The e-commerce platform Qoo10 and its logistics arm, Qxpress, are under police investigation following numerous vendor complaints about delayed payments and disrupted deliveries. The Singapore Police Force confirmed on September 12 that investigations are ongoing after multiple reports were lodged against both firms.

Numerous vendors have indicated that Qoo10 has failed to pay on time for their sales. One haircare retailer reported that Qoo10 owes nearly $32,000, which led to the removal of its listings from the platform. Ms. Wang from Baby Gallery stated that her company is owed over $11,000, although her vendor dashboard reflects settled payments. She observed a decline in payment processing times since January 2023.

A spokesperson from Annabella Patisserie claimed the company is owed more than $25,000 and has paused product listings on Qoo10 while still maintaining a presence on the platform. Similarly, Chun Cheng Fishery reported that payments for July were only recently received, expressing doubt over the release of all pending payments that they expected by mid-September.

Richard Siaw, managing director of R.S. Solomon law firm, represents five businesses owed significant amounts by Qoo10. He stated that his clients are contemplating legal action after waiting several months for their payments. Moreover, vendors using Qxpress for shipping have also experienced delays.

One online K-pop merchandise reseller noted two missing parcels valued at $3,500, which was collected in South Korea, despite tracking information indicating that it had arrived in Singapore. Other vendors have reported considerable shipping setbacks. Vendor Mr. Vegas Lee mentioned that shipments to the US, which generally arrive within a week, have taken over a month, with some parcels reportedly stuck in processing.

The investigation into Qoo10 began in July when two of its South Korean subsidiaries reportedly failed to meet their payment obligations, raising concerns from South Korean authorities. In August, subsequent reports revealed a significant reduction in Qoo10’s workforce in Singapore, which prompted monitoring by the Ministry of Manpower and support resources for affected employees.

On September 10, Deputy Prime Minister and Minister of Trade and Industry Gan Kim Yong addressed the payment delays raised by Singapore-based merchants, confirming that the government is in discussions with Qoo10 to resolve these issues. Further details can be found in reports from Channel News Asia and The Straits Times.