Since 2021, Chinese e-commerce platforms have been encouraging a policy that provides refunds to consumers without the return of the goods sold. This is called “refund only” (仅退款). However, since last year, an increasing number of cases have been reported where customers are abusing the rules, deliberately asking for “refund only” after receiving the item with the intention of keeping both the merchandise and the funds. Now, after 4 years, all e-commerce platforms in China have given up on the no-return refund policy.
Since the 618 shopping festival last year, platforms have been scaling back the use of the policy. During the Two Sessions congressional meetings, market authorities also suggested ending the practice in the face of abuse. Finally, on 22 April, it was reported that PDD, Taobao, JD.com, Douyin, Kuaishou and other platforms are completely phasing out the option. However, customers in China can still arrange a no-return refund with merchants, should both parties agree on the terms.
- #电商平台全面取消仅退款 All e-commerce platforms end refund-only policy: 240 million views on Weibo, ranking number 1 on the Hot Search list
- #仅退款 Refund only: 98.68 million views on Weibo, ranking number 1 on the Hot Search list
This is, of course, a move to protect merchants’ rights and is part of the general trend of “anti-involution” (反卷, or 反内卷, anti-fruitless competition) in the e-commerce space. Most netizens support the move, while others say they’ve never used the policy. There are also concerns about customers’ rights, especially around whether merchants will provide return postage. How platforms plan to compete is worth watching, especially when another 618 festival is around the corner.
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