News Brief
Business
Taobao in Trouble
CFP
China’s largest online shopping website Taobao’s B2C platform Taobao Mall (Tmall) has met with strong protests from thousands of small-scale merchants after it announced a rate increase on October 10.
According to the new rule, Tmall will increase membership fees for merchants from 6,000 yuan (US$945) to 30,000-60,000 yuan (US$4,750-9,450), and also raised the deposit amount for membership to at least 50,000 yuan (US$7,840).
Complaining that the rate rise has priced them out of the market, small-scale merchants vented their anger by attacking larger competitors by bulk-buying products before demanding refunds or filing complaints to interrupt trading.
Despite the protest, Jack Ma, Taobao’s president, expressed his support for the new rules, which, according to him, are designed to “improve service.” Tmall will refund part or all of the annual fee to the merchants based on the size of their businesses and quality appraisal.
Experts have attributed the conflict to China’s lack of regulation of e-commerce, calling for government authorities and trade committees to draft a new set of rules.
Advertisment
Sign-Up for the News China Email Update
Every month you"ll receive the latest stories from the most recent issue of News China.
Reader Photo
Badeling Pass | Beijing
Sep 2011 | Submitted by Brian Snelson
Or send photos to newschinaphotos@gmail.com
Please include your name, location and date of photo
Advertisement
