Online market riots

On October 11th and 12th, Taobao, as the tycoon in e-business industry, suffered the largest protest. Nearly 50,000 netizens has been gathered and intended to give bad comments for some online sellers in Taobao mall, such as Uniqlo flagship stores, Oasa stores, or place orders in these online stores, or refuse to pay for the products viciously.

Four online stores were forced to put off the products from the shelves and quit the Taobao mall already.

The detonation of the market riot is because Taobao mall announced new rules for joining the malls on a new rule, the fees have been raised up largely, so the sellers need to pay 30,000 or 60,000 annual fees instead of 6,000 in the past and guarantee deposit fees have been increased from 10,000 to 50,000, 100,000 and 150,000.

Small and medium sized sellers on the internet can not afford such new fees and the two sides have disputes. IN fact, Taobao is a C2C mode and the aim is to attract low income consumers groups. Taobao mall have marked out some good sellers to establish a good brand through the online mall for the company and make more profit from them.

We can estimate that some small and medium sized sellers will quit from Taobao mall, and the remainders are elite company or enterprises, but it is still a question whether the large company or group could sell good products at low prices on the online market or not.

IBUonline is a B2B portal dedicated for helping foreign trade, and IBUonline also keep an eye on e-business market news.