One month after the intense sales of "Double 11" in the furniture e-commerce sector, the real reasons behind the impressive sales figures have started to emerge. All-Friendly Home, which claimed the top spot on Tmall's home goods sales chart with over 100 million yuan in orders, has faced a backlash after its official flagship store reported a staggering 36% refund rate. This has sparked controversy within the industry. The company's explanation that an imperfect delivery system caused the refunds seems unconvincing. On the contrary, allegations of inflating sales data through fake transactions have cast doubt on All-Friendly Home's status as the "sales champion," suggesting it may be involved in fraudulent activities.
The high refund rate is alarming for the furniture e-commerce sector. During the "Double 11" promotion, All-Friendly Home's official store became the top-selling brand on Tmall, achieving a turnover of over 100 million yuan and ranking among the top three in total sales. However, after 30 days of sales, the store's refund rate reached 36.26%, with 11,674 refunds due to unfulfilled orders, accounting for 83.5% of the total 13,976 refunds. Industry experts like Pan Shouzheng from Shouzheng Partners Investment Management Co., Ltd. pointed out that a refund rate exceeding 10% is abnormal, and Quanyou Home’s rate is clearly suspicious.
According to Xu, head of Friends of the Entire Household, the problem lies in the distribution system. He explained that during the "Double 11" rush, customer service was overwhelmed, leading to orders being taken without proper communication. Some areas lacked coverage, resulting in failed deliveries and subsequent refunds. Despite this, the customer service team insists that the product quality is guaranteed. However, these explanations are not entirely convincing. The company claims to deliver to 1,800 cities and has 3,800 specialty stores, suggesting a strong distribution network. A 36% refund rate still seems unreasonable.
Industry insiders have also questioned the authenticity of Quanyou Home's sales figures. They believe that the sales might be exaggerated, and the high refund rate reflects actual sales rather than inflated numbers. Billing, or using fake orders to inflate performance, is a common practice in the industry. Companies often hire "water soldiers" to place false orders, which eventually lead to refunds. This method could explain the discrepancy between the reported sales and the high refund rate.
Quanyou Home's claim of being the "sales champion" is now under scrutiny. The company's official store showed a fine for "false transactions," further casting doubt on its credibility. While the exact nature of the "false trading" remains unclear, it has led to All-Friendly Home being labeled as a "counterfeit actor." The incident highlights the challenges in maintaining transparency and trust in the furniture e-commerce market. As consumers become more aware, companies must ensure their practices align with ethical standards to avoid reputational damage.
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