in selling made-in-China products directly to foreign buyers.
With massive online advertising campaigns, Temu is expanding its sales to consumers in the US and other foreign markets at bargain prices. But many Chinese suppliers complain about the heavy ‘fines’ imposed on them if customers complain or ask for refunds. Temu allows consumers to keep items refunded because of the high cost of returning goods, but some merchants have stated that they have not received any refunds in such cases.
A Guangzhou-based trader told the South China Morning Post that he had made 40 million yuan (US.5 million) in sales on the platform last year, but had been fined 3 million yuan by Temu due to refunds and customer complaints, thus wiping out almost all of his profits.
A mobile phone seller based in Shenzhen claimed to have suffered losses of about USD 80,000 through Temu, including fines and unpaid funds for products sold. To which should be added a loss equivalent to about 200 units of smartphones due to the no-return refund policy. The trader pointed out that Temu can fine traders up to five times the sales value of the product.
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09/07/2007
