SINGAPORE: The Singapore Police Force is investigating local e-commerce platform Qoo10 following reports of significant payment delays affecting multiple businesses.
Frustrated vendors, unable to receive their due payments, have sought relief through the Small Claims Tribunals.
The issues with Qoo10 became apparent in July when two South Korean platforms affiliated with Qoo10—TMON and WeMakePrice—failed to pay their merchants.
Both platforms have since filed for corporate rehabilitation in the Seoul Bankruptcy Court, prompting an investigation by South Korean financial authorities.
In response to queries from Channel News Asia, the Singapore Police Force confirmed on 12 September that reports have been lodged against Qoo10, and investigations are ongoing.
Among those affected is Mr Liu Wei Guo, a vendor who has been using Qoo10 since 2014 to sell baby and maternity products.
Mr Liu reported payment delays and has filed a police report after nearly two months of waiting for a payment of approximately S$21,000 (US$16,107) requested in July.
In addition, over S$11,000 (US$8,437) of his sales proceeds remain in escrow and are unavailable for withdrawal.
Other vendors have similarly experienced delays, with some still waiting for payments totaling thousands of dollars.
While one vendor received their payment earlier this week, many others continue to face financial uncertainty, with owed amounts ranging from a few hundred to several thousand dollars.
Vendors pull products and file claims amid Qoo10 payment delays
As payment delays worsen, several businesses have stopped selling on Qoo10.
Well-known brands such as instant beverage retailer Gold Kili and local snack seller Fragrance have withdrawn their products from the platform, citing unresolved disputes.
Fragrance stated it is waiting for further information before deciding on the next steps.
Smaller vendors, particularly affected by the delays, have turned to the State Courts to file claims.
Concerns have been heightened by reports that Qoo10 account managers have left the company, making it difficult for vendors to resolve payment issues.
Many sellers, who had previously relied on their account managers for assistance, now feel abandoned after learning that their contacts have resigned.
Further doubts about the platform’s stability emerged when Qoo10 reportedly laid off 80% of its employees in mid-August.
As the platform’s troubles continue, some vendors have formed a WhatsApp group to discuss possible solutions to the payment delays. However, many feel their options are limited.
Vendors are divided on whether they will continue using Qoo10 if the payment issues are resolved.
While some are hesitant without assurances of financial stability, others, like Wistech Singapore’s operations manager, are open to staying if improvements are made.
Long-time sellers expressed that Qoo10 had served them well until the recent problems but remain uncertain about the platform’s future.
Government addresses Qoo10 payment delays
The ongoing payment delays at Qoo10 have drawn political attention, with Workers’ Party MP Louis Chua raising the issue in Parliament on 10 September.
Chua highlighted the difficulties faced by Singapore-based merchants who are still waiting for payments from the e-commerce platform.
In a written response, Deputy Prime Minister and Minister for Trade and Industry Gan Kim Yong confirmed that the government had received feedback from affected merchants.
He stated that authorities have informed Qoo10 of these cases and urged the platform to take prompt action to resolve the payment delays.
The government is also monitoring developments in South Korea concerning Qoo10’s subsidiaries and is in communication with the company to evaluate any potential impact on its Singapore operations.
Minister Gan advised merchants to escalate unresolved payment disputes with Qoo10 and utilise established channels, such as filing civil claims through the courts.
He further noted that businesses experiencing cash flow difficulties due to the delays can seek assistance by applying for the Enterprise Financing Scheme (Working Capital Loan) through participating financial institutions.
