Vertical E-Commerce B2C VCotton Suspends Operations

Tencent Tech, 8/20/12

Chinese B2C e-commerce sock retailer VCotton.com has announced it has pulled its entire existing stock of products and suspend all sales activity due to a technical failure in its logistics system. Since February 2012, VCotton's rankings on internet traffic analytics site Alexa have fallen significantly, ranking 111,113 in the last three months, down 64,918 slots.

Editor's Note: A former VCotton employee said that the suspension of sales was not caused by a logistics breakdown but instead due to its Beijing warehouse being seized by government authorities after the company's suppliers sued VCotton for failure to pay outstanding debts. The source added that warehouse employees have been barred entry and the warehouse sealed. A Marbridge Consulting researcher discovered that VCotton angel investor Xu Xiaoping confirmed the rumor on his personal Sina Weibo account.

Keywords: e-commerce Internet B2C Internet traffic logistics VCotton apparel litigation

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