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You can pay for the price reduction within a year, what does JD want to do

You can pay for the price reduction within a year, what does JD want to do

E-commerce newspaper Pro

2024-06-07 14:31Posted on the official account of Guangdong E-commerce News

You can pay for the price reduction within a year, what does JD want to do

JD.com's new price insurance regulations officially came into effect

Can you believe it? The current price insurance can be insured for one year.

On May 30, JD.com revised the "JD Open Platform Commodity Price Protection Service Rules", which officially came into effect on June 6.

You can pay for the price reduction within a year, what does JD want to do

Source: Jingdong Rule Center

This adjustment mainly adds the concepts of "180-day price insurance" and "365-day price insurance", and refines and supplements the scenarios that do not support price insurance: goods are out of stock, medical insurance card payment orders, seasonal goods, orders without real-name authentication by users, and insufficient funds in the merchant's wallet to pay price insurance fees.

Now at the critical moment of the 618 promotion, JD.com's adjustment of the price insurance service has naturally attracted widespread attention.

It is reported that the price insurance period of JD was originally only 7 days, 15 days, 30 days and 90 days. In order to tilt more traffic in the daily operation of general merchants, they often provide 7-30 days price insurance, so as to obtain relevant service identification. As for the 90-day price insurance period, it is already a long time, and it is usually more common during the 618 and other major promotions.

During the 618 period this year, JD's self-operated products have taken the lead in adding 180-day and 365-day ultra-long price protection services, and then revised the relevant rules of JD's open platform to support third-party merchants to provide price protection for up to 365 days.

After purchasing such goods, consumers can apply for price protection and the system will automatically refund the price difference as long as the price of the purchased goods is reduced due to the merchant's adjustment of the price of the same SKU within one year.

In other words, such a service commitment is basically equivalent to the "lowest price of the year". Even today, when the popularity of price insurance is already very high, JD.com's 365-day price insurance service is really rare.

It is worth mentioning that on the eve of 618, Taobao also changed part of the content of the "Price Insurance Service Standard". Although it did not directly launch the 365-day price insurance as aggressively as JD.com, it added that "the platform can remind consumers who meet the price insurance difference scenario according to the situation".

You can pay for the price reduction within a year, what does JD want to do

Source: Taobao platform rules

In other words, when the price of the goods participating in the price insurance is reduced, the platform may also take the initiative to remind consumers to apply for price insurance to make up the difference. This directly pushes the price insurance from "passive function" to "active service", so that consumers can buy boldly without worrying about the price of goods unknowingly, and the improvement of consumer shopping experience can be imagined.

In addition, whether it is JD.com's extension of the price insurance period or Taobao's initiative to remind the price insurance, it is basically maintaining the platform's low-price mentality. In today's increasingly fierce low-price competition in e-commerce, "price protection" can be said to be a vital line of defense.

You can pay for the price reduction within a year, what does JD want to do

Refunding the price difference of 3 billion a year, what is the purpose of "price protection"?

It has not been long since the major e-commerce platforms fully launched the price insurance function.

For example, although Jingdong had a price insurance service as early as 2008, the user's mind is weak. It was not until 2021 that the "one-click price insurance" service was launched, which can facilitate users to quickly obtain compensation for the price difference.

In the years since, JD.com has made several upgrades to the duration and scope of the price insurance service. For example, in 2022's Double 11, almost all the physical goods participating in the event of JD.com support price insurance, of which more than 500 million goods support 30-day price insurance; In 2023, there will be more than 800 million products with double 11, 30 days and above price insurance.

At this year's Jingdong 618 press conference, Jingdong announced that the price insurance service has saved consumers nearly 3 billion yuan in the past year, and more than 85% of the products in this promotion will enjoy price insurance.

Then we saw that JD.com started with its own products, and further tried 180-day and 365-day price protection, and opened relevant functions to third-party merchants simultaneously.

You can pay for the price reduction within a year, what does JD want to do

Source: Screenshot of Jingdong App

On the other side of Taobao, the earliest time that the price insurance function can be verified was in 2016 Double 11, but it was not until April 2022 that the "price insurance center" function was officially launched, supporting some users to apply for one-click price insurance.

In 2022, on Double 11, Taobao and Tmall have upgraded the price insurance service rules, from the previous price insurance within 15 days after payment to the full price insurance within 15 days after the payment/final payment to the end of the event on November 11, extending the protection timeliness. It was also in this year that price insurance began to become one of the main after-sales services promoted by e-commerce platforms.

Judging from the actions of various platforms, price insurance is now an indispensable service. Especially during the big promotion period, price insurance can largely dispel users' doubts about "rising first and then falling".

Therefore, it can be said that the primary value of price insurance service is to enhance the shopping experience of consumers.

On the one hand, with the price insurance service, consumers can buy goods with confidence even in the face of large price fluctuations. Moreover, in the form of direct refund, consumers do not need to return and repurchase, which is more convenient and cost-saving;

On the other hand, price insurance helps to improve the efficiency of consumer decision-making, reduce hesitation and waiting due to price comparison, and may also increase the sales volume of the platform.

In addition, price insurance also helps the platform to gain an advantage in the process of market competition: when prices fluctuate, price insurance can help merchants stabilize sales and reduce the impact of market fluctuations on e-commerce platforms. It also helps to increase the transparency of market prices, so that consumers can have a clearer understanding of commodity price changes and make more informed purchasing decisions.

In other words, the existence of price insurance makes the price of standard products more transparent, and also allows consumers to feel the preferential strength of the platform more intuitively, which is an important means to cultivate users' low-price mentality in the long run.

You can pay for the price reduction within a year, what does JD want to do

E-commerce promotion, price control is imperative

Of course, the continuous upgrading of price insurance services is beneficial to consumers, but how to implement it has become a new problem.

In the past few years, there have indeed been many consumers who have rejoiced in the success of price protection, but there are also many people who can only watch the price of the goods purchased suddenly drop in price, and the merchants refuse to refund the difference for various reasons.

Behind this, the main reason is that the price insurance rules are too cumbersome, and the regulatory measures of the platform need to be improved.

For example, on the one hand, the conditions for price insurance are more stringent. In the process of price protection, the "same product" recognized by the platform usually needs to meet the product attribute parameters such as product number, product brand, product specifications, product model, product color, product packaging, and product sales method, which greatly improves the difficulty of consumer identification.

On the other hand, there are many additional details for price protection. Take JD.com as an example, it lists a total of 17 scenarios that do not support price insurance. The more detailed the rules, the more opportunities for merchants to "rub the edges" and circumvent them.

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You can pay for the price reduction within a year, what does JD want to do

Source: Screenshot of Jingdong App

Therefore, after the price insurance service is upgraded, even if some merchants set up "365-day price insurance", they can also avoid the compensation difference by changing SKUs, dropping links, etc., without violating platform rules.

For such a situation, if the platform cannot introduce effective restrictive measures, I am afraid that no matter how long the price insurance lasts, it will only be in vain.

Fortunately, we also see that the platform is indeed constantly promoting and improving the original services for the sake of low prices and better user experience.

For example, during the 618 promotion, all platforms have strengthened the price control of event goods. For example, Taobao stipulates that the price of a product during the price control period (or the price after the inclusive coupon) shall not rise by more than 20% compared with the lowest price displayed on Taobao during the price verification period of the corresponding activity, and there should be reasonable reasons.

The verification period mentioned here generally refers to the period from one month before the start of the event to the end of the event.

If it is found that the seller's product price (or the price after the inclusive coupon) violates the regulations - that is, "first rise and then fall", Taobao will take control measures such as warnings and removal activities for the goods.

The same is true of JD.com, on the other hand, which specifically mentions that the price setting of goods is related to the user's shopping experience and rights and interests, and the regulatory authorities carry out normalized control of price violations, requiring merchants to set price activities in compliance.

For consumers who question the merchant's promotional behavior due to the inconsistency between the price advertised in the main picture and the actual situation, price increase promotion, false promotion, price inflated and other behaviors, and the price of the product is verified to be problematic, JD will take governance measures such as warnings, traffic reductions, product removal, store star downgrades, clearance, and deduction of liquidated damages.

From this point of view, the routine of "rising first and then falling" not only makes consumers hate, but also one of the most headaches for the platform.

Author | Li Songyue

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  • You can pay for the price reduction within a year, what does JD want to do
  • You can pay for the price reduction within a year, what does JD want to do
  • You can pay for the price reduction within a year, what does JD want to do
  • You can pay for the price reduction within a year, what does JD want to do
  • You can pay for the price reduction within a year, what does JD want to do
  • You can pay for the price reduction within a year, what does JD want to do
  • You can pay for the price reduction within a year, what does JD want to do
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