#Laogao E-commerce Newsletter# [March 23 E-commerce Evening News Brief]

Evening news: Taote announced the launch of Taote 10 yuan store and Taote 100; Baozun E-commerce announced that it had repurchased US$166 million convertible priority notes; Kuaishou E-commerce: Unpaid liquidated damages will be restricted from withdrawal and deduction of goods; Shopee Indonesian site VAT rate changes; Lazada Quanzhou Distribution Center suspends operations...

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E-commerce newsletter

1. Taote announced the launch of Taote 10 yuan store and Taote 100

On March 23, on the eve of the second anniversary of its launch, Taote held a spring product communication meeting. Taote President Wang Hai announced that Taote will launch Taote 10 yuan store and Taote 100. Taote 10 yuan store is positioned as a small item and small product covering various life scenarios, which can realize N-yuan N-pieces, direct supply of factories, full inspection of warehouse entry, one-stop purchase, and one-parameter delivery; Taote 100 is positioned as a trend product for consumption upgrades, focusing on cost-effective quality products "big brand replacement" to help incubate factory brands. Through Taote 10 yuan store and Taote 100, Taote and the national industrial belt factories have continuously launched direct supply products from the source to meet consumer needs. (E-commerce News)

2. Tmall International adjusts shipping requirements for areas affected by the epidemic

According to reports on March 23, Tmall International announced that recently, due to the COVID-19 epidemic in some regions, the delivery of merchants has been affected to varying degrees. The platform has made special regulations on the delivery time in some regions. On March 21, consumers were passively complained and exempted from liability, adding eight new cities including Changzhou, Jiangsu, Tangshan, Hebei, Yingkou, Liaoning, Binzhou, Shandong, Qinzhou, Guangxi, Weifang, Shandong, Baoji, Shaanxi, and Fuzhou, Fujian. (E-commerce News)

3. Baozun E-commerce announced that it has repurchased US$166 million convertible priority notes

On March 23, Baozun E-commerce issued a statement on March 22 that it has repurchased its principal of US$166 million and 1.625% convertible priority notes due in 2024. As of the close of US stocks on Tuesday, Baozun E-commerce's stock price rose by more than 15%, with a quotation of US$7.96 and a market value of US$554 million. As of 10:23 am, Baozun E-commerce rose 13.856% to HK$21.200. It is understood that Baozun E-commerce has previously released its fourth quarter and full-year financial reports as of December 31, 2021. According to the financial report, Baozun's GMV in the fourth quarter of 2021 reached RMB 26 billion, with a total net revenue of RMB 3.2 billion. The annual GMV in 2021 reached 71.1 billion yuan, and the total net revenue was 9.4 billion yuan. (E-commerce News)

4. Suning.com Retail Cloud's 11,000th store in the country will open on March 25

On March 23, Shaanxi Suning Retail Cloud Video Account announced that on March 25, the 11,000th store of Suning.com Retail Cloud in the country will open in Shenmu New District. Up to now, the stores have covered all prefecture-level cities in Shaanxi, covering more than 100 districts and counties, and more than 200 townships. The total sales have been 3 billion yuan, creating more than 4,000 jobs for the local area. At present, Yulin has deployed 25 Suning.com retail cloud stores, with annual sales exceeding 100 million. According to Yu Jianli, general manager of Shaanxi Suning.com Retail Cloud Company, in the future, retail cloud will open more than 40 stores in Yulin area, with a sales target of 300 million. (E-commerce News)

Internet news

5. Kuaishou E-commerce: Unpaid liquidated damages will be restricted from withdrawing cash and deduction of goods

If the violator fails to pay the liquidated damages within the specified time, the platform has the right to suspend its continued use of the shopping cart function or remove all goods, prohibit the shelves of new goods, freeze the payment of goods of the violator, and have the right to deduct equal amounts of funds from the payment of goods or deposit of the violator to make up for the losses caused to users or platforms by the violator. (E-commerce News)

6. Youzan launched the package card to increase the fans plug-in

On March 23, Youzan announced that the package card fan increase plug-in is launched. It is expected that the internal testing of the "Paper Card Fan Increase" tool will start on March 21, 2022, and will be open to all merchants after the internal testing on April 11. This function currently only supports the micro-mall e-commerce version, and is not supported by other store types for the time being. (E-commerce News)

Cross-border newsletter

7. Lazada Quanzhou Distribution Center suspends operations

For parcels that have arrived at the Quanzhou Distribution Center and have been put into the warehouse and scanned but have not been out of the warehouse, the platform will arrange subsequent operations as soon as possible after the control is completed; for parcels that have been sent but have not yet arrived at the Quanzhou Distribution Center, merchants are advised to pay close attention to the logistics trends. In order to avoid affecting the time of performance, it is recommended to contact the express delivery/logistics company to return to the delivery place or reissue the Shenzhen Distribution Center. For packages that have not been sent by the merchant, it is recommended to send them to the Shenzhen distribution center by themselves. After the warehouse receives them, it will be arranged to handle them as soon as possible. It is understood that Lazada Shenzhen Distribution Center will resume operations from 0:00 on March 21, and can receive goods normally and arrange subsequent operations. (E-commerce News)

8. Changes in the VAT rate of Shopee Indonesian site

On March 23, Shopee issued a notice saying that according to the regulations of the Indonesian government, the value-added tax will be changed from 10% of the original tax rate to 11% for goods that arrive at Indonesian customs clearance from April 1, 2022. Therefore, Shopee will update the VAT rate on March 24, 2022, and will uniformly adjust the commodity prices at the front desk of Indonesian sites. This tax rate adjustment will be borne by the buyer, and the seller does not need to change the price or pay any fees by himself. Sellers can adjust their marketing tools such as coupons, purchase discounts, and set discounts at their discretion. (E-commerce News)

9. Home design e-commerce The Expert receives US$12 million in Series A financing

On March 23, according to foreign media Business Of Home, home design e-commerce The Expert recently announced that it has received a US$12 million Series A financing. The Expert has officially launched in 2021, providing users with interior design solutions that meet their budget through video consultation. It is understood that the company is expanding into the e-commerce field and plans to officially launch an online market called Showroom this summer. Company founder Leo Seigal said that entering e-commerce is not a fulcrum, but an extension of its core business, which has proven profitable. The company said it had generated $5 million in total revenue in its first year of business alone. (E-commerce News)

10. Amazon UK website adds a new "Contact Customer Function"

On March 23, Amazon UK website issued an announcement on March 21 that Amazon launched the "Contact Customer Function" for sellers of registered brands. However, after the launch of this feature, it has been questioned by many sellers. Some sellers believe that if the buyer exits the communication page, communication between the two parties will not be carried out; the seller uses compensation refunds in exchange for the buyer to modify the negative reviews, which may be extorted by the buyer; Amazon's customer review policy prohibits sellers from requiring customers to modify the negative reviews, and violators will be banned, and the new function is contrary to it. (E-commerce News)