Singapore-based e-commerce platform Qoo10 and its logistics subsidiary, Qxpress, are currently under investigation following complaints from vendors about delayed payments and disruptions to deliveries, as reported by The Straits Times.
Vendors have reported outstanding payments ranging from thousands to tens of thousands of dollars, as well as prolonged shipping delays.
The Singapore Police Force confirmed reports were lodged against Qoo10 and Qxpress, and the investigation is ongoing.
Founded in 2010 by South Korean national Ku Young-bae, Qoo10 operates in multiple countries, including Japan, China, Hong Kong, Malaysia, and Indonesia.
Ku also established Gmarket, a South Korean e-commerce platform that was sold to eBay in 2009. The company also has backing from major investors such as private equity firm KKR and e-commerce giant Ebay.
Vendor complaints
A representative from a haircare retailer – who declined to be named – told The Straits Times that Qoo10 owes the company nearly US$24,000 (SGD 32,000).
“Previously, we received payments, though slightly delayed. We requested to withdraw funds in June, but we’re still waiting, and Qoo10 just tells us to wait.”
Wang, founder of infant products store Baby Gallery, reported that the company owes her over $8476 in payments that have been delayed for more than a year.
“While the vendor dashboard shows the payments as settled, I have yet to receive them. I plan to file a police report,” she said.
Wang has since removed her store’s listings from the platform.
Meanwhile, vendors using Qxpress have experienced delivery delays since July.
An online K-pop merchandise reseller, Sarah, said two of her parcels worth $2697 have yet to be delivered, even though Qxpress tracking showed they arrived at its Singapore distribution centre in late July.
“I’ve called and emailed Qxpress multiple times, but I keep getting the same vague responses. It’s incredibly frustrating,” she added.
South Korean troubles and retrenchments
Reports of Qoo10’s issues first surfaced in July when it was revealed that two of its South Korean subsidiaries, Tmon and WeMakePrice, had failed to pay their vendors.
South Korean authorities launched an investigation, with WeMakePrice reportedly owing nearly 500 vendors around $27.7 million. The platform attributed the problem to a payment system glitch.
In August, the company reduced its workforce in Singapore by 80 per cent.
Hopes of resolution
The Consumers Association of Singapore (Case) has received nine complaints about Qoo10 since September, with customers reporting delayed or undelivered orders, issues with refunds, and difficulties using store credits.
Case president Melvin Yong told The Straits Times that the organisation reached out to the company to address these concerns.
“Consumers generally complained of delayed or undelivered orders, inability to obtain refunds, and the inability to utilise credits in their accounts,” Yong said. “We have contacted Qoo10 to resolve promptly the consumer complaints.”
Meanwhile, Deputy Prime Minister and Minister for Trade and Industry Gan Kim Yong acknowledged in parliament that the government has received feedback from Singapore-based merchants about payment delays.
“We have brought these cases to Qoo10’s attention and requested that they take prompt action,” added Gan.
“The government is also closely monitoring developments in South Korea regarding Qoo10’s subsidiaries and is in touch with Qoo10 to assess whether and how this may affect its operations in Singapore.”
