Chinese Merchants Protest Against Temu’s Fining Policies
Temu merchants seem to think that, when it comes to financial penalties, it’s a fine line between business and bully.
Chinese sellers offering goods at ultra-low prices on Temu are taking a stand against the company’s practices around issuing fines, the South China Morning Post (SCMP) reported.
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According to the Bloomberg, hundreds of protestors gathered at Pinduoduo’s headquarters in Guangzhou, China, to protest on Monday afternoon. Videos show the protestors not only stood outside the office, but also entered it, staging a sit-in of sorts in the hallways. Yi Magazine, a Chinese publication, reported that 80 protesters went into the office, leaving when police interjected.
Bloomberg reported that the reason behind protestors’ actions came from increasingly harsh fines imposed on sellers by Temu. According to Coinlive, sellers have begun to complain that Temu takes a share of their profits over quality issues, inability to meet shipping deadlines and more. But, for many, hefty fines seem to be making their stints on the marketplace less and less valuable.
In a statement, a Temu spokesperson told Sourcing Journal via email that a protest occurred “recently.” The company did not directly clarify whether its statement pertained to the July 29 protest or to others that have gone on over the past month.
“Recently, a group of merchants gathered at the office of a Temu logistics affiliate in Guangzhou. This group included about a dozen sellers, most of whom are clothing sellers who also operate on Shein. They were unhappy with how Temu handled after-sales issues related to the quality and compliance of their products, disputing an amount worth several million yuan,” the spokesperson said. “These merchants have declined to resolve the disputes through the normal arbitration and legal channels stated in the seller agreements. The situation is stable, and the company is actively working with the merchants to find a solution.”