Singapore-based online marketplace Qoo10′s global shopping platform Wish+ and its South Korean subsidiary WeMakePrice are experiencing delays in payment settlements to sellers, with TMON now facing similar issues.
On July 17, Qoo10 officially acknowledged and apologized for the payment delays on Wish+ and WeMakePrice and proposed compensation plans. TMON initially denied any issues on their platform. However, TMON sellers soon began requesting customers to cancel purchases due to unpaid settlements, contradicting the company’s claims.
As the situation escalates, the industry anticipates a mass exodus of sellers from Qoo10′s platform. If sellers also leave other Qoo10 affiliates like Interpark Commerce, transaction volumes could significantly drop, complicating payment settlements further.
As of July 23, many TMON sellers have informed consumers about the delays in receiving payments and directed them to request cancellations and refunds from TMON. When the issue first emerged on July 11, TMON dismissed it, claiming no problems existed, but reversed their stance within 10 days.
A TMON representative said, “We are doing our utmost to resolve this quickly, but given the circumstances, we cannot provide a definite timeline.” It was also revealed that TMON has been inefficient in processing refunds. Some consumers were told that card payments would not be canceled, but refunds would be deposited within three to five days after providing their bank account details.
Qoo10 aims to resolve the situation by the end of this month. Founder and CEO Ku Young-bae flew to South Korea on July 18 to discuss solutions with CEOs of WeMakePrice and TMON.
Despite Qoo10′s efforts, sellers are discontinuing their presence on Qoo10 and its affiliate platforms. They argue there is no point in continuing to sell when they haven’t received the payments due to them.
One seller said, “When the issue arose at WeMakePrice, businesses there shut down. Believing TMON was safe, we sold only there, but now the unpaid amount has reached tens of billions of won. It’s better to close both operations than to risk increasing unpaid settlements.”
Industry observers believe Qoo10′s financial troubles have come to light, as this isn’t the first delay in payment settlements. Since the latter half of last year, Qoo10 has struggled to pay sellers, with some waiting for settlements ranging from millions to tens of billions of won.
