Qoo10 Deals. (Strictly no referral link) - Part 7

dan1982

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why u guys keep mentioning ***10 will close down? :unsure:

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To me, from the onset, I have been a long time user since the Gmarket days. The experience has became worse over time than better.

I cannot speak for others, but I say this from my working in finance POV:

1. Loss making biz that relies on giving out discounts to gain market share at cost to own profit margin. People are waking up to fact that the gravy train is probably over. I just do a simple maths based on the ST report and what we know:

Seller on platform gets sales price less 12% Qoo10 cut. So gross margin = 12%
U look at vouchers offered: $10 off $80 (12.5%), $20 off $120 (16.67%), 30% off min $15, cap at $5.

After voucher offsets, it is even making a loss at gross level. I am already ignoring the fact that they will need to pay a payment gateway processing fee as a percentage of revenue here already (Master card, Visa, AMEX, Grabpay, eNets, Paynow, etc... Using Q*Coins is a fallacy as they still incur upfront cost when the buyers buy Q*Coins using mentioned payment methods).

For time sale events, it could be worse as they may enter into bulk contracts to secure stock and is in turn subsidising the end consumer. I bought Switch Mario Strikers Battle League at $39.90 when cost price is probably $50+, close to $60 as an example. The shop pax even told me 买到赚到。

Maybe with cheap credit then, they could go on such promotions to gain market share, but now, with credit rates being up, their funds are tied. Ordinarily, what Shopee and Lazada has done was to bring in bank and credit card merchants to help bear some of this subsidising of consumers, but these have dried up at Qoo10 vs at Shopee or Lazada as they lost too much marketshare and isn't that attractive vs Shopee and Lazada as partner. So Qoo10 needs to tank even more and yet the consumer gets lesser discounts now. On top of this, they need to pay rent, wages and other operating costs and also financing costs on loans taken out too.

2.Kiasi'ness of Singaporeans. We have seen Sinkies at their worst during Covid over Maggie Mee and Toilet Paper. When this is about their own money and wallet? Need I say more?

3. Cashflow issues being reported by media. Market fear. Read on how people withdraw funds from First Republic Bank and deposited them in the bigger banks. Then the top 11 US banks got together and then had to deposit $30 billion back at First Republic to ensure it still had money in reserves to sustain the business. The more people withdraw and put inside the big banks, the more the big banks will deposit back to First republic to prop it up to ensure confidence. After Qoo10's delay in paying out got reported, people got scared and when sellers stop wanting to sell on the platform and people keep getting rejected orders, people want to jump too. Unless it gets a big angel investor in to backstop all this flight of funds and its widely reported and cashflow issues resolved, people will just take flight.

Got more points but I am tired now.
 
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dan1982

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I made 2 orders past 3 days. 1 shipped w personal delivery today. The other preparing shipping with Q Prime. Local food stuff with high sales volume in Qoo10. Maybe they are dragging the smaller sellers? Will not be surprised, as those smaller sellers are the ones that do not have much USP and other sellers can take their places much easier? Stick to those that are doing time sales specials if spending Qoo10 currency. Else, can consider taking biz to other platforms with 25th coming.
 

watzup_ken

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To me, the recent development with Qoo10 is a big red flag to me. I've been user of Qoo10 for many years, but this is probably one of the worst year I have seen. And it is not a gradual decline, but at the start of this year, you can see they literally pulled out all the big discounts. And as I mentioned before, Qoo10 is very dependent on big value coupons to entice people to buy because the products tend to be marked up quite a fair bit more than the likes of Shopee and Lazada. It is not always the case, but this is my general observation. So they are likely in some kind of fund conservation state, which may help their financial situation, but will not help to bring in revenue. Given that cheap credit is gone, you can only take so much lost before you have to wind up. I may be wrong, but this is what I think we are seeing here. Qoo10 may not spend as extravagantly as the likes of Shopee who hires big names as their brand ambassador from time to time, but deep cuts at Sea suggests challenging conditions due to lack of cheap credit and investors for funding, and lower sales due to eroded consumer spending power.
 

twinkle07

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qoo10 all along no big discount... or do sales every 1.1, 2.2, 3.3 like the other 2 platform..
only last year then start doing it more...

mai keep spreading fear...
obvious who stands to gain from it...
so worried then ask the seller when can send out item before buying...
 

LIN_JOEL

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qoo10 all along no big discount... or do sales every 1.1, 2.2, 3.3 like the other 2 platform..
only last year then start doing it more...

mai keep spreading fear...
obvious who stands to gain from it...
so worried then ask the seller when can send out item before buying...
erm.... Gmarket/Q10 last time discount very good de.
$500 off $100 for electronic / PC
 

wongminmin

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no matter how bad q10 is, they will still give daily coupons in the previous years.

actually u can see for yourself....
jan 2023... they stopped giving big coupon, only small value coupon daily
feb 2023.... they give small value coupon with some slightly higher value coupon
mid march 2023... they removed daily coupon

then their stuff/sellers are getting lesser
then traffic also fall out of 20 positions...... meaning lesser people are surfing on the platform
then most of their sponsored listing are either food or drinks.

my qxpress from evening come, now as early as 8.15am. :eek:

My guess their strategy are
-using f&b/daily necessities as min to keep their operational running.
-using reward scheme to minimize their coupon spending.
-only give coupon during special day e.g 4.4
-sponsored a few listing to attract crowd
-maybe continue to lure people into wizfarm. :unsure:

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watzup_ken

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qoo10 all along no big discount... or do sales every 1.1, 2.2, 3.3 like the other 2 platform..
only last year then start doing it more...

mai keep spreading fear...
obvious who stands to gain from it...
so worried then ask the seller when can send out item before buying...
It is true that Qoo10 usually starts cutting on their discounts at the start of the year, but this year is an exceptional year. I have never seen their coupons shrink this drastic this quick. Usually they still do reasonable sale for CNY, which I don't see this year. And you can tell this is in line with every company out there that's cutting cost left right and center because they no longer have cheap credit lines and less or no people willing to invest given the high "risk free" deposit rate out there. Qoo10 don't live in a bubble where they are immune to the developments in the macro environment. I do buy things from Qoo10 occasionally, and I certainly don't hope they go south. Not spreading fear, but just to caution people against parking money in Qcoin because one cannot take it out.
 

twinkle07

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since 2023 start, which platform got give good discount...
all clamp down...
 

yiron

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since 2023 start, which platform got give good discount...
all clamp down...
Shopee also kenna nerfed quite jialat. Coupon discount % from bad to worse, and mostly only usable with Shopeepay. Most discount is in the form of coins back, which has a 2 month expiry, usage cap per order, and reduces the order discount when used.

Surprisingly in recent times there are certain items that are cheaper in Qoo10 than Shopee after factoring their respective discounts. Hopefully Qoo10 get back on its feet and take on more merchants.
If Qoo10 goes into obscurity, it's bad for shoppers of other platforms like Shopee and Lazada as well given the reduced competition.
 

coey

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since 2023 start, which platform got give good discount...
all clamp down...

Where were u ? Since the start of 2023 , the 20% wisfarm voucher was the best ever.
Can earn from wisfarm , get voucher and hoot things..
Would have hoots lots of things if i had knew they pull the plug on the 20% voucher.
 

David Lai

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they finally cut everything from those multi account banned users liao…
no more spinning allowed as of today…
was able to spin for the past 1.5 years, getting quite a few qcoins…
 

blueboat

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With the reduction of vouchers on q10, I guess the next big round of vouchers would be 4.4?
 

hyperfuse

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Where were u ? Since the start of 2023 , the 20% wisfarm voucher was the best ever.
Can earn from wisfarm , get voucher and hoot things..
Would have hoots lots of things if i had knew they pull the plug on the 20% voucher.
wizfarm 20 percent not the best. Because only capped max amount at $500. so the discount only $100. Those buying more expensive items, discount only $100 max.

last year got Monster coupon of 20percent and cap at 2.5k. so the discount was $500 max.
 
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