Ending 'Refund Only': A Shift Away from Overwork and Intense Competition
26 April 2025 · Uncategorized ·
On April 22, reports surfaced indicating that major e-commerce platforms, including Pinduoduo, Taobao, Douyin, Kuaishou, and JD.com, will comprehensively abolish the "refund only" policy. This change means that consumers requesting refunds without returning purchased goods after receiving them will be handled at the sellers' discretion. Initially designed to protect consumer rights, the "refund only" rule proved overly idealistic, failing to account for complexities in human behavior and leading to widespread abuse. Individuals exploited the policy by fabricating reasons to obtain refunds without returning items, resulting in substantial losses for sellers and even fostering a gray market chain built on exploiting this loophole. This has led to legal disputes initiated by merchants and, in some cases, the pursuit of fraudulent customers over long distances. Data reveals a significant increase in brand store return rates, rising from 24% in 2021 to 35% in the first half of 2024, with some platforms reporting rates as high as 60%. This consumer-centric approach has eroded trust between merchants and users, damaging platform reputations. Ultimately, the intense workload and excessive competition fostered by the "refund only" rule have proven unsustainable.
Last year’s central political bureau meeting emphasized industry self-regulation to curb “overwork and excessive competition,” while this year’s government work report prioritized a comprehensive crackdown on such practices. Recently, national regulatory bodies have explicitly stated their intention to address platform abuse of refund rules, which has resulted in significant losses for merchants. The core principle of any transaction is fairness, and platforms should primarily provide a level playing field. Four years of experience with the "refund only" policy have demonstrated the difficulty of achieving a balanced and mutually beneficial outcome for all parties involved.
In reality, consumers desire authentic products and attentive service, not excessive protection through a lenient refund policy. If issues like incorrect items or quality problems can be resolved through standard return procedures, the "refund only" option becomes unnecessary. A scientifically sound platform rule is an integral part of business environment optimization, a process that inherently involves iteration and refinement.
China’s entry into e-commerce occurred in 1999, and over two decades later, it has become the world’s largest online retail market for consecutive years. During this period, numerous management systems and industry rules have been established; the widely accepted "seven-day no-reason return" policy being a notable example. While the "refund only" rule was well-intentioned, its practical implementation has exposed numerous issues that require timely correction.
Excessive competition can stifle innovation, lead to inefficiency, and hinder development. Eliminating the "refund only" policy allows for a return to healthy competition, safeguarding merchants' operational autonomy and initiative, and thereby promoting the healthy growth of e-commerce. This move extends beyond just canceling the "refund only" rule; addressing issues like price wars also necessitates a shift towards value creation through technological innovation, systemic optimization, and brand upgrades.
Last year’s central political bureau meeting emphasized industry self-regulation to curb “overwork and excessive competition,” while this year’s government work report prioritized a comprehensive crackdown on such practices. Recently, national regulatory bodies have explicitly stated their intention to address platform abuse of refund rules, which has resulted in significant losses for merchants. The core principle of any transaction is fairness, and platforms should primarily provide a level playing field. Four years of experience with the "refund only" policy have demonstrated the difficulty of achieving a balanced and mutually beneficial outcome for all parties involved.
In reality, consumers desire authentic products and attentive service, not excessive protection through a lenient refund policy. If issues like incorrect items or quality problems can be resolved through standard return procedures, the "refund only" option becomes unnecessary. A scientifically sound platform rule is an integral part of business environment optimization, a process that inherently involves iteration and refinement.
China’s entry into e-commerce occurred in 1999, and over two decades later, it has become the world’s largest online retail market for consecutive years. During this period, numerous management systems and industry rules have been established; the widely accepted "seven-day no-reason return" policy being a notable example. While the "refund only" rule was well-intentioned, its practical implementation has exposed numerous issues that require timely correction.
Excessive competition can stifle innovation, lead to inefficiency, and hinder development. Eliminating the "refund only" policy allows for a return to healthy competition, safeguarding merchants' operational autonomy and initiative, and thereby promoting the healthy growth of e-commerce. This move extends beyond just canceling the "refund only" rule; addressing issues like price wars also necessitates a shift towards value creation through technological innovation, systemic optimization, and brand upgrades.