#Laogao E-commerce Newsletter# [February 23 E-commerce Evening News]

Evening news: Douyin e-commerce cracks down on merchants using false transactions to obtain platform subsidies; Taobao, JD Alliance, etc. will not be able to release products in Kuaishou live broadcast room; Tmall will soon release the 2021 Tmall TOP brand power list for the first time; it is rumored that Alibaba suspends Lazada's US$1 billion financing negotiations; data: Shopify market size is close to 50% of the Amazon market...

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E-commerce newsletter

1. Douyin e-commerce cracks down on merchants using false transactions to obtain platform subsidies

The announcement stated that recently, the platform's investigation found that some merchants had acquired platform subsidies through false transactions, which violated the platform's "Merchant Violation Management Rules". Such arbitrage behavior is a typical cheating and fraud, which deceives and misleads consumers and disrupts the normal trading order of the platform. The platform strictly prohibits such behavior. Douyin said that once such violations are discovered, the platform will deal with them in accordance with the corresponding rules, including but not limited to deducting illegal points, closure of shops, restricting activity registration, returning all subsidy funds to the platform, and committing serious crimes, the platform will hand over the clues to the public security organs for investigation and handling. (E-commerce News)

2. Taobao, JD Alliance, etc. will not be able to publish products in Kuaishou live broadcast room

According to people familiar with the matter, the arrangement is related to the expiration of the contract. Previously, there was news that the cooperation between Kuaishou and Alibaba will expire at the end of February, and Kuaishou may completely cut off the external link in the next step. (E-commerce News)

3. Tmall will release the 2021 Tmall TOP brand strength list for the first time

According to the "Tmall Brand Growth Center", Tmall will release the 2021 Tmall TOP brand power list for the first time on February 25, 2022. According to reports, the list is based on the brand's consumer assets and consumer mental performance in 2021 on Taobao and Tmall, and is based on real and objective consumer behavior that reflects the brand's annual report card in product innovation, global marketing, value creation, etc. (E-commerce News)

4. New business training for Kuaishou e-commerce affiliated companies

According to news on February 23, Tianyan Check information shows that recently, the business scope of Chengdu Kuaigou Technology Co., Ltd., a subsidiary of Kuaishou e-commerce, has been changed and new business training has been added. Chengdu Kuaigou Technology Co., Ltd. was established in October 2019. The legal representative is Jia Hongyi, with a registered capital of 50 million yuan. The company's business scope includes radio and television program production and operation, first-class value-added telecommunications business, second-class value-added telecommunications business, pharmaceutical retail, etc., and is 100% owned by Beijing Kuaishou Technology Co., Ltd. The company's main products are Kuaishou stores, and its main service items are supplier settlement, service provider settlement, live broadcast base settlement, and ERP settlement. (E-commerce News)

Internet news

5. 1 Yao.com will release its fourth quarter financial report for 2021 on March 17

According to February 23, 1 Pharmaceutical Network recently announced that it will announce its unaudited fourth quarter and full-year financial reports for 2021 ended on December 31, 2021 before the opening of the US stock market on March 17, 2022. According to the financial report previously released by 1 Yao.com, in the third quarter of 2021, the company's revenue reached 3.346 billion yuan, a year-on-year increase of 42%; gross profit increased significantly, a year-on-year increase of 85%, twice the revenue growth rate. According to the financial report, the gross profit of the company's core business B2B sector reached 142 million yuan, a year-on-year increase of 145%, and the revenue scale of diversified services reached 24.4 million yuan, a year-on-year increase of 106%. (E-commerce News)

6. Dingdong Maicai: The "acute freezing" model has driven the sales of hot pot ingredients in Shenzhen to rise by more than 30%

Dingdong Maicai data shows that in the past week, sales in Shenzhen have grown rapidly, especially pre-made dishes represented by hot pot, have performed even more strongly. Driven by citizens' enthusiasm for "making side stoves", the sales of hot pot ingredients have increased by more than 30%. It is understood that since Dingdong Maicai launched pre-made dishes mainly based on private brand products in early 2021, users have purchased 100 million Dingdong pre-made dishes. "Dingdong Damanguan" hot pot has become the hottest product in autumn and winter, and has set a record of 200,000 pots sold in a single day "Dingdong Damanguan" pot bottom. (E-commerce News)

Cross-border newsletter

7. Alibaba suspends Lazada's $1 billion financing negotiations

According to Bloomberg, Alibaba Group has negotiated with investors to raise at least $1 billion in its Southeast Asian e-commerce platform Lazada. However, Alibaba canceled negotiations with potential investors as the two sides were in a deadlock over Lazada valuation. According to people familiar with the matter, Alibaba originally planned to use this round of financing as a first move to divest Lazada in the future to prepare for its potential initial public offering. Alibaba had hoped to raise at least $1 billion, but the company stopped the round of financing due to failure to obtain expected valuations. (E-commerce News)

8. Cainiao International and Dianjiang Technology reach cooperation to accelerate the digital development of cross-border logistics

According to the news on February 23, according to the world's online merchants, Cainiao International and the independent website construction platform Dianjiang Technology reached a cooperation today. It is reported that in order to serve more cross-border merchants, Cainiao International and Dianjiang Technology have officially launched high-quality logistics services for Dianjiang Technology platform merchants, covering 120 countries around the world after multiple rounds of testing. After the merchant authorizes login, the order information can be automatically brought in, quickly created orders and achieved rapid delivery. According to reports, this service can not only experience fast services such as free collection in major domestic areas, but also provide performance guarantees and worry-free compensation. (E-commerce News)

9. WeMall ShopExpress and Lianlian International reach cooperation

According to February 23, recently, WeMall ShopExpress officially reached a cooperation with Lianlian International, and has prioritized the connection between the two functions of "global collection" and "global collection", benefiting all independent website sellers who use WeMall ShopExpress solutions. According to reports, in terms of global acquiring, users of WeMall ShopExpress can accept online payments from global consumers through Lianlian Global acquiring. At the same time, the direct cooperation between the two parties has also achieved embedded non-jump payments, further improving the payment conversion rate. (E-commerce News)

10. Data: Shopify market size is close to 50% of Amazon market

According to MarketplacePulse data, Canadian e-commerce Shopify is now almost close to 50% of the Amazon market after its GMV of more than $54 billion in the fourth quarter of 2021. It is reported that the total transaction volume of Amazon sellers in 2021 reached US$390 billion, while Shopify had US$175 billion. Shopify's GMV for the whole year is 45% of Amazon. However, Shopify hit an all-time high of 48% in the fourth quarter. Over the past few years, the overall growth of Shopify sellers has surpassed Amazon third-party sellers. It is reported that Amazon's market size in 2018 was 4 times that of Shopify, and Shopify's GMV that year was only lower than the GMV in the fourth quarter of 2021. (E-commerce News)