They are already affecting us by providing fake information, leads to many email/messages everytime when they sending invoice for something not released. I don't have such big CS team. I get panic, verify with supplier, then reply customers one by one, all unnecessary workload really piss me off
Also, there are a few oversea stores ran into financial issue too, not just the said store, they can't pay for their order or try to dropout their order which cause suppliers doubt all oversea stores reputation including hong kong stores. They increase the deposit rate to play safe
I asked a few suppliers - we cooperated for so many years, you can't trust on me? They both have similar answers - Well.. those guys who dropped out orders recently, they don't have problem in the past too, take it as new policy that apply on everyone
I got a call from my paypal account manager back in September last year, she said paypal is going to hold 25% our total funds for 60 days. It's risk management decision apply to all vendors who mainly deal with preorders (transaction with no tracking info). I don't know if the new paypal policy affect other vendors but it seems problems came out since then
People need eye catching tactics to attract customers, like no deposit/ switch deposit to other product. It may works and I know people appreciate that, but when things happen it could kill the business. I always try to stick to my rules, playing safe. People might think I am stubborn and stupid, but I am glad that we can keep the business healthy, survive from the pandemic hit. I don't need a lot stock clearance sales activity
Sorry I went too far, back to the topic, how does one big store closing affect us?
Some might think other stores could take over their business which is good
I see the butterfly effect when someone breaks the trust among the chain, we will be charged by higher and higher deposit. Paypal may increase the % of fund holding, customers will stop buying from HK stores, exactly like what those suppliers told me :- Can you tell me who will be next? How can I confirm you aren't the next?