Rakuten postpones free shipping plan after backlash from retailers

Mar 08, 2020 | News On Japan

Mar 08, 2020 (Japan Today) - Online marketplace operator Rakuten Inc said Friday it has decided to effectively postpone its plan to offer free shipping from March 18 following a backlash from retailers who are to shoulder the cost of the new service.

The e-commerce giant said its plan to ship all orders exceeding 3,980 yen free of charge will begin only with retailers who are willing to shoulder the shipping cost as initially planned.

Rakuten also said it plans to provide financial support for retailers offering free shipping if they see their sales or profits decline.

The decision comes after the Japan Fair Trade Commission last month submitted a request to the Tokyo District Court for Rakuten to halt the plan following an investigation into whether the company was violating the antimonopoly law.

Some retailers objected to Rakuten's new policy, and others willing to introduce free shipping asked the company to delay the service's launch due to a shortage of staff amid the spread of a new coronavirus originating in China.

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