Investment Rating - The report does not explicitly provide an investment rating for the e-commerce industry Core Insights - The fourth quarter is the most critical operational peak for e-commerce merchants, supported by various platforms like JD, Taobao, Pinduoduo, and Douyin through promotional activities and resources [5] - Intense competition for advertising during key events like "Double 11" and "New Year Goods Festival" may increase customer acquisition costs and marketing expenditures [5] - Merchants face pressure on profit margins due to fierce price competition and evolving platform policies, requiring continuous adaptation to maintain traffic support [5] - A significant complaint from merchants involves issues like arbitrary refunds and excessive consumer protection measures, leading to widespread dissatisfaction [5][6] Overall Data Complaint Platform Distribution - The distribution of complaints across platforms in Q4 is as follows: Douyin E-commerce (38.75%), Pinduoduo (33.55%), Taobao (10.92%), JD (2.08%), and others [7] Complaint Issue Type Distribution - The main types of complaints include: arbitrary refunds (37.09%), excessive consumer protection (19.97%), withholding deposits (9.99%), arbitrary fines (9.73%), arbitrary store closures (2.72%), and mandatory shipping insurance (0.52%) [10] Complaint Regional Distribution - The top 10 regions for merchant complaints are Guangdong (23.86%), Zhejiang (14.53%), Shandong (11.80%), Hebei (6.10%), Jiangsu (5.71%), Henan (5.45%), Fujian (3.76%), Shaanxi (3.50%), Anhui (3.37%), and Hunan (2.72%) [12] Complaint Business Category Distribution - The top 10 business categories for complaints are: apparel (15.95%), 3C digital products (10.64%), fresh food (9.08%), outdoor products (6.49%), home goods (6.36%), personal care (3.89%), home appliances (3.50%), maternal and infant products (2.98%), jewelry (2.46%), and pet supplies (2.33%) [14] Complaint Amount Distribution - The majority of complaint amounts are concentrated in the range of 0-50,000 (95.07%), with smaller percentages in higher ranges [16] Complaint Merchant Responsible Gender Distribution - The gender distribution of complaint merchants shows 70.78% are male and 29.22% are female [17] Platform Data Douyin E-commerce - In Q4, Douyin E-commerce had 298 merchant complaints, with the highest issue being arbitrary refunds (46.64%) [18] Taobao - For Taobao, the main complaint issues are arbitrary refunds (30.95%), excessive consumer protection (28.57%), arbitrary fines (13.10%), withholding deposits (8.33%), and arbitrary store closures (2.38%) [25] Typical Cases - The report includes ten typical complaint cases involving various platforms, highlighting issues such as arbitrary fines, unreasonable penalties, excessive consumer protection, and arbitrary store closures [31]

Core Viewpoint - The report highlights the challenges faced by merchants on e-commerce platforms, particularly focusing on the complaint data from Douyin's e-commerce platform in July, revealing significant issues such as arbitrary refunds and penalties [1][3][23]. Group 1: Complaint Data Analysis - In July, Douyin's e-commerce platform received hundreds of merchant complaints, with the highest complaint type being arbitrary refunds at 46.15%, followed by excessive consumer protection (16.67%), arbitrary fines (15.39%), arbitrary store closures (5.13%), withheld deposits (3.85%), and mandatory shipping insurance (2.56%) [3]. - The top regions for complaints against Douyin's e-commerce platform were Guangdong (23.08%), Shandong (16.67%), and Zhejiang (12.82%) [5]. - The leading categories of complaints were clothing and accessories (16.67%), food and fresh produce (12.82%), outdoor products (7.69%), 3C digital products (6.41%), and beauty products (3.85%) [7]. Group 2: Typical Complaint Cases - Case 1: A merchant accused Douyin of supporting malicious refund practices, where a buyer requested a refund after wearing shoes for several days, leading to significant losses for the merchant [9]. - Case 2: A merchant from Shandong reported an unfair ruling by Douyin after a buyer returned a damaged fishing rod, despite the merchant providing evidence of the product's condition [11]. - Case 3: A merchant faced a fine of 300 yuan due to a buyer damaging a product after delivery, raising concerns about the fairness of the platform's penalty mechanisms [13]. - Case 4: A merchant from Guangdong complained about being forced to refund a damaged product, despite having evidence of the damage upon return [15]. - Case 5: A merchant from Zhejiang received a penalty notice without prior knowledge, claiming no violations had occurred [17]. Group 3: E-commerce Platform Overview - Douyin e-commerce is part of Beijing Douyin Technology Co., Ltd., established in 2016, focusing on providing a platform for users to discover and purchase quality products through engaging content [20]. - The risk rating for Douyin e-commerce is classified as R3+, indicating a high-risk status [22]. - In July, Douyin e-commerce accounted for 24.22% of total complaints across various e-commerce platforms, ranking second after Pinduoduo [23].

Core Insights - The report highlights the complaints received by e-commerce platforms in May 2025, focusing on the challenges faced by merchants on these platforms, particularly on Taobao [1][3][26] - Taobao received a total of 140 merchant complaints in May, with issues primarily related to arbitrary refunds, excessive consumer protection, and unjust penalties [4][10][26] Complaint Data Summary - The report covers various e-commerce sectors including comprehensive e-commerce, live e-commerce, B2B, cross-border e-commerce, and digital life services [3] - The top complaint types on Taobao included: - Arbitrary refunds (40.03%) - Excessive consumer protection (21.74%) - Arbitrary fines (11.59%) - Other issues (10.14%) - Withholding deposits (8.7%) - Arbitrary store closures (5.8%) [4][10][26] Geographic Distribution of Complaints - The top regions for merchant complaints against Taobao were: - Guangdong Province (39.13%) - Zhejiang Province (10.14%) - Sichuan Province (5.8%) - Other provinces including Hubei, Anhui, Jiangsu, and others [7][26] Merchant Categories - The leading categories of merchants filing complaints on Taobao were: - Other categories (36.23%) - Clothing and accessories (17.39%) - Sports goods (11.59%) - Food and fresh produce (8.7%) - Personal care and cleaning products (7.25%) [10][26] Case Studies - Multiple case studies illustrate the nature of complaints, including: - A merchant's complaint about Taobao's handling of a refund request, where the platform allegedly favored the buyer without proper investigation [14] - Another case where a merchant faced an unjust "only refund" decision despite providing evidence of compliance with platform rules [15][16] - A complaint regarding excessive consumer protection leading to unfair treatment of merchants [19] - A merchant's grievance about arbitrary fines imposed by Taobao for alleged harassment, which the merchant contested as unreasonable [21] [28] Overall Complaint Trends - In May, the distribution of complaints across various platforms showed: - Pinduoduo (39.38%) - Douyin (23.57%) - Taobao (17.88%) - Other platforms like JD, Kuaishou, and Meituan had significantly lower complaint rates [26][28]