How Chinese Citizens Cheat to Extort Discounts for Online Shopping 11.11 Tech – 42 minutes ago

Jakarta, CNBC Indonesia – Chinese e-commerce platforms are giving huge discounts on the 11.11 shopping spree which is also known as Single’s Day. It turns out that Chinese people have a way to get the biggest discounts possible even though they only spend a little.

According to Reuters, Lots merchants on ecommerce platforms are offering discounts of up to 40-50 percent during this year’s online shopping spree. Massive discounts on e-commerce platforms such as Alibaba and JD in China are a response to the actions of their new competitors, Douyin and Pinduoduo, which offer discounts throughout the year.

As a result, several studies predict that GMV, namely the transaction value on e-commerce platforms, in China could reach double-digit growth for the first time since the Covid-19 pandemic.

However, published GMV figures only record the value of goods ordered and paid for. The number of returned goods and payment money returned is recorded in the GMV data.

The majority of analysts, according Reuters, even though it is projected that the number of returned goods this year will skyrocket. The reason is that Chinese people are increasingly adept at exploiting big discounts on e-commerce platforms.

Chinese citizens are expected to order as many items as possible during the online shopping binge period in order to get the biggest discounts at the checkout page. However, they will then return items they don’t really need.

Data from Syntun quoted Reuters estimates that total GMV across China’s e-commerce platforms during the 11.11 period this year grew 2.08 percent to US$ 156.4 billion (Rp. 2,454 trillion).

Chinese e-commerce platforms are now holding a weeks-long 11.11 online shopping spree. Previously, 11.11 or Single’s Day was used for a massive 24-hour discount period on November 11.

Bain, a research institute, stated that the majority of Chinese e-commerce consumers this year prioritized shopping for basic necessities during Single’s Day. Products such as hand washing soap, tissue, instant noodles and pet food are prioritized, while electronic equipment and furniture products are not in great demand.

Items that are expected to sell well during Single’s Day are those related to health and the outdoor lifestyle, including global brands such as Nike and Lululemon.

[Gambas:Video CNBC]