Core Viewpoint - The article highlights the increasing issue of consumers exploiting return policies in the e-commerce sector, particularly during the "May Day" holiday, leading to significant losses for merchants due to high return rates and operational costs [1][4][5]. Group 1: Impact of Return Policies - Return rates have skyrocketed, with reports indicating rates exceeding 300% during peak periods, meaning for every three items sold, nine were returned [15]. - Merchants face "invisible losses" as returned items often arrive with stains and signs of use, complicating resale and increasing operational costs [4][9][22]. - The phenomenon of consumers keeping tags on clothing to exploit return policies has become a widespread issue, leading to a culture of "white-washing" [17][19]. Group 2: Merchant Responses - Merchants are beginning to take action against these practices, including refusing returns, seeking legal recourse, and organizing collective actions to protect their interests [25][26]. - Some merchants have resorted to blocking buyers from high-return areas, reflecting a desperate measure to mitigate losses [26]. - The rise in awareness and action among merchants indicates a shift towards more proactive measures in defending against exploitative consumer behavior [25][30]. Group 3: Regulatory and Platform Changes - The government has started addressing the issue, with the State Administration for Market Regulation discussing the need for reforms in e-commerce return policies to protect merchants [29][30]. - E-commerce platforms are also adapting their policies, with some limiting the "no-questions-asked" return options to better balance consumer rights and merchant protection [30][31]. - Proposed changes include clearer definitions of what constitutes a returnable item and the establishment of penalties for consumers who abuse return policies [32].