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Pricing Error Costs Chinese Shop $4.2 Million in Minutes

2024-09-08 06:34:12.852000

In a shocking incident, a Little Swan Dongshan Franchise Shop in Anhui province, China, suffered a staggering loss of 30 million yuan (approximately US$4.2 million) due to a pricing error made by an employee on August 28, 2024. The error led to extremely low prices on washing machines, prompting over 40,000 orders to be placed within just 20 minutes after customers noticed the deals [dff90293]. In response, the shop requested customers to withdraw their orders and issued a public apology. One customer reportedly purchased three machines at the drastically reduced prices [dff90293]. The shop, which operates with only six employees and has seen minimal profits in recent years, is now under investigation by local authorities regarding the pricing mishap [dff90293]. Lawyer Zhao Liangshan noted that the company may have the option to annul contracts if it can demonstrate that the pricing was a genuine mistake [dff90293]. This incident highlights the potential risks and repercussions businesses face in the fast-paced e-commerce environment, particularly on platforms like Tmall and Alibaba, where pricing errors can lead to significant financial consequences [dff90293].

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