On social media, there are also a number of consumers who have turned their backs, and the option to purchase freight insurance at their own expense has been eliminated due to the recent high number of returns。
It is understood that freight risk insurance was initially introduced in 2010 to reduce the cost of consumer refunds. As a result of a good market response, the risk is becoming a “speculation” for major electrical platform collectors。
However, in the past decade or so, freight risk, while optimizing the shopping experience, has contributed to a certain increase in the return rate and even to the emergence of a “false-false” “professional wool party”, which has significantly increased the pressure on businesses and insurance companies to operate。
Where is the future of freight risk when parties lose their motivation? How should the gaps in the compensation mechanism be closed
01
"fearless list" pushs up the return rate
“close the fear of fewer orders and a lower rating of the shop; otherwise, the amount of returned goods is frightening.” recently, a female brand manager, wu fay (alias), was also considering closing off freight insurance services. For almost two years, the return rate for her shop rose sharply to 75 per cent. She had no choice but to tell reporters: “the courier company, the insurance company are making money and the platform has commissions, and the loss is (only) on my own.”
Data show a high rate of return of goods such as footwear, accessories, etc. In electricity sales. According to u. F., competition for women's clothing is increasing, and consumer goods are normal compared to three. She states, however, that under the “repatriated goods-free” model, some of the customers' lower orders are too “exultious” and “the same clothes, two colours of three yards each, are sent back two of them half way”
For electricity vendors, the abnormally high rate of return involves a range of expenses. U. F. Wrote down a bill to journalists and, as the rate of return rose, the premium per freight premium increased from a few cents to $4. 3 and exceeded the freight charges. In addition, once the buyer returns the goods, in addition to the freight costs, they involve the labour costs of the loss of the goods during the transport and the re-calculation of the shelf。
“more worrying is the fact that, in the case of seasonally strong clothes with short distribution cycles, there is no chance of re-emergence in the short term, leading to a backlog of stocks.” u. F. Has revealed that in response to this situation, some of his peers have made pre-sale deliveries, not on the basis of actual orders, but on the return of the first customers to the second customer to re-export the goods in order to avoid risk。
“the wool comes out of the sheep and, if the commercial operation costs increase, either the price is raised or the work is reduced.” in social media, mr. Zhang, a garment electrician, said that he had given three months of freight risk this year, with a rate of return of 68 per cent, which had dropped to less than 40 per cent after closing, and that although the order volume had decreased, much trouble had been saved。
02
"professional fraud" forms an industrial chain
The higher rate of return is only one aspect, and the design of freight insurance itself has revealed a number of deficiencies that have left the wool party a window of opportunity. Specifically, the amount of compensation for freight insurance is relatively fixed, but if the option is to send it back on its own, there is room for negotiation as to the actual cost of the return, and some buyers return the goods in bad faith after the bulk billing and draw the difference between the settlement compensation and the delivery fee。
U fei and the wool party have fought several times. She told reporters that sometimes the parcels sent were returned, and the refunds were directly on the bill of lading, which appeared to be fraudulent. “the average account number is new, with dozens of small items of small items, such as hats, hairs, etc., which weigh less than the first and lower unit price, and telephone calls were made, either empty or unaccepted.” ufi said。
Journalists found that individual enterprises in the express delivery industry were also part of the chain of deception. "first down to $3. 5" "over $8 apiece" as can be seen from the search for keywords on social networking sites, there are even express delivery stations and small mail platforms that publish a “sweet tutorial” to recruit part-time persons who cooperate in “swipe back” and from which they earn in lieu of the cost of dispatch。
In june of last year, the founder of the inman dress brand, zhang huai, indicated that there was a special renting of warehouses for “freight-risk wool”. “this `business' is a large-scale operation that buys 10,000 a day, earns a freight risk difference of $4,000 and earns 40,000 a day.”
In addition to the malicious return of goods, there are illegal elements who cheat by “false orders”. In a case that was discovered last september by the jiangxi ping commune police, the suspect purchased several mobile phones, registered a large number of internet stores using his or her personal identity information and close family information, forged a process of trading for his or her own purchase of large quantities of goods, and purchased “freight insurance” at the same time. After confirming receipt of the goods, he or she filed an application for a refund for an insurance accident that had not occurred and fraudulently received over $1 million from the platform in respect of commodity freight insurance。
“the behaviour of the wool party is suspected of being unlawful and may amount to insurance fraud if the amount of the insurance money is greater.” zhang qingxiang, a lawyer at yingxiang law office in beijing, stated to journalists that the existence of fraud to secure “black ash production” places a considerable burden on merchants, insurance companies and electrical platforms, causing ecological damage to electric operators and indirectly harming consumers。
03
Bringing freight risk back to what it was supposed to be
For consumers, online shopping is physically unattractive and ineffective, and the absence of freight insurance means that trial costs have become higher and may even reduce the appetite for shopping. However, the use of freight charges such as wool, excessive turnover of goods, etc., does make the merchants suffer。
How can we combat fraud without “mistake” consumers
“the key to the fight against the wool party is the effective identification of fraud.” according to zhang qingxiang, buyers with intent to commit fraud differ from normal buyers in their shopping patterns, and the platform and insurance companies should strengthen their big data analysis, monitor consumer platform credit scores, consumption records and return records for similar commodities, the number of returns during the year, identify and address potential frauds in a timely manner, and encourage vendors to promptly report unusual cases, and develop user blacklists and early warning mechanisms。
In the view of industry, malicious “sauers” are industry hazards that cannot be managed effectively by one side alone. Cooperation should be established between platforms, businesses and insurance companies to enhance data access and sharing. There is also a need to break the “information isolation” model between electrical platforms, so that accounts that have had bad behaviour on one platform can be quickly identified on other platforms。
Choi lee, professor of the department of digital economy at shanghai university of finance and economics, suggested that a consumer credit evaluation mechanism, as well as a freight rate floating mechanism, could be introduced for the buyer's self-insured freight insurance, with a more precise pricing of premiums based on risk indices。
Zhang zheng zheng zheng indicated that insurance companies should further optimize risk assessment models for freight risk by including more variables that affect freight risk, such as the type of goods, transport distance, historical recovery rates, etc., in order to improve accuracy and fairness of pricing。
For logistics companies, real transaction and logistics data should be provided to help insurance companies assess risks more accurately and to improve the standardization and standardization of logistics services, reduce the loss of goods during transport and reduce the rate of reimbursement for freight risk。
In the recent past, a number of electrical platforms have improved freight insurance mechanisms to better balance user experience and commercial interests. For example, in september last year, an electrical platform launched a “repatriate treasure” service at the return chain, which reduced the return cost for businesses by at least 10 per cent, while further optimizing models to improve the ability to identify unusual behaviour。
“on a long-term basis, only a further refinement of the compensation mechanism and a virtuous interaction between the various parties in the chain will contribute to the healthy development of the freight risk market and return to the goal of a multi-party win.” zhong zheng zheng zheng said。
