Qoo10 under scrutiny over late payments to suppliers

Police are reportedly investigating Singaporean e-commerce platform Qoo10 after local businesses were hit with payment delays.

In a statement to CNA, the Singapore Police Force said reports had been filed about Qoo10 and that investigations were ongoing.

Due to payment delays, several vendors have reportedly withdrawn their products from the platform. This includes brands large and small, such as instant drink vendor Gold Kili and shut up perfume seller, according to CNA.

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In addition, some sellers have reportedly turned to small claims tribunals operating within state courts for assistance.

MARKETING-INTERACTIVE reached out to Qoo10 for more information.

The decision comes after South Korea said it would provide $400 million in financial support to small businesses that were hit by payment delays from Qoo10’s two e-commerce platforms, TMON and WeMakePrice, in early August, Reuters reported.

According to Reuters, the payment delays prompted South Korean financial authorities to launch an investigation, with some providers cutting ties with the platform and customers demanding refunds.

E-commerce platforms are estimated to have failed to process payments worth 210 billion won (152 million US dollars).

Then, Deputy Prime Minister and Minister of Trade and Industry Gan Kim Yong said the government was closely monitoring developments in South Korea regarding Qoo10’s subsidiaries.

Gan added that the government is also in contact with Qoo10 to assess whether and how this could impact the company’s operations in Singapore.

“Sellers experiencing late payments should report their concerns to Qoo10. If concerns remain unresolved, there are established procedures to help sellers resolve trade disputes, including debt recovery,” Gan said.

“For example, they may consider filing a civil lawsuit in court. Traders who are experiencing cash flow difficulties due to payment delays may contact any of the participating financial institutions listed on the Enterprise Singapore website to apply for the Enterprise Financing Scheme,” he added. \

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