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Taobao recently announced a major optimization of its "refund only" policy. Beijing Youth Daily reporters learned that the new policy reduces after-sales intervention on high-quality stores, gives merchants greater autonomy, and relies on big data and intelligent systems to simplify the refund process and improve efficiency.

Phenomenon

Some people take advantage of "refund only"

The launch of the "refund only" service was originally intended to protect the rights and interests of consumers and reduce unnecessary returns, such as the inconvenience of returning fresh food and some low-priced goods whose value is lower than the shipping cost. This policy has greatly improved the shopping experience of consumers, reduced the cumbersome procedures caused by returns, and encouraged consumers to place orders. In 2021, Pinduoduo took the lead in launching the "refund only in special circumstances" mechanism in China. In September 2023, Douyin e-commerce updated the rules on "refund only". In the same year, the Taobao platform also changed its dispute handling rules and added relevant provisions on "refund only". The JD platform also added execution standards that support refunds without returns in the transaction dispute rules. Subsequently, Kuaishou also launched the "refund only" service.

While protecting the interests of consumers, the “refund only” policy also brings troubles to merchants. Many merchants said they had encountered malicious “refund only” policies—some consumers took advantage of platform loopholes to obtain improper benefits. Moreover, some buyers who could have returned the goods for a refund would choose to only refund the goods under the platform’s intervention, causing the merchants to bear additional costs for the loss of goods.

Case

Merchants defend their rights and demand compensation from the platform

E-commerce analyst Zhuang Shuai believes that when "refund only" is opened to all categories, the attributes of different categories will cause loopholes in the original rules.

Beijing Youth Daily reporters learned that there have been many cases where businesses have sought redress from consumers who maliciously "only refunded" their money.

According to reports, a buyer was sued by the seller after buying clothes worth 11.96 yuan online and only received a refund. After mediation by the court, the buyer finally returned the 11.96 yuan and paid 800 yuan for the merchant's rights protection costs. Some people believe that the merchant's action of suing for 11 yuan is aimed at combating the dishonest behavior of some "wool-pulling parties" and reminding other merchants not to tolerate such buyers.

Another shop owner, Mr. Chen, who runs a women's clothing online store on an e-commerce platform, said that he encountered a consumer who, after buying a dress, claimed that the product had quality problems (lacking lace) and applied to the platform for a "refund of only 20 yuan." The platform intervened and approved the refund in a very short time without any communication with the merchant, Mr. Chen.

Mr. Chen believes that when there are quality problems with the goods, the store supports the "return and refund" process, but the platform directly refunds him without notifying him, which is unfair to him.

Mr. Chen therefore filed a lawsuit with the Shanghai Changning Court, demanding that the platform compensate him for the 20 yuan loss caused by "only refunding". The first instance court supported Mr. Chen's claim, believing that the platform did not give the merchant a reasonable response and evidence time, and violated the merchant's right to deal with after-sales issues equally with consumers.

Initiatives

Determine whether to "refund only" based on big data

These cases remind merchants and consumers that fairness and integrity are the basis for maintaining the rights and interests of both parties in e-commerce transactions. Merchants should actively protect their own rights and interests, and consumers should use the "refund only" policy within a reasonable range to avoid abuse. On July 26, Taobao announced that it would optimize the "refund only" function, reduce or cancel after-sales intervention for high-quality stores, and give merchants more autonomy.

A reporter from Beijing Youth Daily found that the changes in Taobao's "refund only" policy before and after optimization are mainly reflected in two aspects. First, the process is simplified: Taobao uses big data and intelligent systems to automatically determine whether "refund only" is supported. If the system evaluates that there is a problem with the product, Taobao will automatically pop up the "refund only" option, making the refund process faster and more convenient. Consumers can get a refund quickly if they meet the conditions, without waiting for the return process, and the refund process is faster and more efficient. Second, the policy is stricter: Taobao combines single or multiple dimensions such as platform penalties at the information or product level, seller store quality indicators (such as quality points), a large number of customer complaints on the buyer side, and perception of counterfeit problems to form a comprehensive evaluation of the goods sold by the seller. This comprehensive evaluation helps to more accurately determine whether there is a problem with the product, thereby supporting "refund only". For high-quality stores, Taobao has also reduced or cancelled after-sales intervention, allowing merchants to handle refund matters more independently. This means that merchants can choose whether to support "refund only" based on their own judgment and circumstances.

Regarding Taobao's new initiative, some merchants said that they will have greater autonomy when dealing with "refund only" after-sales issues and will be able to better protect their own rights and interests.

Some consumers said, "We were worried that in order to protect profits and original profit margins, merchants would directly pass on the money lost from the 'freeloaders' to ordinary consumers like us." After Taobao optimizes its policies, the phenomenon of "freeloaders" abusing the "refund only" policy to "get freeloaders" is expected to be curbed.

Zhuang Shuai said that Taobao has continuously upgraded the new experience score system in the actual operation of the platform and merchants, avoiding the harm of "wool parties" and malicious competitors to high-quality merchants. At the same time, it also helps ordinary consumers to better identify high-quality products before shopping and better avoid frequent returns.

Article by our reporter Wen Jing, intern Qian Hanqing

Co-ordination/Yu Meiying Photo/Visual China