Can you fine tune and make it concise without losing important information and big pictureCCR increased in Q2 157ppm +64 YoY +303 QoQ due to 1 increase in detection from Online Return Centre ORC ~20pp

In Q2, CCR increased by 157ppm, representing a 64% YoY increase and a 303% QoQ increase. This was primarily due to two factors: an increase in detection from the Online Return Centre (ORC) and an issue with misbranded ASINs.

The increase in ORC detection, accounting for around 20ppm, was a result of improved coverage of Customer return reason codes to enhance PCR detection.

The misbranded ASINs issue, contributing around 44ppm, was driven by customer demand for popular cosmetic brands such as Beauty of Joseon and Thrive Causemetics.

To address these issues, we have taken immediate action in collaboration with TSE AGS. We are reviewing ORC metrics to remove the impact of additional defects attributed to increased coverage by 15.3% to ensure accurate reporting.

To close the misbranded ASIN loophole, we have implemented several measures. These include setting up a mechanism to proactively clean the catalog based on the top 3 misbranded brands per week using product images. We will also continue efforts to submit misbranded ASINs to ABP for suppression and enroll new text/logo protections for brands. Additionally, we are collaborating with the CN Legal Counterfeit Crimes Unit (CCU) to take offline enforcements on bad actors.

Moving forward, we will partner with TSE AGS and WW PQ to streamline requests to ABP regarding misbranded ASINs, prioritizing CN2Est. NSR top brands generating defects. We will also leverage Brand Protection Strategic Partnerships (BPSP) to establish connections with CN brand representatives from top affected brands.

These actions are ongoing and have been implemented from specific weeks, as mentioned in brackets