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Recently, the e-commerce platform Benefit officially announced that it would end its operation, which sparked speculation and discussion among netizens. Some have blamed this on the negative impact of the refund-only rule. According to some cases, the abuse of refund-only has led merchants to take the road to legal action. Refunds alone have become easier, and merchants are facing more and more e-commerce rights enforcement cases. It remains to be seen whether this rule violates the law and whether it will be rectified. The negative effects of refunds alone are emerging, and it is difficult to determine whether JD will be able to make good use of this rule. However, if used incorrectly, it can offend a large number of merchants, further accelerate the closure of merchants, or push merchants to the Pinduoduo platform.
Refund-only as a convenient consumer protection measure should be widely recognized and supported. However, the abusive behaviour of some consumers has led to a number of problems. On the one hand, the white prostitution party obtains improper benefits through multiple refund applications and threats and abuse, causing losses and distress to merchants and platforms. On the other hand, in order to avoid being refunded, some merchants have begun to take legal measures to protect their rights and interests, resulting in an increasing number of referees. Overall, the negative effects of refund-only are emerging, and e-commerce platforms and related legal industries need to think about how to find the right balance to ensure the rights and interests of consumers while reducing the occurrence of abuse and judicial disputes.
As a newcomer to the e-commerce industry, Pinduoduo's success doesn't just depend on the refund only feature. Pinduoduo's ability to attract more merchants and users is mainly due to the success of its social e-commerce model. Pinduoduo has attracted a large number of users and formed a positive cash flow by launching strategies such as the group model and tens of billions of subsidies. Unlike ** and JD.com, Pinduoduo pursues positive cash flow, not profits. As a result, Pinduoduo's commission rates are relatively low, and merchants' operating costs are also low, which has become one of the important reasons why merchants choose to sell goods on the Pinduoduo platform. While refund-only is one of Pinduoduo's biggest killer moves, it's not the core reason for its success. **If JD.com wants to learn to refund only, the key is whether it can be truly fair and whether it can prevent abuse through technical means.
For other e-commerce platforms, the refund-only rule can become a pitfall. Originally, it was difficult for small and medium-sized merchants to survive on Pinduoduo due to high operating costs, but the refund-only rule made them face a greater dilemma on other platforms. If the merchant can't make money and is under pressure to only refund money, they may be forced to leave the platform or close the store. Therefore, other e-commerce platforms need to think about how to keep the basic market of merchants and provide a better operating environment and commission policies to attract and retain merchants. At the same time, when formulating rules, platforms also need to balance the interests of merchants and consumers, so as to avoid over-protecting consumers and ignoring the rights and interests of merchants.
In short, refund-only as a rule to protect consumer rights is well-intentioned. However, the emergence of abusive behaviors and negative effects has caused e-commerce platforms and related legal industries to face a series of challenges. All platforms should find a solution as soon as possible to ensure that the rights and interests of consumers are not infringed upon, while safeguarding the legitimate rights and interests of merchants. In addition, e-commerce platforms also need to think about how to provide a better operating environment and policies to attract and retain merchants, and prevent merchants from collectively moving to other platforms or closing stores. Only by balancing the interests of consumers and merchants can e-commerce platforms develop sustainably and healthily.
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