Mandatory Instant Refunds: Chinese TikTok Wades into E-Commerce Rivalry – South China Morning Post
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TikTok Rivals Bet Big on E-Commerce with Mandatory Express Refund Policy
As more and more platforms compete fiercely for Chinese consumers’ attention, a recent policy shift from Douyin – the Chinese version of TikTok – has made waves in the online shopping industry. Mandatory “express refunds” for buyers are now being enforced, a trend that other e-commerce platforms are following in a bid to become more consumer-friendly.
What is Douyin’s Express Refund Policy?
The newly established “express refund” policy from Douyin – the Beijing-based platform operated by ByteDance – gives users the ability to get a full refund as soon as they mail their returned product back. There is no option to turn the service off, and merchants must immediately return money when asked. The service, first introduced in 2019, is limited to 1,500 yuan per item, and customised products and non-tangible goods such as memberships are excluded.
Pinduoduo Sets the Pace With ‘Refund Without Return’ Policy
Pinduoduo, a budget shopping app, was the first major e-commerce website to introduce its own similar version back in 2021. The policy, known as ‘refund without returns’ or ‘refund without reason’, has been a game-changer in luring price-sensitive Chinese consumers away from competitor markets. With online retail sales of tangible goods growing 8.3% in the first 11 months of 2023, according to the National Bureau of Statistics, other major players are following suit and implementing refund policies in their own strategies.
Alibaba and JD.com Follow the Refund blueprint
Faced by the surge in popularity of Pinduoduo, search engine giant Alibaba has been trying to meet consumer expectation with the same competitive approach as its weaker rival. Last December, the influential corporation promoted six young managers to run its core e-commerce business in a bid “reignite their entrepreneurial spirit”. In a similar move, JD.com is also taking steps towards offering a full refund service.
Clickbaiter Style Titles:
-The Refund Revolution: How a Single Policy is Shifting the E-Commerce Game
-TikTok Rivals Are Cash Cashing in on Express Refunds: Here’s How
-Under Pressure? Find out How Big-Name E-Commerce Companies are Leveling the Playing Field With Mandatory Refunds