Blue Rabbit team Made this decision based on these reasons below:
1. Damage to the normal interests of sellers.
On July 23 2024, many short videos appeared on TikTok in China. The videos showed that hundreds of sellers gathered at Temu’s Guangzhou headquarters to defend their rights. The reason was that Temu fined these merchants heavily.
The amount of fines ranged from hundreds of thousands to millions of RMB, judging from the photos taken at the scene.
Many sellers and factories stopped operating or went bankrupt due to huge fines. The reason for the penalties was simply the platform regulations, not the market laws and rules.
Chinese sellers gave Temu a nickname: Somali Platform.
To protect the interests of our clients, We do not recommend entering this platform to sell adult sex toys.
2. Reduce product quality
sex toy products are human health products, and product quality must be the primary consideration for the benefit of the public consumers.
However, Temu has lowered the price of its products without a bottom line. This low-price behavior will eventually be transmitted to the manufacturing quality, thereby reducing the overall quality of adult toys by one level, which is irresponsible to consumers.
A video of a Chinese seller shows on TikTok in China that her supply price is 15 RMB, while Temu’s approved sales price is 3 RMB. So unreasonable.
If such a price makes the entire product supply chain unprofitable, how can high-quality sex toys be produced?
3. Disrupting the normal market order
Temu is just a sales online platform, not a manufacturer or producer, and does not know the manufacturing cost of the product.
However, by lowering the product price without a bottom line, some manufacturers with good product quality have no price advantage and their market share has decreased.
It is a great harm to the entire sex toys supply chain that some small factories with low quality can expand the market by reducing manufacturing costs to cater to this low-price strategy.
This damage will eventually be transmitted to the consumer end so that consumers no longer trust the quality of adult sex toys, the market will further shrink, and the interests of all people in the industry will be damaged.
4. Many legal cases, many complaints, and high-profit risk
The Temu platform operates in the same way as its Chinese parent company PDD, They are same DNA.
PDD in China has a large number of lawsuits. The number of legal cases has been firmly higher than other Chinese e-commerce platforms, ranking first. Some people estimate that according to the current case judgments, PDD’s legal cases will not be handled within three years.
In terms of product quality, the number of platform complaints of PDD is 10 times that of Tmall, which is currently the largest e-commerce platform in China. PDD has 428,300 consumer complaints, while Tmall has 45,200 consumer complaints.
As a seller, such a high complaint rate is unacceptable.
Based on different business philosophies and the maintenance of normal market orders, BlueRabbit decided not to have any commercial relationship with Temu.
BlueRabbit team
