Management Rules for Commodity Quality Index of JD.HK Open Platform

Chapter I    Overview

The "Commodity Quality Index" of JD.HK Open Platform is a model reflecting value proposition and product quality of JD.HK Open Platform. In order to improve consumers' shopping experience, help merchants understand the pain points of consumers' demand for commodity quality, and improve the commodity quality competitiveness of JD.HK Platform, JD.HK Platform builds a commodity quality index model based on the big data information of commodity quality fed back by consumers, combined with quality sampling inspection information, quality certification and other information, which helps merchants to timely understand the quality level of the industry in which store commodities are located. The Rules are hereby formulated.

Chapter II   Definitions

2.1 Definition of Commodity Quality Index

Commodity Quality Index refers to the big data model constructed by synthesizing the quality feedback data of commodities in multiple dimensions such as consumer comments, return and repair and customer complaints, combined with government sampling inspection, JD.HK internal sampling inspection, certification and testing and other information, which gives quality scores and rankings for JD.HK platform commodities and is used to determine the comprehensive performance of commodity quality. Commodities will be classified into five levels according to the Commodity Quality Index: AA, A, B, C, and D.

2.2 Scope of application

The Rules is applicable for the physical commodities operated in the JD.HK Open Platform except for those under the service and virtual classes.

2.3 Grade standard

Grade AA means that the quality performance of commodities is in the head of the industry;

Grade A means that the quality performance of commodities is higher than the average value of the industry of the quality index of similar commodities for sale on the JD.HK Open Platform;

Grade B means that the quality performance of commodities is equal to the average value of the industry of the quality index of similar commodities for sale on the JD.HK Open Platform;

Grade C means that the quality performance of commodities is lower than the average value of the industry of the quality index of similar commodities for sale on the JD.HK Open Platform and the platform will carry out sampling inspection on commodities or restrict commodities from participating in marketing activities and other management and control according to specific circumstances;

Grade D means that the quality performance of commodities is in the end of the average value of the industry of the quality index of similar commodities for sale on the JD.HK Open Platform and the platform will carry out sampling inspection on commodities or restrict commodities from participating in marketing activities or the commodities cannot be identified as Assured Shopping.

Chapter III Composition of Commodity Quality Index

3.1 Index composition

Commodity Quality Index is composed of basic index factors, extra point items and deduction items.

Basic index factors include consumer quality feedback rate, commodity compliance and commodity praise and the scores will be calculated in accordance with their integration.

Extra point items mean that the Commodity Quality Index will be increased to a certain extent if the merchant uploads the commodity certification certificate or test report recognized by JD.HK Quality Selection Project and passes the platform review. JD.HK accepts high-level voluntary certification qualification.

Deduction items means that the quality score of corresponding commodities will be reduced if the quality of commodities is unqualified in JD.HK internal sampling inspection, or the regulatory authority publishes the quality is unqualified and the platform investigation shows it is unqualified, or consumers complain to the regulatory authority due to commodity quality problem. The compositions of specific indicators are as follows:

Table 1  Construction of composition of Commodity Quality Index

Note: Rankings are calculated by secondary categories in the major operation.

3.2 Detailed annotation of index

3.2.1     Consumer quality feedback rate refers to the proportion of orders with commodity quality problems in the order line ^① delivered or completed in the past 30 days, and the data sources include: customer complaints, comments, after-sales return and repair, and after-sales consultation.

Note ①: Order line refers to the number of people who purchase the goods.

3.2.2     Commodity compliance refers to the score made by consumers on the compliance of commodities after receiving commodities in combination with the description in the detailed page within the evaluation cycle of Commodity Quality Index.

Fig. 1     Commodity Compliance

3.2.3     Commodity praise refers to the degree of praise made by consumers for the commodity within the evaluation cycle of Commodity Quality Index.

3.2.4     High-quality certification refers to the voluntary certification certificate issued by the internationally recognized institutions for the commodity;

3.2.5     High-quality inspection means that the commodity meets the quality standard for excellent commodity in the "Quality Selection" of JD.HK, such as Standard for Reading and Writing Lamp Products on the JD.HK.

3.2.6     Unqualified government sampling inspection means that the supervision department publishes the quality of the commodity is unqualified and the platform investigation shows it is unqualified.

3.2.7     Unqualified JD.HK internal sampling inspection means that the commodities are identified as unqualified by JD.HK internal sampling inspection.

3.2.8     Regulatory complaints due to commodity quality means that the regulatory authority feeds back that some consumers complain that the commodity have quality problems.

3.3 Query path

Merchant backstage- physical examination center - shop quality: http://qc.shop.jd.com/shopquality

Chapter IV The Important Application of Commodity Quality Index

4.1 The threshold for general marketing activities

Commodity quality index is one of the basic qualification thresholds for submit commodities to participate in "general marketing activities" in the marketing activity system, and commodities with grade D of commodity quality index will not be able to apply for participating in general marketing activities. Meanwhile, each activity and channel may set higher qualification threshold according to its characteristics. If the product does not meet the qualification requirements, it will be restricted to participate in the activity.

4.2 Threshold of the logo of Assured Shopping

The commodity quality index has been used as the necessary threshold index for the logo of Assured Shopping. If the quality index rating of the commodity is below the average of the same industry (the commodity quality index rating is C and D), the logo of Assured Shopping cannot be displayed on JD.HK.

4.3 The important basis of internal sampling inspection of JD.HK

The commodity quality index has been used as the important basis of internal sampling inspection of JD.HK. If the quality index rating of the commodity is below the threshold line of the same industry, the platform will conduct quality inspection on relevant commodities. If the inspection fails, the platform will control the merchants in accordance with the situation of "unqualified product quality" in the Rules for Management of Merchants' Violations of Credits on JD.HK  Open Platform.

4.4 Basis for management of high-risk commodities

4.4.1 Early warning of quality risk

Commodities with early warning of quality risk refer to those commodities with high frequency of being judged as Grade D in commodity quality index

and poor quality experience of consumers in a natural month monitoring period. Merchants need to focus on it, and develop corrective measures for issues reflected by the consumers to reduce the chance of products being "downgraded" or "blocked".

4.4.2 Control of high-risk commodity

High-risk commodities refer to the early warned commodities whose quality condition has not been improved in a natural month monitoring period, with high frequency of continuously ranking Grade D in commodity quality index and poor quality experience of consumers for a long time. Such products will be "downgraded" or "blocked" at the end of the monitoring period.

The platform will configure different control standards and take different specific control measures according to different commodity categories. For example, in a natural month, according to the number of times that the quality index of a certain commodity is judged to be Grade D, different control measures such as early warning, 50% downgrade for 7 days and blocking for 7 days are taken, as detailed in Table 2 below:

Table 2  Examples of control measures for high-risk commodity

Control measures for high-risk goods in stores will be made according to the comprehensive performance results of commodity quality index model based on the big data of JD.HK.

Chapter V   Supplementary Provisions

5.1  Any conduct of the merchant of JD.HK Open Platform, which happened before the effective date of the Management Rules, shall be subject to the rules effective at that time. Any such conduct arising after the effective date of the Management Rules, the Rules shall govern.

5.2 JD.HK may adjust the Management Rules at any time according to the platform operation and disclose such adjustment to the merchants in the form of announcement on JD.HK Open Platform.

5.3  The merchant shall comply with national laws, administrative regulations, rules of authorities and other normative documents. The Rules shall be applicable to any alleged breach of national laws, administrative regulations, rules of authorities and normative documents, if such breach is stipulated therein. For situation without provision in the Rules, JD.HK has the right to deal with it at its discretion, but its treatment of merchants does not exempt them from the legal liability they should bear. Any conduct of the merchants on JD.HK shall also be subject to the agreements signed with JD.HK and its affiliates;

5.4 The Rules were released on May 12, 2020 and took effect on May 12, 2020.

Welcome every merchant to provide us with suggestions on platform rules, you can send an email to jdw-qingting@jd.com. Thank you for your support and attention to JD.HK Open Platform.

FAQ

Q: How often is the quality index ranking updated?

A: Update daily with an effective time of T+1, that is, the quality index result of yesterday is displayed on the current day, with the value calculated according to the data period of each index.

Q: Is there any way to improve the quality index ranking of the products in the store?

A: You can check the consumption feedback, operation index and standard specification in [Commodity Quality Index Analysis] to obtain commodity quality information. It's suggested that you pay attention to the quality of the goods in the store and improve the store, such as optimizing the selection logic of the store, paying attention to the quality of the goods, taking effective measures to improve the quality of the goods; empathizing the quality complaints that consumers may have, and controlling the quality expectations of consumers well; improving the details of the product introduction and prompt information, and doing well in pre-sale inquiry, reminder and other sales guidance services, in order to meet consumers' expectations on the quality of the goods.

Q: What's the quality index of the new product? Will the submission activity be restricted?

A: Goods without valid orders in recent 30 days (such as new products with no sales volume) and without commodity quality index rating will not be affected by the quality of the goods for the marketing activities.

Q: Why are products with high applause rate still given a D rating?

A: The high applause rate is only one of the factors of the commodity quality index. The commodity quality index calculates the data of the last 30 days and excludes the false orders. The historical data are not included.

Q: Is it that the more sales, the worse the complaints, and the lower the goods quality score?

A: The commodity quality index model takes into account the order and sales volume of the goods, and it's more based on the proportion of quality problems reported by consumers as well as the industry situation. There are goods with good quality and relatively poor quality in each sales level.

Q: Where can I find commodities with a poor quality index rating?

A: The physical examination center has been online. You can check the quality index of shops and commodities.

Data query path on the current version of POP merchant end: merchant backstage - physical examination center - shop quality, link address:http://qc.shop.jd.com/shopquality