The Singapore Police Force is investigating e-commerce platform Qoo10 following complaints from vendors about delayed payments. Vendors have lodged police reports and sought help from the Small Claims Tribunals of the State Courts. The police confirmed on Sep. 12 that investigations are ongoing.
Background
The investigation was triggered by multiple vendors reporting significant delays in receiving payments from Qoo10. One vendor reported being unable to withdraw around S$21,000 from his seller account, with another S$11,000 held in escrow. Other vendors have reported amounts ranging from hundreds to thousands of dollars. Additionally, over 20 merchants using Qoo10’s logistics service, Qxpress, have faced delivery issues, with some parcels remaining undelivered for extended periods.
Financial troubles
In July 2024, Qoo10’s Seoul-based platforms, TMON and WeMakePrice, failed to make payments to merchants due to a liquidity crisis attributed to “Qoo10’s aggressive merger deals,” according to Korea Times. Both platforms later filed for corporate rehabilitation in a bankruptcy court. Qoo10’s founder and CEO, Ku Young Bae, pledged to “give up everything he owns” to resolve the crisis. Despite being one of Singapore’s first e-commerce platforms, confidence in Qoo10 has been shaken, with users facing similar issues.
Impact in Singapore
Vegas, a small business owner in Singapore, reported that around 20 of her parcels, totalling S$2,500, have been unaccounted for since early August. She received conflicting information from Qxpress’s customer service, with emails citing “system issues” and helpline staff claiming the items were in Los Angeles pending customs clearance. The stress of the situation has been overwhelming, with clients threatening to ask for refunds.
Conflicting information from customer service
Vegas’s cofounder visited the Qxpress warehouse on Aug. 30 and found only four staff working. They were told the items had left Singapore, but a subsequent call to customer support on Sep. 9 revealed the parcels only left the facilities on Sep. 5. The lack of clear communication has left many vendors in the dark, fearing the loss of both items and money.
Many customers affected
Matthew, another affected customer, reported knowing over 20 users facing similar issues with Qxpress. They have collectively tried to track their parcels but have been unsuccessful. A reply from Qxpress’s customer service attributed the delays to a “technical issue with their IT systems.” The company’s Google reviews reflect widespread dissatisfaction, with a rating of 1.4 out of five stars.
Issues with Qoo10 purchases
A reader of Fathership reported spending around S$300 on Qoo10 but has been unable to reach customer service about her parcels. The app showed an “error” in shipping status, and the platform’s return/refund process requires confirming the order and releasing funds to the seller, unlike other e-commerce platforms. This has left her delivery status marked as “completed” despite not receiving any parcels.
Parliamentary reply on Qoo10
During a parliamentary session on Sep. 10, Member of Parliament Louis Chua raised concerns about Qoo10’s payment delays. Deputy Prime Minister and Minister for Trade and Industry acknowledged the issue, stating that the government has received feedback from affected merchants and has urged Qoo10 to resolve the delays promptly. The government is also monitoring developments in South Korea and assessing their impact on Qoo10’s operations in Singapore. Merchants facing payment delays are advised to raise their concerns with Qoo10 and consider filing a civil claim if necessary. Those experiencing cash flow difficulties can apply for the Enterprise Financing Scheme (Working Capital Loan).
Qxpress separation from Qoo10
On Jul. 27, Qxpress announced that Ku Young Bae had stepped down as CEO. The company distanced itself from Qoo10’s troubles, claiming independent operation. Reports of Qxpress’s separation from Qoo10 emerged on Aug. 20, with private equity firms planning to convert their bonds to common stocks, potentially diluting Ku’s stake if all financial investors take action.
