The consumer rights law in China – which has been recently revised – might push some of the small e-retailers out of business. The country’s revised consumer rights law includes a week-long cooling-off period and during that time, shoppers can get a refund for their online purchases.
The revised law will come into effect on March 15, 2014 and is expected to raise standards in China’s blossoming e-commerce sector. When customers get the right to return their purchases, this will mean increased costs for service and logistics, which is an additional burden for small online retailers. Lu Zhenwang, the independent e-commerce expert and chief executive at Wanqing Consultancy said, “The revised law is going to have a positive influence on the entire e-commerce sector in the long run, because it requires online retailers to offer the same high-quality services as those provided by brick-and-mortar stores”.
Lu went on to say that big business-to-consumer platforms like Alibaba’s JD.com and Tmall.com already have return policy. The official also stated that their most important strength in the e-commerce sector is good service.
The revision made to the Consumer Protection Law is the first one since the law was established 20 years back. This helps in regulating merchandise and service transactions made online.
Photo Credits: Independent
