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03 Jan ByteDance’s Douyin makes instant refunds mandatory, following PDD, Taobao and JD.com amid fierce e-commerce competition
E-commerce platforms are turning to policies known as “refund without returning the cargo” or “refund without reason” as part of a push to be more consumer-friendly at the expense of merchants amid intensified competition. Online retail sales of tangible goods in China increased 8.3 per cent in the first 11 months of 2023, according to the National Bureau of Statistics.
JD.com, Alibaba’s Taobao push ‘refund only’ policy to rival Pinduoduo’s strategy
JD.com, Alibaba’s Taobao push ‘refund only’ policy to rival Pinduoduo’s strategy
The policy of allowing refunds without returns has started to gain favour as platforms look for any possible edge over rivals.
Douyin has offered refunds without returns since September.
Douyin’s new refund service is not available for customised products or non-tangible goods such as memberships. Instant refunds are also limited to 1,500 yuan (US$211).
Alibaba has been facing a new sense of urgency to win back consumers after PDD overtook China’s e-commerce king in market capitalisation. Alibaba was valued at US$190.2 billion on the New York Stock Exchange on Tuesday, lower than PDD’s US$193.5 billion on the Nasdaq.