Chinese e-commerce giant Pinduoduo updates rules to kick out sellers of shoddy products
A PDD executive said in a recent post-earnings call that the company is willing to sacrifice short-term profits for long-term health
Chinese e-commerce platform Pinduoduo will start removing sellers of counterfeit products from its multibillion yuan subsidy programme, as its operator – Temu owner PDD Holdings – and major rivals make operational changes in response to Beijing’s “anti-involution” call.
Pinduoduo on Monday updated its rules for merchants taking part in its subsidy programme, stating that the platform would take punitive measures, including permanent bans, on those selling “fake products” or other goods that fail to meet quality standards, according to a report by Chinese media Beijing Business Today.
The new rule is expected to take effect next Tuesday.
Pinduoduo did not immediately reply to a request for comment on Tuesday.
Pinduoduo rolled out its multibillion-yuan subsidy programme in mid-2019, a move that has helped the latecomer solidify its position in China’s small towns, where consumers tend to be more price-sensitive.
The latest change appears to target so-called white-label products – extremely cheap products of poor quality – which the platform has been relying on to quickly gain market share amid a trend of consumption downgrading over the past few years.
On-demand food delivery giant Meituan, another major Chinese e-commerce player, is also working to screen out merchants that pretend to have an offline presence or those that forge business certificates.
