China’s E-commerce Crash: 80% Will Fail, 90% Return Rate, Influencers’ Riches Dream Shattered 

imagine my shock people don't want to be scammed with low quality goods

The high returns rates is because they lie in the advertisement about the items quality. They send out garbage instead and then get surprised when people send the garbage back. They deserve it. It will weed out the fake sellers. This is why you need to read reviews and be careful when buying online. There is so much fake garbage but also much great stuff.

I was an ex-Temu buyer, quality is so poor it makes Dollar Tree items look high quality.

Negative "profit"....is called a LOSS ! 😅😅😅

They cheat their customers with abysmal quality and after they complain about returns

Vendors and customers scamming each other. Industry collapse ensues. Vendors and customers are flabbergasted.

the irony: watching the Chinese complaining about the Chinese s#!t they bought🤭🤭🤭

Good. Let's all further help the poor Chinese out by reducing any purchases of Made-in-China products whenever humanely possible.

It’s quite the unfortunate trend. One guy finds big success in a job market, tells other people, word spreads further and then that market becomes over saturated. Inevitably all resulting in a poorer overall quality of work because of the low income.

Love it. Everyone is trying to scam each other. The scammers become the scamees. It's one big circular scamfest. Peoples Republic of Scamville.

Chinese business practices are pretty much the same; 1) Advertise something that looks really cool. 2) Send something that is really crap. 3) Quickly scam everyone to make as much money as possible. 4) Flee overnight with the company funds. 5) Leave your employees in the lurch.

First rule of sustainable e-commerce: "Don't sell/resell shit quality items..." Returns will be down 1000%...

China has the ambition to take over US now they got slap in face really hard by the sanction by the US😂😂😂

People should stop buying trash

why is it surprise when there are refunds, when u ship out trash. I thought they should be smarter than that. Garbage in, Garbage out.

Western companies finally started figuring out a few years ago, the money saved by making things is lost when your schematics are sold to 30 other factories who knock your products off and compete with you.

The issue is that companies don't want to build a brand anymore due to the lucrative short-term profits. If you do sell trash then you have to depend on new customers falling for your scam consecutively, but if customers have already fallen for 20 other scams from similar companies, then they will no longer support it, especially if there are good return policies then you will no longer be able to profit either. The reason brand clothes are popular in China is partly status, but another part is that the quality is reliable. Increasing quality will get customers who will spend a bit more, who won't return items and finally you will be able to get regular buyers, but short-term profits have created a market where everyone tries to undercut everyone else while providing trash.

promise good quality too super low prices. proceeds to be shocked when stuff gets send back because its super bad quality. i know people who ordered stuff from chinese online stores. it was always very bad quality, broken or straight up a scam. they just didnt bother with sending back cuz 50 bucks isnt worth the hazzle to them. 20-15 years ago, buying a "chinese knock off" meant, half the price for -25% quality. now its means a gamble between a scam and terrible quality. if you are lucky and you hit the jackpot, you get a decent product.

For the last 4 years, I have been checking all labels and boxes on all products I buy. I will not buy any product that says "Made in China" ever again. Absolutely nothing! In the last year I have noticed that an increasing number of products are being made in Thailand, Mexico, Phillipines, and Vietnam. More power to them, I say!

90% jewelry return rate because of a non-zero rate of toxic metal exposure.

Shop and restayrant closures have been rampant across China. E-commerce is not immune from the adverse effects of China's catastrophic economic woes as domestic demand weakens.

I thought ecommerce was eating physical stores’ lunch…lol so what’s good in China

I have never made an online purchase. I support local businesses and buy only what I need. Needless to say, I think that close to 100% of that online product will end up in landfill sooner rather than later.

China placed their focus on proving their manufacturing prowess. They went all out to show the world they can make anything. They seemed to have forgotten about quality and durability. They have exported millions of cheap motorcycles to African countries which which work fine for at most 2yrs then the engine dies. There are no spare parts and you're told 'no spares, just buy new one.' They're exporting their Higer and Zhong Tong Buses as a cheap alternative to Marcopolo and Scania buses. Fleet operators start having problems with the buses barely 3 months after taking delivery. I took a trip on one bus which was less than 6 months old and guess what? The transmission acted up. What was supposed to be a 7-hour bus ride stretched to an 11-hour trip. Mechanics had come on another bus and it took them 3 days to fix it.

When in China, when it rains, you get these 'Umbrella Sellers' at the exits to the metro (sub way) selling mini umbrellas. It seems okay, they are 10RMB usually. So kinda cheap. But.. after about five uses, they break. They are not worth buying and you should pay 30RMB or up to 50RMB for a better quality larger one, a a better store.

Why prices on Aliexpress are still rising for 3 years ? If they fight to sell, they should reduce the price.

Pay cheap, expect cheap. Tis the CCP way.

Only one reason Chinese companies are going down, "QUALITY, QUALITY, QUALITY" read the comments below.

Wait lol customers are exploiting ecommerce shops? Yeah bro I think it's that the customers were horribly exploited by a deluge of fake products and low quality crap and false advertising so no sympathy here.

The Chinese are learning the reality of capitalism.

Yeah 90% is junk

5:11 "The inside is yellow and the cotton is prickly." Lady that's fiberglass

I bought some cool looking gloves from temu, and after wearing them for a few minutes my hand started getting itchy! Turns out it’s made out of this weird feeling plastic/rubbery type material. Then I realize a $29 dollar bag I also purchased from temu was made from the same weird material so I trashed it. Point being, don’t buy anything with cloth like material from china, YOU’LL WASTE YOUR MONEY.

It's an oversaturated market, and so some have to fail, and now they are. Nothing is crashing, it's returning to a more sustainable level. This is common in China in many areas of business, just look at bubble tea.

I have many friends who failed e-commerce in China. They all overlooked the same list of problems: 1) Contribution. They always look at gross profits, never check purchasing cost, rent, shipping, and most of all - salary. While running their own business, they skip their own salary and work for free, not seeing they actually LOST money instead of gain. 2) Accessibility. While e-commerce allow you easy platform to place your products, so do hundred-million others. Unfortunately, they only willing to look at that top 0.001% who actually made money, and refuse to acknowledge the majority. These people not only lost their business but also their friends, many were blocked because of frequent uploads of uninterested products, to the point friends blocked them.

5:40 - I hope you enjoy black mold. 6:16 - Lol, morals

When I was little my mother ordered something from Fingerhut. This was in the 70s. Everything was messed up it was hilarious, my older brother and Mom were mad.

No consequences. The CCP does not believe there will be consequences to what it does. Many stores also copy famous brands and believe there will be no consequences. What goes around comes around.

Watch out Temu customers !

Temu must be profiting from us Gweilo. Their ADs are all over RU-vid and Facebook.

Fools can't even provide the correct power plug ever!

in China there is a saying which goes; 能骗就骗! /SCAM WHENEVER YOU CAN. it is essentially a Chinese rule of thumb in business and life.

What the hell is a shopping festival

You should cover the 4 Americans stabbed in Jilin, China recently.

Williams-Sonoma is an interesting brand. A lot of their merchandise was stuff you could buy online elsewhere. I think they had to start getting creative and creating exclusive lines / brands to differentiate themselves. Just steady growth for the past 10 years (pre-pandemic). Building a brand means nothing in China. The Chinese consumer doesn't care. They'd sell off their parents for a discount.

Me personally, Less than 10% of my purchases are bought via E commerce.I prefer to see and feel what I am buying.This takes place in a bricks and mortar store. I may pay more but I will shop less on products that I really don`t need.Eliminating the middle man with E commerce affects real estate,business owners and shop workers employment that spreads money around to more than the manufacturer and the Platform that skims the money electronically.Always looking for the best deal without seeing what you are buying can lead to lost time,scams and unnecessary impulse purchases.

Personally I would go for cleaning jobs if I was hard-up. I even like cleaning - seeing something get clean pleases me enormously.

I buy Chinese luxury products and my opinion is that you get what you paid for. wanna buy cheap ? don't expect much. luxury brands however r the best. you just need to pay more than 50 usd and you get really good products.

I'm sorry stateside you don't pay your workers for 2 weeks and you would be lucky to still have workers. You somehow make it to 30 days and still haven't paid them they're walking out the door. 90 hahahah not happening.

chinese worker: im glad we're closing down im relaxed.

ALWAYS SEND THE CHEAP STUFFS, INSTEAD OF THE CUSTOMER ORDER, SCAMMING ALL THE TIMES, SO PEOPLE JUST RETURN. BACK, SCAMMED TACTICS DONT. WORKS IN LONG RUNS,

They are lucky it's only 90% return. With those extremely poor quality goods, it should be 100% return

The government needs to start focusing on the health and wellbeing of it's people and stop chasing the idea that they are some sort of super power. Anytime their government is too focused on their image the citizens suffer.

Walsh:...forget it, Jakey...it's chinatown... Dementus:...THERE IS NO HOPE!!!...

I'm always curious about why/how employees work for months without pay.

Store complaining about having to process all of the returns...how about improving the quality of your goods?

Sure sounds like an economic depression to me.

Online store price competition is brutal, I bet more country outside of china will have similar issue tho China terrible economic crisis accelerate the issue so much faster than other

China feeling the Jack Ma curse . Where is Jack Ma ? 😢

This may lead to more brick and mortar stores where you see what you are buying.

They whine and complain about customers exploiting the platform when the customer are just looking out for themselves and shopping around. It’s the seller’s super low quality products that causes the return. If your product is Temu and SHEIN quality, expect returns and lost customers.

I wonder about the regulations. I’m hearing from these many reports that quality is not managed, or it has become impossible to manage because of the volume of people and the magnitude of criminality in leadership. Remember the historical zombie movie where they resorted to cannibalism due to the lack of food and the death of a stranger? It also reminds me of colonial treatment during the indigo famine. The idea that every day citizens have that actual level of concern is tough to bear as a fellow human.

Chinese Seller: Sell items that are trash in every single way. But lies about quality. Customer: Returns product Chinese Seller: *Surprised Picachu face* Such a mystery.

This is the « self regulation » of the market. People finally realized the crookedness of e commerce, so only the quality ones will survive, and physical stores will come back.

Reuters (June 7th): China’s export number rise solidly. "Headline export numbers are surprisingly good, and that confirms the underlying trend, volumes are running very high," said Frederic Neumann, chief Asia economist at HSBC. “China is currently so competitive, that even trade restrictions wouldn’t really slow the export juggernaut that’s underway.” And they are failing? Get real.

This is why China has built big warehouses near vietnam borders for e-commerce in Vietnam

I'm always amused when people complain about the quality you just spent $2 on a Louis Vuitton knock off handbag what did you think you would get Louis Vuitton quality you're in the land of knockoffs and counterfeits

Chinese technology😂😂 chinese here in the Philppines is a big headache in our peace and order, they kidnapped one another for ransom😂

I hear the military are hiring….

Suckering in those just graduating with debt promising them all to get rich if they sign up for loans. All they get is a debt future. And bad credit. Millions in the united states fall for the same thing. Interest payments and debt loads.

I thought China collapsed in 2012. Gordon Chang needs to write another China prediction.

make good information and presentation page on items and dont push cr...p on ppl then u wont get retarns. there are plenty of shops on aliexpress that giving good information supported by mayny positive revues. those who run their buissnes honestly get repit customers

I've got no sympathy for the loss of e-commerce. And the customers are partly to blame they paid underpriced for imagination goods expecting quality.

When u sell poor quality u get poor incame. Thats the rule of true free commerce

Morality has no place in commu nism - never has, never will

I used to buy loads of stuff for my wife and kids from Chinese websites, they would use it for a while then get sick of it, then it would go missing. I would repackage it and send it back.

Karma

When you do away with religion, how are the people going to develop morals?

lol if you can cheat then cheat for Customers and e commerce both XD

Humanity will not last when it converts all natural resources that sustain life into "products" and materials that do not. We give it a fancy name like "careers", but in reality these careers are just a title to make money and/or gain fame. For career/money/fame, we would destroy and strip our mother nature bare and turn it into money and/or fame. The question is: if all nature is contaminated and destroyed in this "progress" process, what will then sustain life? What will produce food and clean water when we no longer have productive soil, clean water and/or air? Remember, you can't eat high rise buildings, Temu toys, or all the clothes in your closet. FOOD and WATER is what sustains life. But we destroy the source of FOOD (farmland, water, and climate) by producing endless pollution that changes our climate, water, and air. Peopel buy junk for fun now a days because we like it, not because we need it. And we throw away because we no longer like it. We deserve the natural disasters to come...

Buying made in China at the store or on the live stream still the same crap 5:36

That is karma.. lol 😂😂😂

When you're perceived as being the source of an outbreak, local governments remove incentives, and implement higher taxes (encouraging businesses to move), then you're going to loose manufacturing jobs. Without jobs, there's no income. Without income, there's no economic growth. This has happened many times all over the world. Even in the US, with coal, steel, and automotive industries. Companies want little to do with them now. Decades of growth are beginning to disappear

hah morals

Here we go

What did we expect everytime we buy online from China the electronics items it's not working..

Sellers should ensure that their products are of high quality and buyers should do due diligence when buying/ looking for items. Go to the physical store so you can check out the quality of the product yourself or do you really want to risk it? Government should step up to regulate the products, especially those with poor quality. Selling poor quality products is a scam and scammers should be put behind bars.

gg china

I am a buyer. I don't buy things at the cheapest price. I look for quality and good service. Why sellers cannot understand me?

If I were in the dire status of these people, I would look into acquiring an acre or two of good fertile land with water, so that I could grow some fruit trees and raise some chickens, and keep myself alive until things get better.

Online E-business is not reliable, selling and to delivery mismatch, because some seller are scammers. What you can expect from consumers, evade to buy e-commerce online business. Not overtime going to collapse, but slowly going to end business coz the type of business is not reliable. Not like in physical store is that the consumer, what they see, is what they purchased/got/received.

LOL funny

Chinese Dont do returns

Maybe consumer demand has reached saturation, people have most of what they want.

The crap you get on-line. Return it isnt feasable so you throw it away in the trash. Shop in the stores.

You mean we get our "kangaroo" back 🤣🤣🤣🤣🤣🤣🤣

The result of scamming and using each other 😅😅😅

Chinas the canary in the coal mine for whats just about to happen in every country especially au us uk eu cad lol

It seems they don't like their crappy products either. I give them credit for taking the time to actual returning it for a refund.

Interesting , Sad