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For almost the entire month of March, sellers on Pinduoduo's cross-border e-commerce platform Temu were shrouded in the shadow of "warehouses stopping receiving goods." Products were out of stock and were removed from the shelves, and traffic and sales of popular products dropped... The sequelae of Temu's sudden stop of receiving goods at the warehouse were obviously more difficult than sellers imagined. In early April, Temu finally reopened its warehouse. Just when the sellers were preparing to show their skills, Temu once again performed some operations that were incredible to the sellers. After being forced to apply for an emergency stocking order, the seller was fined heavily!
It is learned that in early April, after Temu reopened its warehouse, many sellers reported that they received notifications from Temu staff regarding emergency stocking orders . The notice mentioned that for all stocking lists that have arrived, all ordered items in the stocking list must pass quality inspection and be put on the shelves. - If the quality inspection fails, a penalty will be imposed based on the number of unqualified items * value of goods * 2.
- For stocking orders that have not arrived/have not fully arrived (insufficient shipment volume) before T+6, a penalty of the amount equal to the number of out-of-stock items*value of goods*5 will be imposed;
- When a product triggers both [Time Fulfillment] and [Quality and Quantity Fulfillment] penalties, the higher penalty amount will be applied.
▲ The picture comes from Weibo @Amazon五爷It is worth noting that according to the notice, the minimum fine for goods with higher value is also higher , and the reasons for the fine are not limited to "quality not meeting standards", but also include "insufficient shipment volume" and "shipping timeout". It is understood that this is not the first time that Temu has implemented this type of penalty model after a warehouse explosion. As early as November last year, Temu's investment manager issued a notice restricting the first-order approval when the warehouse was bursting, stating that sellers in the JIT model could put the products on the shelves for sale first after the first-order approval was relaxed, but the time for concentrated delivery to the warehouse after the user places an order cannot exceed 48 hours, otherwise a fine will be incurred. ▲ The picture comes from Pinduoduo investment group In mid-March this year, after Temu warehouse was overwhelmed again, industry insiders also issued a reminder: JIT's emergency stock orders will be fined if they are shipped overdue. ▲ The picture comes from Pinduoduo investment group However, it is worth noting that according to feedback from many sellers, unlike November last year, the sellers who received the fine notice this time were not limited to the JIT model. Some sellers who did not apply for emergency stocking orders and even sellers who have closed their stores also received relevant notices. Based on this, many sellers called Temu’s operation extremely ridiculous: “I did not apply for the so-called emergency stocking order, which was imposed by Temu.” "I closed the store but they continued to place emergency stocking orders for me every day." "This operation will be quite explosive no matter where it is placed..." ▲ The picture comes from a social platform
In addition, Temu has recently been criticized by sellers for more than just the forced fines for emergency stocking orders after the warehouse closure crisis. Temu launched inventory risk control, and many popular products were removed from the shelves!
It is learned that recently, according to industry insiders, Temu is launching an "inventory risk control" and its two major "punishment methods" have been criticized by sellers. First, a seller reported that many popular products were inexplicably selected by the so-called "out-of-stock risk control" and removed from the shelves for 7 days . After consulting customer service, the seller replied that these selected popular products had a history of being out of stock . ▲ The picture comes from a social platform Second, some sellers incurred heavy fines due to products being “out of stock upon arrival” . According to the seller, the value of the products he sold on Temu was 2,000 yuan . However, when the platform was out of stock at the end of March, he received a notice that he was fined 100,000 yuan by the platform for "violation of stock shortage upon arrival . " ▲ The picture comes from Weibo @Amazon五爷Currently, the seller is filing a complaint with the platform. Based on this, many sellers have complained: Temu did not allow shipments, which led to a drop in sales and out-of-stock products. Not only that, after the platform was able to ship, the merchants also sent the goods to the warehouse as soon as possible. However, it even used out-of-stock as an excuse to punish the merchants, forcing them to remove products from the shelves and pay high fines. From the above, it can be seen that the "inventory risk control" adopted by Temu after the warehouse explosion this time, and its handling rules are extremely unreasonable for sellers. In the discussions of many Temu-related articles previously published, many sellers have complained that Temu’s rules change frequently and unclearly, and it is still a relatively "disordered" platform. A senior seller also said: Although the threshold of Temu is low nowadays, it is actually not suitable for novice sellers, nor for sellers who sell high-quality products. Instead, it is more suitable for those sellers who already have the supply chain resources for low-priced products. It is obvious that with the frequent changes and unclear platform rules, there are still only a few sellers who get rich by taking risks. Judging from the current situation, Temu is still walking on the "low-price" road without looking back, and it seems that it will go down this road to the end.
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