S'pore vendors' payments delayed by Qoo10, police investigating, Qxpress deliveries also not completed

The Singapore Police Force are investigating e-commerce platform Qoo10.

This was after vendors who have had their payments delayed have lodged police reports and turned to the Small Claims Tribunals of the State Courts for help.

The police confirmed with CNA on Sep. 12 that reports were lodged against the firm and investigations are ongoing.

What happened

CNA reported that one vendor could not withdraw around S$21,000 worth of sales proceeds from his Qoo10 seller account, and holding another S$11,000 of sales proceeds in escrow on the seller's behalf.

Some vendors that CNA spoke to were owed amounts ranging from hundreds to thousands.

Besides the delayed payments, more than 20 merchants using Singapore-based South Korea logistics service Qxpress said they have been facing issues with delivery of products to buyers.

One seller, who spoke to Mothership, shared that she has over 20 parcels amounting to S$2,500 shipped out, but they have not been delivered.

Bigger brands, such as Gold Kili and Fragrance, have also pulled their product listings from Qoo10.

This follows reports of Qxpress's separation from its parent group Qoo10, as well as Qoo10's financial woes.

Channel 8 News recently reported that Qoo10 had laid off 80 per cent of its employees in mid-August.

Qoo10 is a non-unionised company in Singapore.

Financial troubles

In July 2024, two of Qoo10's Seoul-based platforms, TMON and WeMakePrice, failed to make payments to merchants in South Korea, reportedly due to a liquidity crisis caused by "Qoo10's aggressive merger deals", according to Korea Times.

They later filed for corporate rehabilitation in a bankruptcy court.

South Korean founder and CEO of Qoo10 Ku Young Bae also said he would "give up everything he owns" to help resolve the liquidity crisis.

The confidence that has been shaken appears to be spreading, despite Qoo10 being one of the first e-commerce platforms in Singapore.

Singapore users of the e-commerce platform Qoo10 have also been facing issues, with one customer saying she has yet to receive her parcels and was unable to contact the merchant.

Impact in Singapore

A small business owner in Singapore, Vegas, who uses Qxpress to ship out her parcels, told Mothership that she has around 20 parcels totalling around S$2,500 that have been unaccounted for since the beginning of August.

For one of her parcels, it has been 36 days since she sent it out for delivery.

When she reached out to their support helplines, she received conflicting information.

"Their customer service email claims they’re having 'system issues' and are 'working hard to export the parcels', but their helpline said my items are already in LAX, 'pending customs clearance'," she said.

Conflicting information from customer service

When her cofounder made a trip down to their warehouse on Aug. 30, only four staff were working the "near-empty lines", Vegas said.

He was told then that their items had already left Singapore.

However, when they called the customer support helpline on Sep. 9, they were informed that their parcels only left their facilities on Sep. 5.

She shared that the stress from being kept in the dark is "insurmountable", and expressed her fear of losing both her items and money.

She also has to manage the expectations of her clients who have yet to receive their orders, with some even saying they might ask for a refund.

Having used Qxpress since 2019, she usually had little issues with the delivery, which typically took around seven to 12 days.

Many customers affected

Another affected customer, Matthew, said he knows more than 20 affected users of the logistics company facing the same issues.

They have gathered together to share information and reach out to Qxpress about their parcels but have been unsuccessful in tracking their parcels.

A reply from the customer service centre said shipment delays were caused by a "technical issue with their IT systems".

Many have also expressed issues with shipment delays on Qxpress Google reviews, which currently displays a rating of 1.4 out of five stars.

Issues with Qoo10 purchases

A Mothership reader who bought an item from the Qoo10 e-commerce platform said she has been unable to reach customer service about her parcels, which amounted to around S$300.

"I had placed four orders with this seller. For all orders I sent shipping status enquiries but did not get a single reply," she said.

When she checked the shipping status on the app, it showed an "error".

She said the "worst part" about the platform is that she can only submit a return or refund request by confirming the order and releasing the funds to the seller.

This is different from other e-commerce platforms, which hold onto the funds while a dispute is requested, she explained.

By submitting a return/ refund request, her delivery status now shows "completed".

However, she has yet to receive any of her parcels.

Mothership has reached out to Qoo10 and Qxpress for comments.

CNA reported that Qoo10 account managers handling vendors have quit or are leaving, which does not allow the outstanding issues to be resolved.

The management of the building, where Qoo10’s 18th-floor office is located, was apparently instructed to stop visitors from entering the premises, CNA reported.

Parliamentary reply on Qoo10

During the parliamentary session on Sep. 10, Member of Parliament Louis Chua asked about the payment delays faced by Qoo10.

Deputy Prime Minister and Minister for Trade and Industry said in a written reply that the government has received feedback from several Singapore-based merchants regarding payment delays from Qoo10.

"We have brought these cases to Qoo10’s attention and requested that they take prompt action to resolve the delays with the affected merchants," he wrote.

The government is also closely monitoring developments in South Korea regarding Qoo10’s subsidiaries and is in touch with Qoo10 to assess whether and how this may affect its operations in Singapore, he added.

Gan advised merchants facing payment delays to raise their concerns with Qoo10.

He added that there are established processes in place to assist merchants in resolving commercial disputes such as filing a civil claim with the courts.

Those who face cash flow difficulties because of payment delays can also contact any of the participating Financial Institutions listed on Enterprise Singapore’s website to apply for the Enterprise Financing Scheme (Working Capital Loan).

Qxpress separation from Qoo10

On Jul. 27, Qxpress, the logistic affiliate of Qoo10, announced that Ku had stepped down as Qxpress's CEO.

The company also reportedly distanced itself from the troubles at Qoo10, saying it operated independently of other companies under Qoo10, Maeil Business Newspaper reported.

Reports of Qxpress's separation from the Qoo10 group broke on Aug. 20, with private equity firms that have invested in Qxpress reportedly planning to convert their bonds to common stocks, according to The Korea Herald.

If all financial investors take action, their combined ownership could potentially exceed 50 per cent, diluting Ku's stake.

Top photos from Qoo10 Glassdoor