A pricing error during a live-streaming sale has left a small Xiahua washing machine store facing a staggering loss of over 30 million yuan, prompting authorities to intervene. The incident occurred last week when the Xiahua Dongshan Specialized Store mistakenly set the prices of all washing machines to 4-5 times below cost price.
pricing snafu leads to massive orders
During the live sale, the store’s e-commerce operators inadvertently set the prices at a fraction of their actual cost. This error quickly caught the attention of customers, leading to a flood of orders. Within just 20 minutes, nearly 40,000 orders were placed, with a total order value of nearly 40 million yuan, involving goods worth over 70 million yuan.
The store, which operates in a small town with a team of only six people, issued a public apology, expressing deep regret for the mistake. The公告 noted that the volume of orders and the amount of money involved were unfathomable for such a small operation, with the estimated loss reaching 30 million yuan.
customers refuse to refund, some scalping goods
Despite the store’s plea for customers to refund their orders, many have refused to comply. Some customers, aware of the pricing error, have even resorted to selling the products at higher prices on third-party platforms, aiming to profit from the discrepancy.
The majority of customers who placed orders were part of specialized scalping groups that monitor for pricing mistakes and act quickly to exploit them. This practice can cause significant losses for businesses and is considered both违规 and potentially illegal.
regulatory intervention
In response to the incident, the Jixi County Market Supervision Administration, where the store is located, has stepped in. The bureau has taken note of this matter, and we are looking into the specific causes of the pricing error, a spokesperson said. Relevant departments have already started an investigation.
The Xuan City Consumer Association in Anhui Province also commented on the situation, confirming that the market supervision authority has reached out to the affected business and requested detailed explanations and materials.
hope for a resolution
The hope is that with official intervention, the store can find a way to mitigate the losses. For a small business like the Xiahua washing machine store, a loss of several million yuan could be catastrophic. The store’s survival may depend on the outcome of the investigation and the measures taken by the regulatory authorities.
implications for e-commerce
This incident highlights the challenges and risks associated with e-commerce, particularly during live-streaming sales. It serves as a cautionary tale for businesses to double-check their pricing and ensure they have adequate measures in place to prevent such errors. For customers, it underscores the importance of ethical behavior and the potential consequences of exploiting pricing mistakes.
The Xiahua washing machine store’s situation is a stark reminder of the vulnerabilities that small businesses face in the digital marketplace. As authorities continue to investigate, the hope is that lessons learned will help prevent similar incidents in the future and protect the interests of both businesses and consumers.
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