(Yicai Global) Oct. 9 -- Alibaba Group Holding Ltd's [NYSE:BABA] e-commerce platform Tmall has intensified its rivalry with industry peer JD.com Inc. [NASDAQ:JD] with a new policy aimed at compensating its customers if they find their purchased products sold at a cheaper price on JD.com, Beijing Business Today reported on Oct. 9.
If a product of the same brand, model, color or storage capacity was sold on Tmall at a higher price than JD.com on the same purchase date, consumers can apply for compensation based on the price difference.
Tmall clearly stipulates that the products must be sold by JD.com itself rather than third-party sellers on the platform.
It is likely that the policy will be highly-publicized through large-scale promotional activities prior to China's Nov. 11 annual shopping festival, also known as Singles' Day.
JD.com's self-operated platform for selling products, for which the new policy is applicable, has seen significant success and has a reputation among consumers for high-quality service and faster delivery speed.
Although Tmall is confident in its pricing, it has also indicated shortages in quality and brands, said Jiang Qiping, secretary general of the Center of Informatization Studies at the Chinese Academy of Social Sciences. While Tmall enjoys a price advantage, JD.com will highlight its high quality products and services, he added.