An Analysis of Internal Control of the E-commerce Industry—Based on Jingdong Honesty Crisis

Abstract

On March 13, 2018, an article called "six-six: rogue JingDong" pushed JingDong into the media, revealing the purchase of fake goods and denial from customer service in the JD Worldwide. On March 21, JingDong again locked in a click farming case, and On April 2, JingDong was questioned by the 5 departments because of violation of the relevant laws and regulations. Therefore, JingDong, China's largest self-support e-commerce company, were troubled into a honesty crisis. Although the e-commerce industry developed rapidly, there are flaws on the internal control, which deserves further study. This paper, based on the honesty crisis in JingDong, analyzes the problems and causes of internal control, then puts forward some reasonable improvement countermeasures, which has certain significance for the development of e-commerce enterprises.