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Pinduoduo spends 100 billion yuan to make businesses eat meat

Pinduoduo spends 100 billion yuan to make businesses eat meat

News2025-04-08

Pinduoduo Director: It's a real investment of money and silver, not shouting slogans, only taking real actions.
1. Pinduoduo launches a billion dollar support plan
It has to be said that Pinduoduo is truly a big investment!
Recently, the Pinduoduo Merchant Rights Protection Committee announced a heavyweight news: the platform will officially launch the "Billion Support" program, which benefits businesses.

The specific content of this plan is: Pinduoduo plans to invest more than 100 billion yuan in funds, traffic and other resources in the next three years, increase the construction of high-quality e-commerce ecology, promote the transformation and upgrading of platform merchants, and fully build a win-win business ecology for users, merchants and platforms.

This news has caused excitement among merchants and shocked the industry. You should know that Pinduoduo's profit for 2024 is 112.4 billion yuan. Now, Pinduoduo is saying it wants to use billions of cash to support merchants, which is almost equivalent to Pinduoduo's profits in 2024.
Zhao Jiazhen, the executive director and co CEO of the group leading the 100 billion support plan, said that this "100 billion plan" is a real investment of money and silver, without shouting slogans, only taking real actions.
It seems that Pinduoduo's merchants are fortunate. It is reported that the 100 billion yuan support plan is a manifestation of Pinduoduo's long-term commitment to high-quality development strategy, and is also aimed at comprehensively supporting merchants and helping them to "expand orders and increase income".

In fact, Pinduoduo's courage to invest such a large amount of funds may stem from the effectiveness of the "billion yuan reduction and exemption" plan.

The billion yuan reduction plan is also a major merchant support measure launched by Pinduoduo, aimed at helping merchants reduce costs and increase efficiency through reducing transaction fees and other means, and promoting the sustainable development of the platform and industrial ecosystem.

The specific content is: Pinduoduo promises to reduce transaction fees by 10 billion yuan for merchants in the next year, and through real financial support and reduction, help merchants and industrial belts shift towards high-quality development.
Since its launch in August 2024, the billion yuan reduction plan has had a significant supportive effect on businesses. According to Pinduoduo, the billion yuan reduction plan has cumulatively improved the quality and efficiency of over 10 million merchants, and the "promotion service fee refund" alone has reduced the annual costs of merchants by billions.

From 10 billion to 100 billion, the investment in supporting merchants has increased tenfold, indicating Pinduoduo's emphasis on merchants.
Zhao Jiazhen, Executive Director and Co CEO of Pinduoduo Group, stated: We are committed to a high-quality development strategy, where the interests of consumers and merchants come before the interests of the platform. The platform is willing to sacrifice and tackle tough issues.
Not only the billion yuan reduction plan and billion yuan support plan, but also the e-commerce westward expansion and new quality merchant support plan, it can be seen that Pinduoduo has placed merchants in an increasingly high position and promoted their business growth through a series of favorable policies.

At a time when user growth is almost reaching its ceiling, e-commerce platforms are turning their attention to merchants and seeking new growth points by supporting them.

Pinduoduo's launch of the 100 billion yuan support plan not only helps businesses transform and upgrade, improve product quality and service capabilities, but also optimizes the platform's business environment, enhances market competitiveness, and achieves a win-win situation for the platform, merchants, and consumers.

2. Pinduoduo's firepower is fully unleashed, seeking breakthroughs
The 100 billion yuan support plan is just one unexpected move made by Pinduoduo this year. Since the beginning of this year, Pinduoduo has been taking continuous actions to promote the platform's development.

At the beginning of 2025, Pinduoduo's first major achievement was the establishment of the "Merchant Rights Protection Committee", which aims to integrate the strengths of multiple departments such as platform governance, investment attraction, customer service, technology, and products, comprehensively study merchant needs, collect merchant feedback, optimize merchant business experience, improve merchant service mechanisms, and continuously enhance merchant satisfaction.

The committee is led by Zhao Jiazhen, Executive Director and Co CEO of Pinduoduo Group, who serves as the committee director and coordinates the platform governance, investment attraction, customer service, technology, product and other teams.
The establishment of the Merchant Rights Committee has built a bridge for communication between the platform and merchants. Merchants who have difficulties or opinions can provide feedback to the platform, and the platform can also provide targeted assistance to merchants based on these feedbacks. By fostering positive interactions among users, merchants, and platforms, a mutually beneficial business ecosystem is formed.
Pinduoduo not only values communication between merchants and platforms, but also between merchants and users, and has launched a groundbreaking feature called two-way video call, which means users and merchants can have video calls.
Pinduoduo launched this feature in consideration of the pain point of merchants being complained about by a large number of users due to poor communication.

For example, when a user purchases certain devices on the platform that involve installation guidance. Users need timely and targeted guidance and suggestions from merchants when installing devices.

However, due to the lack of corresponding real-time video communication functions, merchants are unable to know the specific difficulties encountered by users during the installation process, and therefore cannot provide appropriate advice.

This can easily lead to communication problems between both parties, affecting the shopping experience of users and resulting in complaints against merchants.

However, now Pinduoduo has launched a two-way video communication feature for merchants, which allows for face-to-face communication with users and more efficient resolution of after-sales issues.

The launch of this feature has truly solved the problem for both merchants and users. It demonstrates Pinduoduo's genuine consideration for the rights and interests of merchants and users, and takes practical actions.

The considerate Pinduoduo does more than that for merchants. Some time ago, Pinduoduo also actively recruited merchants who have carried out live broadcast business in Tiktok to settle in its Duoduo live broadcast platform to realize live broadcast on two platforms.

This means that businesses can simultaneously launch broadcasts on Tiktok and Pinyin platforms, targeting users of the two e-commerce platforms, but only one live broadcast team is needed, which greatly reduces the manpower and operating costs of businesses.

In order to attract more Tiktok merchants to settle in Pinduoduo, Pinduoduo also provides a series of benefits to these dual live broadcast merchants:
During the live broadcast, unnecessary pop-up interference can be exempted; Merchants who use the intelligent central control system provided by the platform can automatically list the same product on Xiaohongbox and switch explanations synchronously; Provides Blu ray image quality options, which can make the live broadcast of merchants clearer and more detailed.

Pinduoduo has always lagged behind other platforms in live streaming e-commerce. Now, once the permission of dual platform live broadcast is released, more experienced Tiktok live broadcast businesses may be attracted to settle in, bringing new growth to Pinduoduo live broadcast e-commerce.

It is not difficult to see that Pinduoduo has now tilted more resources towards the development of merchants. Whether it is establishing committees for merchants, opening up platform functions to benefit merchants, or providing real financial support, the welfare benefits for merchants are getting better and the business environment is also improving.

Previously, the platform focused more on user growth, but now it has also realized the importance of merchants. As more and more high-quality merchants join the platform, it can enrich the platform's product categories and meet the diverse needs of consumers.

With the support of the platform, when merchants strive for high-quality development, it can improve user satisfaction with the merchants and drive their revenue growth. Ultimately, the platform will also benefit.

3. Pinduoduo still has a long way to go
Nowadays, Pinduoduo has surpassed JD.com and ranks below Taobao, with an astonishing development speed. However, there are also many competitors who are relentlessly chasing after it, so Pinduoduo still needs to move forward cautiously.

Throughout its history, Pinduoduo has accumulated a huge user base through a low price strategy of billions of subsidies and a customer acquisition channel of social fission. But in the fiercely competitive environment, this alone is not enough.

In 2024, Tiktok E-commerce will become the third largest in the industry with a GMV of about 3.5 trillion yuan. With rapid development, Pinduoduo, the second largest in the industry, has to be warned.

Tiktok E-commerce has performed particularly well in the live broadcast E-commerce business, relying on the traffic of short videos and the support of many Internet celebrities to boost the rapid growth of Tiktok E-commerce.

Taotian, which ranks first, has also seen good development in live streaming e-commerce. Recently, it was announced that an additional 11 billion yuan will be invested in high-quality live streaming, which may usher in a new round of explosive growth.

Compared with Taotian and Tiktok e-commerce, Pinduoduo does not have an advantage in live broadcast e-commerce. The pincer attack from front to back forced Pinduoduo to make changes.
If Pinduoduo wants to go further, while leveraging its strengths, it should also pay attention to its weaknesses. Although it is not possible to achieve a breakthrough at once, a corresponding strategic layout is still needed.

Pinduoduo may have its own pace of development, and I believe it can also keep up with the times and make changes, continuously improve its comprehensive strength, in order to occupy a more advantageous position in the competitive market.

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Pinduoduo spends 100 billion yuan to make businesses eat meat