Pinduoduo only refunds, is it a bully to the merchant? No!

Regarding Pinduoduo's rule, which only refunds, has caused a lot of complaints, and some merchants have even launched public opinion to say that this is the Chinese version of "zero yuan purchase".

Obviously, this criticism is completely wrong.

"Zero-dollar purchases" are when someone snatches something directly from the store without paying, and it is an act of violence that occurs in some parts of the United States due to the inaction of local laws and law enforcement, as well as the risk of injury to the business owner if the clerk prevents such an action and the risk of injury that would result in more compensation for the business owner.

Zero-yuan purchase is a violent action, but only refund is not, only refund is just a shopping mall rule, shopping mall rule, it is very simple for merchants to escape, that is, not to use this platform.

Is the rule, just refunds, outrageous? Not at all.

It is because China's market economy is not developed enough, and most consumers have not enjoyed the services under the developed market economy, so they think this kind of rule is very strange.

For example, in the United States, the return rules of physical stores are incredible in the eyes of many Chinese.

Even if you shop in the United States without receipts and packaging, you can return it for no reason, whether it is in a physical store or online, you can generally get a full refund for free within 30 days, for example, in Trader Joe's is often said to be a "lack of virtue uncle" among Chinese students, even if you open the food you have eaten, whether you have a receipt or not, you can bring the goods back to the store for a full refund.

There are also well-known target retail stores in China, within one year of product purchase, as long as it is target's own brand product, consumers can get a refund or exchange with a receipt.

There was a video on the American Internet that was particularly popular, and it was written at the beginning that I didn't spend a penny on the clothes for the children to return to school, and this blogger came to the target store with a bag of old clothes and shoes and successfully returned the goods.

It can be said that Americans can return goods as they want, and they can return whatever they want, and they will return everything.

Costco, a well-known supermarket, is known for its extremely lenient return policy.

Withered plants or leftover chicken bones can be retired, which has become a classic bridge.

Consumers who shop at Costco all year round understand that there is no need to have any psychological barriers to return, there is nothing that cannot be refunded here, half-eaten roast chicken, worn T-shirts, bottled health products that have been eaten for a few days and feel ineffective, no need for a receipt, as long as you bring your membership card and bank card at the time of payment, you can complete the return.

In fact, what is the difference between these return methods and only refunds? Actually, no.

Can the roast chicken that has been eaten, the clothes that have been worn, and the bottled health products that have been unpacked still be sold? No more.

There are even many Chinese who take advantage of this rule when they first arrive in the United States, constantly buying clothes to wear, and returning them after a few months of wearing.

Isn't this an advanced business model?

Some people will say that this does not encourage some consumers to get something for nothing and be greedy for cheapness? Yes, it does, but, more importantly, it brings more customers to buy without any worries.

A lenient and generous return policy can encourage consumers to spend and inspire loyalty.

Conversely, if a policy increases the cost or inconvenience of customer returns, it can harm the retailer's own interests.

In the field of business, there is a well-known business theory, that is, the "Amazon Flywheel": attract more traffic (consumers) with affordability, traffic attracts more merchants, and richer goods bring more affordable prices.

Affordability is only part of the customer's needs. If the customer experience is taken as the starting point of the flywheel, and the benefits and pets (services) are all part of the customer experience, then the effect of this flywheel will be multiplied.

This is the secret of Costco and Pinduoduo's success today.

Some merchants are not convinced, they say that in foreign countries, it is the shopping mall that bears the loss of these returns, not the merchant who provides the product, and on Pinduoduo, it is the merchant who bears the loss. In the end, everyone likes to buy things in Pinduoduo, but the specific merchants are the ones who take the risks.

This understanding is also wrong.

In fact, as a shopping mall and a platform, Pinduoduo and merchants have one interest. If this loss is directly borne by Pinduoduo, it is just a proportion of Pinduoduo's increase in the margin, commission, and promotion costs of merchants.

In the Internet platform model, the refund-only model is more advanced, because it will record the customer's actions, and a customer who makes money with a refund-only model will soon be recognized by the platform and cancel his privilege.

And a reputable customer who has been buying products on the platform for a long time must of course be given this special status, because this shows that the core cause of after-sales disputes is the poor quality of the merchant's products.

This restricts the product quality of platform merchants, and pure low-cost and low-quality products will not be able to make a profit in such a mode of operation, thus driving this type of merchants out of the platform.

In the past, there were many such products on the Pinduoduo platform, that is, products for a few dollars, the quality was extremely poor, and the product benefits were completely inconsistent with their promises, but although the customers were not satisfied, they were too lazy to return the goods for these few dollars, but now only the return can identify such merchants, so that they can not make a profit, so as to improve consumer satisfaction.

That's right, all good platforms will have a characteristic, that is, they are extremely friendly to consumers, but they make merchants extremely competitive.

The final effect is that merchants complain a lot, because it is too difficult for them to make money, and they have to improve the quality and reduce the price, but at the same time, they can't do without the platform because the sales volume is too large.

On internet platforms, even more so. Excellent enterprises only need to focus on product quality, strive to reduce costs, improve quality, and hand over marketing to the platform, so that businesses can become winners on the platform.

The market economy is not an economic system that is friendly to entrepreneurs, but an economic system that is incomparably friendly to consumers, and it will make business operators extremely painful, so that eighty or ninety percent of enterprises cannot make money, and even let some of them lose all their money, and only a very small number of entrepreneurs can succeed.

Therefore, all the complaints about Pinduoduo are the complaints of the e-commerce industry, that is, entrepreneurs, you don't have to worry about what will happen to them, they don't do it, some people do it, only the platform has a large sales volume, Pinduoduo will not lack merchants, every time a merchant is reduced, there will be another merchant to occupy the market.

You don't have to worry about the pain of entrepreneurs, you only need to consider one element, and that is whether it is good for consumers. You don't have to worry that in this kind of competition, the closure of the company will make the employees unemployed, no, this company is finished, and the other company needs more employees to increase orders.

At the same time, if the price is lowered, consumers will buy more products for the same expenditure and will need more labor.

In short, those brick-and-mortar stores complained that e-commerce robbed him of his business, e-commerce merchants complained about Pinduoduo made them very painful, and the takeaway brother complained that Meituan's time requirements were too strict, you have to understand that what drives this pressure is consumers' requirements for declining prices and continuous improvement of quality, which is the inevitability of the market economy.

As long as there is no violent interference and administrative control, then this fierce competition is often beneficial to consumers.

Taobao merchants and Pinduoduo merchants often compare, Taobao merchants say, although we don't sell much, but the gross profit is okay, and you can still make money, while Pinduoduo merchants say, don't look at me selling more, but I can't make money at all.

If you're going to invest, I'm telling you, Pinduoduo is worth investing, while Ali isn't.

My friend who built a membership base started Pinduoduo in May last year, and I have written many articles to show the reason:

Why Pinduoduo is Cow? 》

"Pinduoduo is crazy again, the world's number one is waiting for him"

"Pinduoduo is awesome! 》

Because of a platform that does not meet the interests of consumers, his value will only get lower and lower. If you can't let the merchant "roll" up, it is the failure of Taobao, because it does not meet the goal of consumers.

How can a business that does not meet the goals of consumers have a future?

We sympathize with the entrepreneur on the other side, that is, too high taxes, too much regulation, these means will lead to the production efficiency of enterprises, not enough capital accumulation, and thus to the detriment of consumers.

In fact, entrepreneurship is the most difficult profession in the world, eighty percent of entrepreneurs end up losing money, and less than 10% of the remaining two percent can develop into medium and large enterprises, because the competition is extremely cruel.

And the income of laborers is increased by the constant competition of entrepreneurs, and the prices of the products purchased by consumers are also constantly falling in this competition.

Why would you object to this mechanism that makes entrepreneurs compete fiercely?

If all entrepreneurs can make money by lying down, is it still called a gross market economy?

Many people misunderstand that the free marketers are the lackeys of the capitalists, which is completely wrong, but in fact the free marketers are from the perspective of the interests of all, because the falling prices of consumer goods, the rising incomes of laborers, and the rising prices of land are the three major results of the free market economy, and these three major results are in the long-term interests of all, because entrepreneurs are also consumers.