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The 618 shopping festival has finally come to an end, with varying feelings among platforms, merchants, and consumers - some rejoicing while others feeling dismayed.

Based on the performance reports released by various platforms, it seems that the sales figures are quite impressive. However, many merchants have expressed that fierce price competition and unfair return policies have left them in a difficult situation, even suffering losses. Consumers, on the other hand, have benefited from the price competition but also faced issues with low-quality products at discounted prices.

The rise of e-commerce initially aimed to provide consumers with cost-effective shopping experiences. However, if the drawbacks of low-price competition and return policies are not addressed, the legitimate interests of merchants will be infringed upon, and the entire e-commerce ecosystem will suffer severely.

01

Intense Price Competition,

Many Merchants Face Challenges

The 618 shopping festival has concluded, and the battle reports are out.

Taobao and JD.com were the first to disclose their data. As of 24:00 on June 18th, the transaction volume of 1.9 million small and medium-sized Taobao merchants increased by over 100% year-on-year, more than doubling the number compared to last year. JD.com's latest data also shows that the transaction volume and order volume of JD.com's 618 shopping festival in 2024 reached new highs, with JD.com live streaming orders increasing by over 200% year-on-year.

Comprehensive data indicates that the total sales of live streaming e-commerce platforms such as Douyin and Kuaishou during this year's 618 promotion reached 206.8 billion yuan. Comprehensive e-commerce platforms like Pinduoduo, Tmall, and JD.com achieved a total sales volume of 571.7 billion yuan, a year-on-year decrease of 6.9%. The total sales of instant retail reached 24.9 billion yuan, and community group buying sales were 13.9 billion yuan.

However, despite the impressive sales figures, not everyone is happy. Many merchants have expressed: "This year's 618 promotion is really intense. The platforms don't care about the survival of merchants at all." Among the complaints from merchants, the endless price competition stands out. Live streaming e-commerce has maximized the efficiency of low-price group buying, and other comprehensive e-commerce platforms have also engaged in price competition, using slogans like "the lowest price on the internet, no fear of comparison" to compete for consumers.

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Many merchants have found that their products are frequently discounted by the platforms without their knowledge. After various mechanisms are stacked, the final transaction price is significantly reduced. Although the sales volume of products has increased year-on-year, the profit margin is often negative. Some e-commerce platforms have seen a surge in order volume this year, but their sales have declined year-on-year, seemingly due to this practice of sacrificing profit for order volume.

Moreover, the endless pursuit of lower prices has led some merchants to compromise on product quality. Combined with the various return policies introduced by platforms to please consumers, this has resulted in high return rates, causing merchants to suffer.

02

High Return Rate,

Who Is Responsible?

Apart from price competition, the return rate of products during this year's 618 shopping festival was also