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Online purchase regulations strengthened
中国加强网上购物监管力度
China has enhanced protection for consumers by issuing new regulations regarding online shopping. Starting Sunday, customers shopping online can return opened goods and get a full re-fund within seven days without having to provide a reason.
To return or change things people buy has always been a headache for buyers AND sellers. Wan Duowen is a Taobao shop owner in Shanghai. She realized that her customers tend to buy more things if her shop provides a "return in 7 days without a reason" service to them. So after just half a year's operation, she decides to welcome returned goods - and her sales has increased 20 percent afterwards.
Wan says that Taobao encourages but does not mandatorily require shops to provide the 7-day-return-without-excuse service, but if they do provide it, their products will get higher ranking on the search list. Though the service provides convenience for consumers, one analyst points out that if customers can return without a reason, then there'll probably be more return cases in online shopping, and that willaffect prices as well.
China's current law on online shopping was put into effect on March 15 last year. It says customers can return the goods they buy online within seven days without excuses, but does not give details on whether the opened items can be returned. And most online retailers have set up their own plan on return policy, saying that returned items should have their packaging intact and remain in the original condition. But the new regulation this year has made it clear that online retailers who refuse or delay to process the returns could be imposed to fines as high as 500,000 yuan.
But sellers also have concerns over the new regulation. Wan says she has never refused any request to return or change goods, but there has been some unreasonbale requests.
China's online shopping sector has been suffering from high return-rate for years, especially during sales peaks like double-11 or black Fridays. Media report that some shops have seen return rate as high as over 60 percent in the double 11 last year.
