BEIJING (dpa-AFX) - The e-commerce platform Temu, owned by PDD Holdings Inc. (PDD), is facing backlash from Chinese suppliers due to strict fines and refund policies, according to reports from merchants and local Chinese media.
The platform, which offers budget-friendly items such as $10 dresses and sneakers, as well as $15 mattresses, has been criticized by suppliers for imposing increasing fines on Chinese merchants. Recently, a group of around 80 merchants protested at the PDD office in Guangzhou, seeking to meet with top executives but were unable to secure an audience.
The dissatisfaction among merchants stems from Temu's policies, which penalize them for refund requests and customer complaints. Fines are imposed for various issues, from packaging problems to discrepancies between products and their online descriptions. This has led to frustration among suppliers, with one merchant reporting that he was fined a significant amount for customer refunds and complaints, leading to substantial losses in profits.
In addition, Temu's competitive environment has compelled merchants to cut prices and offer the best deals on the platform. Some suppliers have expressed concerns about the impact on their businesses, with one mobile phone seller reporting significant losses due to fines and unpaid amounts for sold products. The seller also highlighted the challenge of Temu's no-return refund policy, which led to substantial losses and is still awaiting reimbursement, according to the Financial Times.
Overall, the strict policies and fines imposed by Temu have led to growing dissatisfaction among Chinese suppliers, with many expressing their grievances and concerns about the impact on their businesses.
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