- tech360.tv
Police Probe E-commerce Giant Qoo10 Over Payment Delays
Singaporean authorities are investigating Qoo10 for payment delays to vendors. Vendors are frustrated with significant payment delays, and some have turned to claims tribunals. Popular brands such as Gold Kili have withdrawn from Qoo10 due to undisclosed disputes.
The situation became more serious when two of Qoo10's Seoul-based platforms, TMON and WeMakePrice, failed to pay South Korean merchants, prompting them to file for corporate rehabilitation in Seoul Bankruptcy Court. The South Korean financial regulators have launched their own investigation into the matter.
In response to enquiries, the Singapore Police Force confirmed that reports had been filed against Qoo10, and investigations were currently underway. Vendors such as Mr. Liu Wei Guo, who has been selling baby and maternity products on Qoo10 since 2014, have expressed frustration with significant payment delays. Mr. Liu stated that, despite requesting approximately S$21,000 (US$16,100) in sales proceeds in July, the funds had not been disbursed after nearly two months.
Furthermore, Qoo10 is holding over S$11,000 of Mr. Liu's sales proceeds in escrow, exacerbating the financial burden on vendors. Of the 11 vendors interviewed by CNA, eight confirmed that they were still waiting for payments from Qoo10, which ranged from a few hundred dollars to thousands.
As payment delays continue, many vendors, large and small, have decided to remove their products from the platform. Notable brands, such as Gold Kili, known for instant beverages, have ceased operations on Qoo10 due to undisclosed disputes. Fragrance, a seller of local snacks, has also removed their products from the platform.
Smaller vendors have been particularly affected, with some turning to the Small Claims Tribunals to recover their funds. Amberlys Cakes & Flowers' operations manager, Angela Lee, disclosed that outstanding withdrawals totalling approximately S$2,400 since July prompted her to file a small claim against Qoo10 in late August.
Workers' Party Member of Parliament Louis Chua has drawn attention to the issue, raising concerns in Parliament about the payment delays. Gan Kim Yong, Minister for Trade and Industry, acknowledged the merchants' feedback and urged Qoo10 to address the delays promptly.
Despite repeated attempts to contact Qoo10 for comment, the company has not responded to CNA's emails. Visits to Qoo10's office were restricted, indicating the e-commerce platform's lack of transparency during the ongoing investigations.
Singaporean authorities investigate Qoo10 over payment delays to vendors.
Vendors express frustration over significant payment delays, with some turning to claims tribunals.
Popular brands like Gold Kili withdraw from Qoo10 due to undisclosed disputes.
Source: CNA