Taobao has recently launched a regional bidding feature for its Billion Dollar Subsidy program, allowing merchants to bid to be a favored seller in certain regions, according to Chinese media outlet LatePost. The top three merchants in each region will receive priority order allocation, while orders will only be assigned to merchants ranked outside of the top three once the preferred partners have sold out. Tmall merchants participating in the event can also receive a 100% commission rebate on transactions. Sources familiar with the platform say the adjustment aims to address concerns that subsidized products are not priced low enough. At present, some sellers are willing to offer lower prices but are restricted by brand distribution rules, fearing penalties for cross-regional sales. The platform encourages merchants to bid within their regions. Pinduoduo began implementing a similar regional bidding model around 2023; rival e-commerce platforms, including Taobao and JD.com, have recently adopted a number of Pinduoduo-pioneered strategies in areas such as merchant recruitment, inventory management, and risk control. [LatePost, in Chinese]
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