Kuaishou Abolishes Refund-Without-Return Policy to Protect Merchants
Chinese short-video platform Kuaishou announced on November 28 that it will discontinue its refund-without-return service for merchants on its e-commerce platform, effective December 2. This strategic decision aims to refine after-sales services and address persistent complaints from merchants who argued the policy facilitated abuse by fraudulent consumers, often referred to as sheep-shearers. The move reflects Kuaishou's effort to balance consumer convenience with merchant profitability, reducing financial losses caused by unreasonable refund requests. While the specific refund-without-return option is being removed, the platform retains a stricter Refund Only policy that requires merchant consent under specific conditions. Under new rules, automatic refunds will still occur if merchants fail to ship goods or respond to requests within designated timeframes. The refund-without-return model, originally popularized by Amazon and adopted by competitors like Pinduoduo and Douyin in China, has faced criticism for favoring buyers at the expense of sellers. This adjustment aligns with broader industry trends seeking to mitigate the negative impacts of aggressive consumer protection policies on business sustainability within the Chinese e-commerce sector.
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Kuaishou Abolishes Refund-Without-Return Policy to Protect Merchants
Chinese short-video platform Kuaishou announced on November 28 that it will discontinue its refund-without-return service for merchants on its e-commerce platform, effective December 2. This strategic decision aims to refine after-sales services and address persistent complaints from merchants who argued the policy facilitated abuse by fraudulent consumers, often referred to as sheep-shearers. The move reflects Kuaishou's effort to balance consumer convenience with merchant profitability, reducing financial losses caused by unreasonable refund requests. While the specific refund-without-return option is being removed, the platform retains a stricter Refund Only policy that requires merchant consent under specific conditions. Under new rules, automatic refunds will still occur if merchants fail to ship goods or respond to requests within designated timeframes. The refund-without-return model, originally popularized by Amazon and adopted by competitors like Pinduoduo and Douyin in China, has faced criticism for favoring buyers at the expense of sellers. This adjustment aligns with broader industry trends seeking to mitigate the negative impacts of aggressive consumer protection policies on business sustainability within the Chinese e-commerce sector.
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