garrox
11 hours ago
This should help NexPlat and RXMD.
Alibaba’s Tmall waives annual service fee, while Taobao relaxes ‘refund only’ policy
From September 1, Tmall will waive the annual software service fee it charges merchants
Saturday, 27 July 2024, 7:00:AM
Chinese e-commerce giant Alibaba Group Holding is waiving the annual service fee for merchants on Tmall and loosening its “refund only” policy to reward sellers with good track record on Taobao.
Tmall, home to mainly established brands and sellers, from September 1 will waive its annual software service fee that used to range from 30,000 yuan (US$4,145) to 60,000 yuan for merchants in various categories, Alibaba’s main e-commerce unit Taobao and Tmall Group (TTG) announced on Friday. Alibaba owns the South China Morning Post.
Existing Tmall sellers that paid the service fee in advance will receive a refund, while new merchants joining the platform after September will be exempt.
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In a separate announcement, Taobao said that its refund-only policy will be optimised to provide merchants with good track record on the marketplace more autonomy in handling refund requests from customers.
For merchants with an experience rating of 4.8 and above, Taobao said it will not intervene proactively to support consumers’ requests for refunds. Instead, it will encourage the buyer and seller to negotiate, according to the TTG statement. For stores with lower ratings, Taobao said it will give them autonomy in varying degrees.
Taobao and Chinese rival JD.com offered the refund-only policy in December, following an option that budget online retailer Pinduoduo has had in place since 2021. The policy allows shoppers to receive a refund for a product they are unhappy with, without having to return it. This arrangement has since sparked concern among some sellers about potential abuse of the terms.
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While that policy has safeguarded consumer rights, it has also been exploited by some freebie seekers who have “harmed the legitimate rights of businesses”, TGG said.
Taobao’s latest move aims “to create a more positive and healthy e-commerce ecosystem by ensuring consumer rights and improving business environment at the same time”, TTG said.
These initiatives by TTG reflect the group’s efforts to boost support for merchants amid increased competition from main domestic rival JD.com and the challenge from younger platforms such as PDD Holdings’ Pinduoduo and ByteDance-owned Douyin.
Earlier this year, TTG introduced artificial intelligence tools and functions for merchants to help improve services and attract new customers.
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Copyright © 2024 South China Morning Post Publishers Ltd. All rights reserved.
garrox
3 days ago
RXMD is losing another competitor.
‘A difficult decision’: Walmart to shutter all US health care services and hunker down on inflation-fueled growth in grocery business — what this means for consumers
The closures mark a major U-turn for the big-box retailer.
Jul 24, 2024
Inflation is proving to be a curse and a blessing for big-box retailer Walmart (WMT).
On April 30, the chain announced that it plans to close all of its health centers and shut down its virtual care services due to “the challenging reimbursement environment and escalating operating costs.”
Walmart described the move as “a difficult decision” but stated the “lack of profitability” has made the healthcare business “unsustainable… at this time.”
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But those same cost pressures nipping Walmart’s fledgling healthcare business in the bud have proven a boon to the retail giant’s grocery business.
On the same day it announced the end of Walmart Health, the retailer set in motion its largest private brand food launch in 20 years — capitalizing on inflation-fueled growth in its grocery business to introduce Bettergoods to the market. Here's what that means for consumers.
Killer health care costs
Walmart launched Walmart Health in 2019 with the mission of improving health care affordability and accessibility.
In its five-year lifespan, the health business has opened 51 health centers across five states: Arkansas, Florida, Georgia, Illinois and Texas. To complement those brick-and-mortar locations, it also acquired telehealth provider MeMD for an undisclosed amount in 2021.
However, in light of Walmart's recent news, healthcare startup Fabric (formerly known as Florence) inked a deal in June to aquire the rights to MeMD.
It is not clear exactly when each clinic location will shutter, but insiders told CNBC they expect the closures to occur in the next 45 to 90 days. However, the closures will not stretch to Walmart’s nearly 4,600 pharmacies and more than 3,000 vision centers across the country.
This news is a major U-turn from a Walmart Health announcement in March, when Dr. David Carmouche, senior vice president of Omnichannel Care, said the unit “will be growing in a big way” in 2024 — with plans to open 28 new Walmart Health center locations, including in two new states: Missouri and Arizona.
One reason why Walmart is exiting this business is the “challenging reimbursement environment.” This revolves around the rising cost of healthcare in the U.S., which has ticked up for the past several decades due to three main factors, according to a 2023 study by the Peter G. Peterson Foundation: population growth, population aging, and rising prices for healthcare products and services.
A 2023 article by Boston Consulting Group stated that healthcare providers “need further substantial reimbursement increases from insurers to offset the double-digit cost jumps and structural economic challenges faced by health systems.”
In other words, the government (through Medicare, Medicaid, the Children’s Health Insurance Program (CHIP) and subsidized Affordable Care Act (ACA) marketplace plans) and private health insurers would have to raise their rates (how much they charge for insurance) to cover health services so that businesses like Walmart Health could turn a profit.
With that necessity proving unlikely in the near future, the retail giant made the “difficult decision” to shut up shop.
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Booming grocery business
When one door closes, another opens — at least that’s the case for Walmart. The big-box retailer is debuting a new grocery brand, Bettergoods, which it describes as “a new elevated experience that delivers quality, unique, chef-inspired food at an incredible value.”
The new brand includes 300 items spanning frozen goods, dairy, snacks, beverages, pasta, soups, coffee, chocolate and more — all costing less than $15, with most products available for under $5.
According to a CNBC analysis, this marks a major effort from Walmart — the country’s largest grocer by revenue — to retain the shoppers it has attracted during a period of high inflation.
In 2023, food prices increased by 5.8%, per USDA data. While that was an improvement from the prior year’s 9.9%, the cost of groceries is still proving a major pain point for U.S. consumers — and a big boon for the nation’s grocers.
In its most recent fiscal year, ending January 2024, Walmart’s net sales for groceries in the U.S. rose nearly 7% year over year to $264.2 billion.
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