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Womai Logistics Upgrades Cause 2-Week Delivery Backlog

Beijing Business Today, 10/24/11

Chinese oil and food import/export firm COFCO's subsidiary and food product B2C website Womai has responded to customer complaints that orders placed since October 8 have still not been delivered, stating that the delay was due to warehouse upgrades, but did not mention any resolution or compensation.

According to a Womai representative, the company began both moving to a new warehouse and updating its logistics software on October 7, resulting in significant backlog. The Womai website only alerts users of the delays at the top of its landing page, and makes no further reminders later in the shopping process.

Chen Hu, VP of Chinese B2C online shoe retailer Letao, said that typically it takes 2-3 days for an e-commerce firm to make changes to a warehouse, and companies can choose to begin the process during the evening or when orders are typically slow.

One industry insider speculated that the delays point to internal problems within Womai, stating that Womai doesn't have in-house development but rather outsources software development, which leaves it vulnerable to changes in software R&D personnel that can cause significant delays and complications.

Keywords: e-commerce Internet B2C Letao Womai COFCO logistics Chen Hu complaint


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