Global E-commerce Newsletter Issue 17

1. Chinese e-commerce firms 京东 and 阿里巴巴集团 ’s 淘宝 roll out ‘refund only’ policy to shoppers, heating up rivalry with budget retailer Pinduoduo (28 Dec 2023)

China's e-commerce competition is intensifying as 京东 and 阿里巴巴集团 's 淘宝 introduce a "refund only" policy, allowing consumers to keep items they complained about. This move mirrors a policy already in place at budget online retailer Pinduoduo since 2021. 京东 's updated rules, effective December 29, empower the platform to intervene in disputes over items that do not match product descriptions. Taobao's similar policy covers misleading information and fraudulent goods. Pinduoduo's controversial "refund only" policy has contributed to its rapid growth, creating challenges for 京东 and Taobao in attracting and retaining customers (Iris &? Ben, 2023).

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2. 500,000 farming households supported to display products on e-commerce platform (28 Dec 2023)

The eighth National Congress of the Vietnam Farmers' Union concluded by announcing the Central Executive Committee for the 2023-2028 term, with Mr. Luong Quoc Doan re-elected as Chairman. Notably, the Congress outlined key goals, including supporting 500,000 farming households in displaying their agricultural products on e-commerce platforms. This strategic move aligns with the union's focus on leveraging digital channels for the promotion and sale of farmers' goods. The Congress aims to enhance the presence of farmers in the digital marketplace, fostering economic growth and connectivity in the agricultural sector (SGGP, 2023).

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3. 亚马逊 Prepares for South African Marketplace Launch (31 Dec 2023)

亚马逊 is advertising 50 full-time positions and one seasonal job opening in South Africa, in preparation for the launch of its online marketplace, Amazon.co.za, in 2024. The roles include a customer service lead, B-BBEE senior program manager, transportation and fulfillment manager, and various vendor and supply chain positions. Over 60% of 亚马逊 's platform sales come from independent sellers, and South African sellers can now register on the Amazon seller portal. Despite challenges, 亚马逊 aims to provide local sellers with opportunities for growth. The launch will face competition from Takealot.com, and 亚马逊 will be subject to competition requirements imposed by the Competition Commission (BusinessTech, 2023).

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4. 亚马逊 India’s logistics unit sees revenue fall marginally (29 Dec 2023)

AMAZON TRANSPORTATION SERVICE PRIVATE LIMITED (ATS), the Indian shipping arm of Amazon, experienced stagnant growth in the fiscal year ending March 31, 2023. The operating revenue fell marginally to Rs 4,543 crore from Rs 4,571 crore in FY22, with a net loss narrowing slightly to Rs 86 crore from Rs 95 crore. This mirrors a broader deceleration in 亚马逊 's India businesses, as the parent company reduces cash burn. Amazon Seller Services, the marketplace business in India, reported a modest 3% growth in operating revenue to Rs 22,198 crore. Amazon Pay India's revenue grew by around 5% to Rs 2,093 crore in FY23. ATS, which received a total infusion of Rs 775 crore from 亚马逊 in FY23, has expanded its logistics infrastructure to handle non-Amazon orders, competing with companies like Xpressbees (BusyBees Logistics Solutions Pvt. Ltd.) , Delhivery , and Ecom Express Limited . Despite a slowdown in investments from its parent company in FY24, 亚马逊 noted that its e-commerce business in India is generating sufficient revenues to support infrastructure and logistics investments (The Economic Times, 2023).

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5. China's 阿里巴巴集团 must face a US toymaker's lawsuit over sales of allegedly fake Squishmallows (28 Dec 2023)

阿里巴巴集团 , China's largest e-commerce company, must face a lawsuit filed by U.S. toymaker Kelly Toys Holdings, LLC , as ruled by a judge in New York. The lawsuit alleges that 阿里巴巴集团 's online platforms were utilized to sell counterfeit Squishmallows, popular plush toys produced by Kelly Toys Holdings, LLC . Despite 阿里巴巴集团 's attempt to have the case dismissed based on technicalities, the judge deemed the claims made by Kelly Toys Holdings, LLC plausible. The toymaker contends that the sale of fake Squishmallows persisted on 阿里巴巴集团 's platforms despite prior legal actions seeking to halt such activities (ABC News, 2023).

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References

ABC News. (2023, December 28). https://abcnews.go.com/Business/wireStory/us-court-rejects-chinese-ecommerce-giant-alibabas-effort-105960488

BusinessTech. (2023, December 31). 50 full-time positions Amazon is looking to fill in South Africa. https://businesstech.co.za/news/business/739091/50-full-time-positions-amazon-is-looking-to-fill-in-south-africa/

The Economic Times. (2023, December 29). Amazon India’s logistics unit sees revenue fall marginally to Rs 4,543 crore. https://economictimes.indiatimes.com/tech/technology/amazon-india-logistics-arms-fy23-growth-stagnates-revenue-falls-marginally-to-rs-4543-crore/articleshow/106376054.cms

Iris, D., & Ben, J. (2023, December 28). JD.com, Alibaba’s Taobao push “refund only” policy to rival Pinduoduo’s strategy. South China Morning Post. https://www.scmp.com/tech/big-tech/article/3246559/chinese-e-commerce-firms-jdcom-and-alibabas-taobao-roll-out-refund-only-policy-shoppers-heating

SGGP. (2023, December 28). 500,000 farming households supported to display products on e-commerce platform. SGGP English Edition. https://en.sggp.org.vn/500000-farming-households-supported-to-display-products-on-e-commerce-platform-post107272.html

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