China's revised consumer rights law, which includes a seven-day cooling-off period during which shoppers can get a refund for online purchases, may push some small e-retailers out of business, said industry insiders.

The revised law, which takes effect on Saturday, is expected to raise standards in the booming e-commerce sector. But giving customers the right to return purchases will mean higher costs for service and logistics, an extra burden for small online retailers.

"The revised law is going to have a positive influence on the entire e-commerce sector in the long run, because it requires online retailers to offer the same high-quality services as those provided by brick-and-mortar stores," said Lu Zhenwang, an independent e-commerce expert and chief executive officer of Shanghai-based Wanqing Consultancy.