Core Viewpoint - Douyin E-commerce has launched a "suggest priority recovery" label to help merchants identify consumers with a "high intention to purchase" and encourage them to negotiate returns, repairs, or partial refunds to recover orders, aiming to reduce the return rate [1] Group 1: Douyin E-commerce Initiatives - The new label function is currently available only to select categories of merchants [1] - Douyin E-commerce's initiative reflects a broader trend among e-commerce platforms to address rising return rates, which can negatively impact profit margins and brand reputation [1] - Other platforms, such as Taobao, have also introduced features like "refund analysis" to help merchants understand the reasons behind returns [1] Group 2: Industry Trends - The return rate for e-commerce has been increasing, with a reported compound annual growth rate of 22.7% for reverse logistics from 2019 to 2023, and an expected 20.7% growth from 2023 to 2028 [2] - Douyin E-commerce faces challenges related to high return rates, particularly due to the nature of live commerce and recommendation algorithms that lead to consumer indecision [5] - The high return rate has become a point of criticism for Douyin E-commerce, with false claims circulating on social media about excessively high return rates [5] Group 3: Merchant Strategies - Merchants are encouraged to use compensation offers as a common and effective method to resolve transaction disputes [5] - Previous initiatives by other platforms, such as Pinduoduo's "retention card" feature, show a trend towards helping merchants retain customers after refund requests [7] - While offering compensation may provide short-term relief, it could potentially disrupt the platform's product evaluation system and lead to misallocation of resources [7] Group 4: Preventive Measures - Douyin E-commerce could consider preventive measures, such as implementing features to screen high-refund customers, similar to those introduced by Taobao [9] - Addressing the high return rate may require optimizing the live commerce model rather than solely relying on post-transaction recovery strategies [9]

Core Viewpoint - A new feature called "High Refund Rate User Blocking" has been quietly introduced in the backend of some merchants on platforms like Taobao and Tmall, allowing merchants to customize their advertising audience by blocking users with high refund rates [1][2]. Group 1: Feature Overview - The feature enables merchants to either completely block high refund rate users from seeing their ads or reduce the likelihood of these users being shown ads [1][2]. - Currently, this feature is exclusive to the apparel category, including women's wear, men's wear, footwear, bags, and accessories, with no indication of expansion to other categories at this time [1][2]. - The feature is still in the testing phase, and its final implementation will depend on the promotional backend display [1][2]. Group 2: Merchant Perspective - Merchants view this feature as a practical tool for optimizing ad spending, particularly in the apparel sector, which is characterized by high return rates and unstable conversion rates [1][2]. - Some merchants have expressed relief, stating that they are not afraid of returns but rather of users who exploit the system for discounts, commonly referred to as "sheep wool parties" [2]. Group 3: Consumer Concerns - There are concerns among consumers that they may be unfairly categorized as high refund users if they return items for legitimate reasons, such as size issues [3][5]. - Consumers have called for a balanced approach, suggesting that platforms should also address issues with dishonest merchants [3][5]. Group 4: Platform Strategy - The introduction of this feature reflects a broader shift in platform strategy, moving away from being a mediator in disputes and instead empowering merchants to manage their advertising more effectively [5][6]. - The platform has also begun implementing a "Real Experience Score" system to enhance product ranking and visibility based on genuine user feedback, aiming to combat fake reviews and improve content quality [7][9]. Group 5: Future Implications - The "High Refund Rate User Blocking" feature may represent just the beginning of a trend towards more personalized advertising based on user behavior and characteristics [10][11]. - As platforms increasingly rely on algorithms to determine advertising visibility, user behavior, including refund rates, may significantly influence what promotions and ads users see [10][11].

Group 1 - Taobao has launched a "high refund rate crowd blocking" feature for apparel merchants, allowing them to customize their promotional pages to block high refund and abnormal refund groups, which is currently only available for Tmall and Taobao apparel merchants [1] - This initiative is seen as an important attempt by Taobao to optimize the business environment and combat "involution" in the e-commerce sector, as the "only refund" policy has increased operational pressure on merchants [1][2] - The apparel industry has been particularly affected by high return rates, with women's clothing return rates typically between 50% to 60%, and some merchants experiencing return rates as high as 90% in live-streaming sales [1][2] Group 2 - The high return rates not only increase operational costs for merchants but also severely impact their profit margins and business motivation, making the new feature a significant benefit for merchants by potentially lowering after-sales costs and improving operational efficiency [2] - The launch of this feature reflects a broader trend in the e-commerce industry towards service and quality competition, as platforms seek to enhance the business environment and improve profitability for merchants [2][3] - Since early 2024, e-commerce platforms have been implementing various merchant support policies and measures to optimize the business environment, aiming to balance the interests of merchants and consumers while promoting healthy industry development [3]

Core Viewpoint - The introduction of the "high refund rate user blocking" feature by an e-commerce platform has sparked significant debate, with supporters arguing it enhances operational efficiency for merchants, while critics raise concerns about potential consumer rights violations and the risk of "big data discrimination" [1][5]. Group 1: Refund Rates and Consumer Behavior - Women's clothing has a persistently high return rate, with live-streamed sales seeing return rates as high as 80-90% due to issues like design, sizing, and product discrepancies [1]. - Some consumers argue that high return rates are not due to unreasonable behavior but rather reflect poor product quality, inaccurate descriptions, or inadequate after-sales service [3]. Group 2: Merchant Perspective - From a merchant's viewpoint, frequent returns, including malicious ones, can lead to increased logistics, labor, and inventory costs, negatively impacting normal operations [3]. - The new feature is seen as a way to filter out "high refund rate" users, potentially improving conversion rates and promotional efficiency in a competitive e-commerce environment [4]. Group 3: Consumer Rights and Fairness - The feature has intensified the imbalance between buyers and sellers, as merchants can filter users while consumers lack a means to identify "high refund rate merchants" [3]. - Some consumers are calling for a reciprocal mechanism that allows them to block merchants with poor product descriptions, inconsistent quality, or high return rates, which could enhance user experience and foster a healthier commercial ecosystem [3][5]. Group 4: Ethical Considerations and Platform Responsibilities - While leveraging big data for service optimization is acceptable, issues of fairness, transparency, and user experience warrant further discussion [5]. - If blocking high refund rate users becomes a standard practice, it may lead to a negative cycle where legitimate return behaviors result in consumers being flagged and subsequently blocked [5]. - E-commerce platforms should address root causes, such as improving product quality checks and penalizing false advertising, rather than shifting the burden onto consumers [5].

Core Viewpoint - The shift in e-commerce platforms from supporting "refund only" policies to prioritizing seller interests reflects a significant change in the domestic e-commerce ecosystem, driven by the realization that the previous approach was exploited by consumers, leading to adverse effects on merchants and overall market health [1][3][9]. Group 1: Changes in E-commerce Policies - E-commerce platforms, including Taobao, have begun to implement features that allow merchants to screen out high refund rate customers, indicating a move towards protecting seller interests [3][10]. - The "refund only" policy, initially introduced to combat low-quality goods, has been found to be detrimental as it encouraged exploitative behavior among consumers, leading to a toxic shopping environment [4][8]. Group 2: Market Dynamics and Consumer Behavior - The rapid growth of the e-commerce market has masked the underlying conflicts between consumers and merchants, which have now surfaced as the market matures and enters a "stock stage" with limited growth potential [6][9]. - The prevalence of "refund only" policies has led to a situation where legitimate businesses suffer while exploitative consumers benefit, prompting platforms to reconsider their strategies [8][9]. Group 3: Industry-Specific Considerations - The fashion industry, characterized by high turnover rates, is particularly affected by refund policies, as unsold seasonal items can lead to significant financial losses for merchants [10][11]. - Taobao's decision to pilot the screening feature in the fashion sector is aimed at reducing costs for merchants by limiting exposure to high refund rate customers, thereby enhancing operational efficiency [10][11].

Core Viewpoint - Taobao has launched a "high refund rate user blocking" feature for apparel merchants, allowing them to screen out high refund and abnormal refund groups to reduce negative impacts on their sales performance [1][4]. Group 1: Feature Details - The new feature enables merchants to completely block users with abnormal refund behaviors, such as false claims of non-receipt and return of empty packages [4]. - High refund users are defined as those whose refund rates exceed three times the average of Taobao users over the past 90 days [4]. - Merchants can also reduce exposure to users with higher refund rates, which will help in managing consumer engagement based on their transaction intent and refund behavior [4]. Group 2: Impact on Metrics - While blocking high refund users may lead to a decrease in refund rates, it could also result in a reduction in overall exposure, click-through rates, and order numbers [5]. - The apparel sector has historically faced high refund rates, with women's clothing return rates ranging from 50% to 60%, and some live-streamed women's clothing returns reaching as high as 80% [5]. Group 3: Industry Context - In late April, multiple e-commerce platforms, including Taobao, have eliminated the "refund only" option, allowing merchants to handle refund requests independently after the goods have been received [7]. - The "refund only" policy, while protecting consumer rights, has been criticized for being exploited by some users, negatively impacting legitimate businesses [7][8]. - The cancellation of the "refund only" policy is part of a broader trend among e-commerce platforms to enhance merchant rights and reduce the arbitrary nature of refund requests [8].