Tuesday, April 22, 2025

Chinese Retailer Hits $4.2 Million Loss Do to Employees Mistake—What Happened?

South China Morning Post

A Chinese company recently disclosed that it faced losses exceeding 30 million yuan (US$4.2 million) due to a pricing error made by an employee.

South China Morning Post reported that Little Swan, an electronics retailer, inadvertently listed a washing machine at a dramatically reduced price, leading to over 40,000 orders within 20 minutes. The listing error occurred outside of any planned sales or promotional events.

The washing machines, which typically retail for 1,699 yuan (US$240) and 2,499 yuan, were mistakenly priced online at 299 yuan and 439 yuan, respectively.

Upon discovering the mistake, Little Swan requested customers cancel their orders, but estimates suggest the company’s losses could total around 30 million yuan. The company attributed the error to an employee’s misunderstanding of the discount rules on the shopping platform Tmall.

Little Swan issued a statement expressing regret over a significant error that impacted both the volume of orders and the company financially. The company apologized sincerely to all affected customers and requested their understanding of their difficulties. Further, Little Swan assured that efforts were underway to expedite refunds as quickly as possible.

The employee also posted a plea on social media, admitting, “I realized the mistake 20 minutes later. Even if I sold everything I own, I couldn’t cover the losses.”

Little Swan’s statement noted that many customers appeared to purchase in bulk, suggesting that some may have been businesses intending to resell the items for profit.

Local attorney Zhao Liangshan explained that the company could seek to void the purchase contracts in court due to the pricing error, allowing them to refund customers without delivering the products.

Meanwhile, local market authorities have investigated the cause of the pricing error.

Hot this week

Netflix’s Revenue Jumps 13% in Q1, Driven by Price Hikes and Ad Growth

Netflix's Q1 revenue hit $10.54B, beating estimates, driven by subscriber growth and ad revenue, with a focus on innovative advertising tech.

Eli Lilly’s Stock Rockets 14% as Dow Declines for Third Straight Session

U.S. stock market ends mixed ahead of Easter, with Eli Lilly soaring while Nvidia and UnitedHealth decline amid trade tensions.

WTI Jumps 3.5% as U.S. Sanctions on Chinese Refiners Tighten Supply

Oil prices surged as U.S. sanctions on Chinese firms raise supply concerns, pushing Brent and WTI prices higher ahead of Easter.

Foldable iPhone Incoming: 7.76-Inch Display, Samsung Panel, $2K+ Price

Apple is rumored to launch a foldable iPhone next year, priced between $2100-$2300, exceeding Samsung's foldable models.

Oil Prices Jump Nearly 2% After U.S. Sanctions Chinese Refineries

Oil prices surged over 1.8% amid supply concerns after U.S. sanctions on Chinese refineries importing Iranian oil.

Topics

Netflix’s Revenue Jumps 13% in Q1, Driven by Price Hikes and Ad Growth

Netflix's Q1 revenue hit $10.54B, beating estimates, driven by subscriber growth and ad revenue, with a focus on innovative advertising tech.

Eli Lilly’s Stock Rockets 14% as Dow Declines for Third Straight Session

U.S. stock market ends mixed ahead of Easter, with Eli Lilly soaring while Nvidia and UnitedHealth decline amid trade tensions.

WTI Jumps 3.5% as U.S. Sanctions on Chinese Refiners Tighten Supply

Oil prices surged as U.S. sanctions on Chinese firms raise supply concerns, pushing Brent and WTI prices higher ahead of Easter.

Foldable iPhone Incoming: 7.76-Inch Display, Samsung Panel, $2K+ Price

Apple is rumored to launch a foldable iPhone next year, priced between $2100-$2300, exceeding Samsung's foldable models.

Oil Prices Jump Nearly 2% After U.S. Sanctions Chinese Refineries

Oil prices surged over 1.8% amid supply concerns after U.S. sanctions on Chinese refineries importing Iranian oil.

Semiconductor Rout Sends Nasdaq Down 3%, S&P Falls 2.2%

The New York stock market plunged due to semiconductor export regulations and stagflation concerns, impacting major tech stocks.

‘Buy British’ Is Trending Again—Here’s What’s Driving It

A survey shows 71% of Britons support buying local products amid concerns over U.S. tariffs and rising living costs.

Markets Wobble After Three-Day Rally—Boeing Tumbles, Tesla Shrugs Off Chart Alarm

U.S. stock indices fell as concerns over Trump's tariffs lingered, while Tesla and Nvidia showed resilience despite market declines.

Related Articles