We live more and more in an on-line world but there are times where brick and mortar stores seem more safe and secure. This week in Korea two online shopping platforms face potential bankruptcy because of reported delays in payments to sellers and refunds to customers.
The sudden financial troubles of the struggling shopping platforms were precipitated by poor financial management by Qoo10, a Singapore-based e-commerce giant that operates the two Korean subsidiaries. Some commentators claim the company kept the cash payments in order to expand its business by purchasing other platforms and grossing up its balance sheet to become a listed stock company. Since earlier this month, TMON and WeMakePrice have failed to disburse earnings to sellers on their platforms. This week, Sellers began to leave the platforms in droves due to mounting fears that they will not be paid. Customers who purchased online tickets for flights and hotel reservations using these platforms are also encountering difficulties in obtaining refunds since they did not receive their purchased items. 
I remember when Amazon first started selling products. No one thought people would buy clothes on-line but Amazon gained trust by giving customers a free return policy. Now you can buy just about anything through the Amazon platform. But in other countries, payments and service can be suspect. It may take months for Sellers to be paid. I would assume some Sellers or end Vendors will not confirm product shipping or tickets until they are paid, leaving the customer in a bind – – – paying for something they did not receive. Korea Times story indicated that several customers who purchased tickets for theme parks or air & vacation travel have not received refunds on failed purchases. Consumer protection laws vary from country to country but the old adage still applies “Buyer Beware.”
