Did fake discounts on Alibaba and Amazon drive Singles Day success?

Did fake discounts on Alibaba and Amazon drive Singles Day success?

Did fake discounts on Alibaba and Amazon drive Singles Day success?

A Chinese consumer organization claims that 17 % of discounts on China's Alibaba and JD.com and American Amazon.com during the world's largest online shopping event, Singles' Day, were fake.    

Misleading discounts

Singles' Day, which takes place on 11 November, is China's largest online sales event: it is bigger than Black Friday and Cyber Monday combined and therefore it is a very interesting (and lucrative) moment for platforms like Amazon, Alibaba and JD.com, which all post huge numbers on this particular day.

 

A Chinese consumer organization, CCA, now claims in a report that there were fake discounts on these platforms, through a price increase immediately before 11 November, to make it appear that the discounts were a lot higher than they actually were. 35 % of Amazon's products investigated turned out to be more expensive than when they were not in a sales period. For JD.com, it was 26.8 % and 19 % for Tmall (Alibaba's online platform).

 

Government involvement

CCA passed on the information to the government, who had been cracking down on this practice already. The American Securities and Exchange Commission was already researching 2015's Singles Day results, but the Chinese government also issued a warning prior to the event, warning companies not to falsely advertise.

 

Out of the three companies, Alibaba issued a statement, saying it had "strict measures in place to counter fake discounts" and that it punishes retailers on its platform that still do it. The other two companies did not provide any statement.    

Questions or comments? Please feel free to contact the editors


Gerelateerde items

Amazon bans customers who return too much

24/05/2018

Amazon is putting a stop to customers that return too many items or that “misbehave” according to the retailer: whoever crosses the line, will be banned. Dozens of customers have taken to social media to complain about this unilateral account removal.

Carrefour and Tencent launch high-tech store in Shanghai

22/05/2018

The recently launched ‘Le Marché’ store formula, a first collaboration between Carrefour and Tencent, allows customers to pay with face recognition at unmanned checkouts.

Amazon Prime members get additional discount at Whole Foods

17/05/2018

Amazon Prime members will get an additional discount on hundreds of Whole Foods products, the chain it acquired in June 2017. Specialists claim there is a clear strategy behind these discounts.

Walmart, not Amazon, will acquire Indian market leader Flipkart

07/05/2018

Despite Amazon’s attractive offer, Indian online retailer Flipkart has chosen for Walmart and (remarkably), Google owner Alphabet as the new owners of 75 % of Flipkart’s shares. The deal is said to be worth 15 billion dollar.

Alibaba's growth exceeds expectations

07/05/2018

Chinese retail group Alibaba has published better-than-expected quarterly results: turnover went through the roof, but its profit is under pressure because of increased investments.

Amazon looking to outbid Walmart in Flipkart deal

03/05/2018

The battle for dominance on the Indian e-commerce market seems to be stepping up a notch: Amazon may be looking to buy a majority stake in Flipkart, trying to better Walmart which already started negociations with the Indian online retailer.