After years of operating in Tmall, we still don't have a perfect solution for accounting in the world of Tmall.
Ideally you'd recognize the revenue once the product was delivered to the customer or when the transaction was verified as complete. Alibaba only releases escrow funds after a transaction is marked as complete, usually 2 weeks after successful delivery.
Sounds simple and reasonable for accounting, right?
In reality, your obligations as a seller are far from over at that point. People have the right to return the product even after the transaction is complete.
For an even longer period of time, they have the option to leave you a negative review which has far greater consequences for a merchant than what a few orders are worth.
And even after they can no longer leave a review, they still have creative ways and the will to hurt your store if you refuse to return.
Tricky business… from an accounting AND a customer service perspective.
Is this a flawed system or a genius way to ensure top notch customer service? Let me know what you think…