Taobao's Juhuasuan Implements Group Buy Auction System
Ebrun, 7/04/12
Juhuasuan, the group buy site of Hangzhou-based C2C & B2C e-commerce site Taobao, has adopted an auction system across all product categories allowing users to bid in RMB 1,000 increments on July 2, resulting in prices reaching between RMB 50,000 and RMB 60,000, with one cosmetics deal exceeding RMB 170,000. Zheng Yu, Alibaba VP and head of Juhuasuan's new mobile portal, said the abnormally high prices were due to malicious false bids. "If a bidder does not pay within 72 hours, they are penalized RMB 1,000 and lose 6 rating points," said Zhang, "so we urge everyone to exercise care when bidding."
Juhuasuan has implemented its open bidding system in an attempt to avoid rent-seeking by waitstaff and other corrupt practices.
Keywords: Zheng Yu Taobao Internet bidding Juhuasuan group buying
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