Hundreds of merchants protested at Temu’s office in Guangzhou, China, this month, criticising the platform’s refund policies and fines that they claim are eroding their profits. The protests involved approximately 300 individuals, with around 80 successfully entering the 30th floor of the building before being dispersed by police. The demonstrators were primarily small business owners using Temu, an e-commerce platform known for its low prices and operated by PDD Holdings, which also runs Pinduoduo.
The merchants objected to Temu’s policies that impose fines for customer refunds and complaints. One merchant reported a significant financial loss, having been fined $410,000. Additional grievances include the platform’s practice of issuing refunds without requiring the return of goods, which merchants argue allows customers to keep products for free.
Temu responded by stating that it does not profit from merchant fines and that any fines collected are passed on to consumers. The company also acknowledged the protests and indicated it is working to address the merchants’ concerns.
The protests come amid growing frustration among Chinese merchants, who feel exploited by foreign shoppers taking advantage of the platform’s refund policies. This unrest reflects broader tensions over the balance of power between global e-commerce platforms and their vendors.
Temu’s rapid international growth has significantly boosted PDD Holdings’ market value, contrasting with the struggles of other Chinese e-commerce giants like Alibaba and JD.com in the post-zero-COVID economy.
