When scrolling through short videos on platforms like Douyin or Kuaishou, users often encounter ads from second-hand electronics platforms such as Zhuanzhuan and ATRenew. While their massive ad campaigns have indeed attracted business, ATRenew has recently faced widespread criticism for its alleged "price-cutting" practices.
On social media, complaints about inflated online valuations followed by aggressive offline price reductions are rampant. A random visit by our team to an ATRenew offline store confirmed these claims. Multiple customers selling their phones were told their devices had issues like "internal screen damage" or "scratches," resulting in final offers significantly lower than initial online estimates. For example, one consumer’s phone was initially valued at ¥5,060 online but was later downgraded to around ¥4,500 due to alleged scratches. Another user reported their phone’s online quote of ¥2,560 plummeting to ¥1,300 offline—a nearly 50% drop.
"These scratches are barely visible!" frustrated customers protested, only to receive dismissive responses like, "Your standards and ours are different."
Notably, ATRenew’s founder, Chen Xuefeng, launched a personal video channel in May this year to boost the company’s image. However, his comment section has since turned into a hub for grievances. Complaints range from sellers criticizing the platform’s unprofessionalism and lowballing to buyers receiving defective devices. Some even accuse management of imposing frequent, unexplained fines on employees. In one extreme case, a customer claimed they were charged ¥160,000 for a ¥16,000 phone, sharing payment screenshots as proof. Chen responded, "We sincerely apologize and will investigate internally."
**Online High Quotes, Offline Lowballing?** Consumers report that ATRenew’s offline inspectors nitpick over minor or invisible flaws to justify price cuts. One seller recounted being told their well-maintained phone had "scratches" and "black spots" they couldn’t see, ultimately being pressured into accepting a ¥580 deduction or forfeiting subsidies.
Similar cases abound: a tiny white dot led to a ¥700 reduction; another phone’s post-inspection offer dropped from ¥2,160 to ¥1,248. In one instance, an iPhone 13 Pro Max’s online quote of ¥2,560 was slashed to ¥1,300 after an hour-long inspection.
Our investigation found that ATRenew’s online valuation system asks for minimal input, while offline checks introduce opaque criteria—like internal diagnostics—creating an information asymmetry that disadvantages sellers.
**Trust Erosion and Founder’s Controversial Moves** Despite once leading the second-hand market, ATRenew now struggles with competition and user trust. Black Cat Complaints platform hosts over 20,000 grievances against ATRenew, mostly about lowballing, delayed service, and subpar product quality.
Financially, ATRenew’s parent company, Wanwu Xinsheng, reported Q2 2025 revenue of ¥4.99 billion, up 32.2% YoY, with Q3 projections of ¥5.05–5.15 billion. However, the company burned through over ¥4 billion in losses over seven years, including a ¥2.468 billion deficit in 2022. Even as losses narrowed to ¥8 million last year, founder Chen Xuefeng cashed out nearly $30 million pre-IPO by selling shares.
**Policy Boost vs. Sustainability Concerns** Industry analyst Zhang Shule notes that ATRenew’s recent profitability aligns with government subsidies like trade-in programs and digital upgrade initiatives. However, if these policies phase out, consumer interest—and ATRenew’s margins—could decline sharply.
For now, ATRenew’s biggest challenge remains restoring user confidence amid growing discontent over its pricing tactics.