E-commerce services such as trading platform services, logistics distribution and electronic payment have been intensively developed to support and facilitate the development of cross-border e-commerce. Companies with overseas licenses (including Hong Kong, Macau and Taiwan) are eligible for Tmall Global, a marketplace designated for cross-border e-commerce. © Copyright 2019 Dragon Social Ltd. – All Right Reserved. China Cross-border E-commerce Platform Comparison. Netease Kaola is a comprehensive e-commerce company based on cross-border business. Read shopping guides/product reviews from other users, Publish product reviews about the product, Communicate with other users about their shopping experience. It is still necessary to learn about how to choose a suitable China cross-border e-commerce platform for your business, as well as understanding local laws and regulations, product and marketing issues, payment conditions and logistics limitations to make wise decisions. before you can start selling on Taobao.com, require that sellers meet the following requirements, there is no built in ecommerce platform inside WeChat, US$10,000 in a yearly product category fee. It may, however, only be a matter of time before Wechat becomes a marketplace on par with Tmall or JD. It applies a direct import consignment model by allowing brands to place a small batch of products at the nearest Tmall Global fulfillment center for sale on the platform. WeChat is not even a proper eCommerce platform, but it’s about to become one. It has developed an extensive logistics network of 7 global fulfillment centers, 10 transportation hubs and 9 import clearance centers across 29 countries. Since then, XiaoHongShu has formed strategic partnerships with many overseas brands including Lancôme, Swisse, and Innisfree (Brands can open a brand account/digital store on XiaoHongShu). Compared to Tmall which focuses more on high-end, well-established brands with difficult entry requirements, Kaola is more “Brand-Friendly” as it welcomes more ordinary brands. Foreign brands can expect that they are mainly selling to relatively young, high-end consumers. Given the large number of online shoppers, the trend of China cross-border e-commerce transactions is also worth noticing. The amount will be sent to the payment companies’ overseas accounts. With more than 24% of market share, it is now China’s largest cross-border e-commerce platform. Highlights about CBEC in China. Aligned with the mobile penetration rate, over 592 million people shop via mobile devices – indicating the importance of a mobile-friendly e-commerce platform for brands. Still, operation details such as laws and regulations, payment and logistics issues may be confusing for new players. Kaola.com is, unlike the other platforms listed in this article, the only eCommerce platform that is specifically focused on cross border eCommerce. Starting from April 1st, 2019, cross-border e-commerce platforms need to integrate with local customs to push 3 pieces of order information (payment, order, and shipping information) Daigous and companies are strictly prohibited from reselling products that were imported via … Looking to sell cross border into Mainland China from Hong Kong or overseas? Related. During the first six months of the year, China's trade volume via cross-border e-commerce platforms overseen by Customs authorities increased by 26 percent on a yearly basis, with exports rising by nearly 29 percent, data from the General Administration of Customs showed. In another incident, the platform was accused of hosting huge amounts of fake content. Kaola, was launched in 2015 by Nasdaq-listed NetEase, and is another of the larger China cross-border e-commerce platforms. This is still ‘work in progress’, but truly revolutionary, as Tmall.hk brings down the costs significantly for small businesses looking to test the Chinese market. Q4: Are there any rules and regulations related to China cross-border e-commerce? Global “Cross-Border E-commerce Platform Market 2020-2025” Research Report categorizes the global Cross-Border E-commerce Platform by key players, product type, applications and regions,etc. Tmall Global has planned everything: the payments are received by the company in their own currencies which make it much easier. China cross-border ecommerce retail imports market. In a previous post, we’ve briefly talked about cross-border eCommerce in China in terms of its history and its current scale. Also, the policy of return & exchange of products can be more easily implemented through the bonded warehouse model. By 2020, China is set to become the largest cross-border B2C market in the world. The difference between levying Personal Postal Articles Tax and integrated tax for CBEC is that integrated tax for CBEC is based on the unit buying price of the goods while Personal Postal Articles Tax is based on their dutiable value. Required fields are marked *. With more business support and lenient regulations, overseas merchants should grab the chance to explore the prosperous China consumer market. As of March 2020, the leading cross-border e-commerce platform Xiaohongshu had around 12.3 million monthly active users in China, a decrease from 18.6 million in the same period in 2019. China Cross-border e-commerce platforms have been expanding rapidly and have gradually been replacing the traditional models such as haitao or daigou (people buying a product tax-free overseas and then re-selling it in the local market). VIP.com is the largest online discount store in China, which sets it apart from other platforms. Besides, most of the online shoppers are highly educated with over 61% own a degree or above. During the first six months of the year, China's trade volume via cross-border e-commerce platforms overseen by Customs authorities increased by 26 percent on a yearly basis, with exports rising by nearly 29 percent, data from the General Administration of Customs showed. At the beginning the platform was open only to Australian retailers, so they could sell their products in China. During the Tmall Global merchant summit 2018, Alibaba pledged to bring international goods worth US$200 billion in China over the next five years, which underscores the giant’s ambitions to further globalize and narrow the gap between China’s consumers and international brands. The development of China’s e-commerce has captured the world’s attention with many foreign brands and retailers selling their products via cross-border e-commerce platforms. Payment settlement details of WeChat Pay and Alipay. What are the risks for cross border ecommerce. Both JD and Tmall.hk want quality products. The maximum value of personal imports is RMB 800 if posted through Hong Kong, Macao and Taiwan and RMB 1,000 if posted from other countries. Chapter 4, the Cross-Border E-commerce Platform breakdown data are shown at the regional level, to show the sales, revenue and growth by regions, from 2015 to 2020. Since its launch in 2014, Tmall Global has evolved to become the top-of-mind platform for Chinese consumers to purchase imported products. Another option would be direct shipping from overseas to China, this is a cost-effective method for merchants who would like to test the market with a small number of products. Posted on September 18, 2019 September 18, 2019 by Advangent. These retail imports would be eligible for the preferential policies set out by the government. JD.com also requires that you have a registered trademark. With rapid economic growth and higher disposable income, people in China are demanding high-quality products and a broader selection of goods and services. I think they will become a very serious competitor to Tmall Global and JD. They also said that they plan an annual growth of 30 percent in the next few years with more than 58 million consumers buying via cross-border e-commerce. Operation Pattern: Vertical Platform, B2C, Proprietary Trading, Sub-Platform The only thing that speaks against this is the fact that Tencent is also a major investor in JD.com. Currently working with Dragon Social's content marketing team. cross-border e-commerce in international trade, including business-to-business and business-to-consumer e-commerce, is increasing rapidly, and data are becoming a new driver of trade growth and economic development. In total, they have reached a penetration rate of 93.3%. Within these limits, orders are eligible for a 0% tariff, 70% of the import value-added tax (VAT) and 70% of the consumption tax (also known as integrated tax for CBEC). Tmall Global may not be an entirely independent eCommerce platform. Some platforms like Tmall Global are difficult to enter as they mainly invite well-established, high-end brands. However, the goods sold on Tmall.com must be delivered from within China, which excludes cross border sellers. Currently, Chinese cross-border e-commerce is growing at an estimated annual rate of 20-30%. The reduction of tax greatly encourages China cross-border e-commerce transactions, as it benefits both goods purchased via local CBEC websites or other overseas e-commerce sites. JD.com is Alibaba’s archenemy and the number 2 eCommerce platform in China. We’ll explain you here how to do and what is the best strategy to implement to succeed in your business. The formula of the integrated tax for CBEC: [(Consumption Tax rate + VAT rate) / (1 – Consumption Tax rate)] x 70%, Example of CBEC integrated tax calculation. On top of that, Kaola has also gotten in on the trend of social e-commerce by having an online community called  “种草社区” (Zhǒng cǎo shèqū). International companies are allowed to sell certain goods to Chinese consumers online, through platforms such as Alibaba’s Tmall Global and Kaola, at preferential duty rates and without a license to operate a business in China. In 2019, Kaola has been vigorously expanding into the field of Women’s Fashion, Men’s Fashion and Sports & Outdoors products. Demographic distribution of China Cross-Border E-commerce customers. An increasing amount of people are shopping online across borders, especially in China. Tmall (Chinese:天猫), introduced by Alibaba, is a website for business-to-consumer (B2C)/ wholesale (B2B2C) online retail in China. Canada Ecommerce 2020. And yes, it’s also owned by Alibaba Group. Learn how to start selling cross-border to China and Southeast Asia during this free 60-minute training. Kaola would purchase products in bulk from merchants directly and help with brand marketing, packaging and operation (unified customer service and after-sales service on the platform). The number has been increasing year on year as T-Mall Global invites more and more brands onto the platform. Acting as a self-supplier works a lot like being a wholesaler for XiaoHongShu, in that the platform would pre-purchase products from you and sell them through their own e-commerce store. In 2017, cross-border e-commerce consumers accounted for 10.2 percent of China's total e-commerce consumers, up from 1.6 percent in 2014, according to a research report on China's import market jointly released by China Chamber of International Commerce, global auditing and consultancy firm Deloitte, and Alibaba's Aliresearch. This shipping model is beneficial as tax is paid only after the commodity is sold. Report. The first and foremost question that you must consider is – Is it legal to ship and sell your products in China via cross-border e-commerce? China Ecommerce 2019. Also, many of China’s e-commerce giants provide various modes of warehouse and logistics support for overseas partners. If you’re interested in selling your products in China and are looking for some help, shoot us an email and we’d be happy to discuss with you! So how does Kaola stand out from other big competitors like JD and Tmall? That’s also what Tmall.com eventually became. From another perspective, it means that around 73.6% of China’s online population shop online! Goods exceeding the maximum value must be returned to the consignor or clear customs according to existing regulations. In addition, brands and suppliers can participate in Tmall Global’s new Centralized Import Procurement program (CIP), which leverages six warehouses around the globe to source goods for all of the online and offline outlets within the Alibaba ecosystem, including technology-driven grocery chain Freshippo (also known as “Hema” in Chinese) and Tmall Supermarket. E-commerce is playing an increasingly significant role in cross-border trade in goods and services. Chinese E-commerce Platform: How to Spy on Your Sales, or Competitor’s Sales? This approach allows brands to fine-tune their product selection for the market without the need for a physical retail presence in China or significant investment in developing a logistics network. While for TOF and TDI models, sales and marketing are managed by Tmall’s TOF category team and TDI operations team. To apply for a WeChat Pay/ Alipay cross-border payment account, merchants should possess: For details about how to open an account on Alipay Global, please check here, for WeChat Pay Global, please check here. This paper establishes the evaluation criterion system of Cross-border E-commerce platform selection based on DeLone & McLean's e-commerce success model and MA … The incident reveals the difficulty of monitoring a large volume of content for a social platform. How to Sell in China: Top 3 China Cross-border E-commerce Platforms, The Top 3 China Cross-border Ecommerce Platforms, Adjusting the List of CBEC Retail Imports and the List of CBEC Retail Imports (2018 Version), Circular on the Improvement of Tax Policies on Cross-Border E-Commerce Retail Imports, cut-off amount for tax-free cross-border purchases, Announcement on Policies for Deepening VAT Reform. While Kaola also accepts factory suppliers that sell fast-moving consumer goods (FMCG). VIP is currently the third largest eCommerce platform in China right after JD.com and TMall.com. Q1: What products can be shipped to China? Until Tmall Global, you could easily have added another zero to these figures. In fact, it’s the Chinese language version of Alibaba.com. Kaola is so confident in its model that it offers anyone who receives a counterfeit 10 times the value of their reimbursement. According to the sales value on Tmall Global, cosmetics saw the highest growth in 2016 while home appliances rose fastest in 2018. In 2019 Q1, Kaola (27.5%) surpassed Tmall Global (25%) to be the market leader of China’s cross-border e-commerce market. MAU number of major cross-border e-commerce platforms in China 2020, by platform. China’s cross-border e-commerce industry currently has three key characteristics. In the last few years a great number of Platforms sprang up, such as Jumei Global Store, Daling, Amazon Global, B&G, Kaola.com, Suning Global, JD Worldwide and VIP International. They are, however, open to third-party sellers from both within China, and cross border sellers via their JD Worldwide program. Unlike TOF which places unsold products in overseas warehouses, the selected products will be shipped in bulk directly to bonded warehouses in China. Tax rate was reduced from 15% to 13% on imported food and medicines. Products would be stored in overseas warehouses, and shipped directly to China after an order is placed. Tmall, which started out as ‘Taobao Mall’ was launched by Alibaba.com as the more ‘premium’ focused cousin of Taobao.com. Apart from selling through mainland CBEC platforms, businesses may also choose to sell goods on overseas websites for mainland consumers shopping online. JD.com launched as a more traditional online store, rather than an open B2C platform. For unsupported currencies, transactions would be made in US dollars. Participating brands can manage their own flagship store on Tmall Global through the help of a Tmall Partner (3rd partner professional service company approved by Tmall). E-commerce is playing an increasingly significant role in cross-border trade in goods and services. Imported goods can be temporarily stored in the domestic bonded warehouses, and be delivered to customers after customs clearance once an order is placed. For example, brands can open a 3rd party flagship store, or simply supply products to the platform without setting up a brand name store. Rumors are circulating that global ecommerce behemoth Amazon may merge its China business with NetEase Kaola, China’s second-largest cross-border e-commerce platform. Businesses looking to enter the Chinese market can take advantage of China’s cross-border e-commerce (CBEC) pilot, which has been expanded twice in 2020 alone, with promises of broadening even further into more regions and cities across China. Among the three business models, the TMG provides more autonomy as brands can co-manage their sales and marketing efforts on Tmall with their Tmall Partners. UK Holiday Season Shopping 2019. This illustrates that Internet and Mobile technology has become an indispensable facet of Chinese people’s everyday life, providing a fertile breeding ground for e-commerce business. The most notable ones would be Alipay (Alibaba) and WeChat Pay (Tencent). Cross-Border e-commerce refers to the transaction subject of different customs, through the e-commerce platform to achieve transactions, payment and settlement, and cross-border logistics service goods, the completion of an international business transactions. Hello,I read your blog on a regular basis.Your writing style is awesome, keep it up! If you are still only thinking about Tmall & JD when it comes to China cross-border e-commerce platforms, then you definitely need to catch up. Around 47% of them receive a high salary with over 10,000 yuan monthly income. As of 2018,  China’s cross-border e-commerce market reached 8.8 trillion yuan in total transaction value, over 20% of which are import e-commerce sales! For retailers or brands who would like to expand their business through China cross-border e-commerce there are two major shipping models that they can consider, the bonded warehouse and direct shipping. Consumption drives imports Chinese consumers have been cultivating the habit of buying imported goods through cross-border e-commerce platforms. JD.com launched as a more traditional online store, rather than an open B2C platform. Share: AgencyChina. 4. Personally, I find Kaola.com to be one of the most interesting platforms for our customers here at Export2Asia.com. You can find the list here. There are mainly three modes for entry, namely “POP Merchant”, “Proprietary Supplier” and “Factory Shop” cooperation process. Now let’s go over the different type of stores: more than 150,000 square meters of bonded warehouses, Alibaba acquires NetEase Kaola in a deal worth $2 billion, The Best Guide To XiaoHongShu Marketing: How To Sell to Gen-Z & Millenials. Talking about which type of products are on top of the list of China online consumers, “Cosmetics & Personal Care”, “Health Supplements & Food” and “Maternal Child” are the three main categories for imported goods. Currently, there are more than a dozen different Cross-Border e-commerce platforms in China covering every product category. Spotlight: Asian businesses eye deeper penetration into Chinese market through China-ASEAN Expo, cross-border e-commerce Ma Qian,Wang Jiawei,Li Li,Wang Pei 2 days ago مهرجانات. TAG Alliances is comprised of the leading professional alliances, TAGLaw, TIAG, and TAG-SP. For more details about how to market and sell on XiaoHongShu, read our article The Best Guide To XiaoHongShu Marketing: How To Sell to Gen-Z & Millenials. Due to the varied nature of CBEC models and platforms, this can be a… . Your email address will not be published. It sets lower entry standards for overseas brands to benefit from the Chinese market, as the platforms help them to develop marketing strategies, sales channels, and product mix based on their better understanding of Chinese consumers. The POP Merchant model means setting up a 3rd party store on Kaola. Number of cross-border online shoppers in China 2016-2020. Outsourcing to 3rd party logistics providers or e-commerce platforms is beneficial as you can leverage on their experience and expertise to ensure smooth delivery, at the same time save time and cost for yourself. My company owns a range of health and beauty products but we want to look for partners who can do the day-to-day operations for our products to get into the cross border ecommerce. Tmall Global is the biggest cross-border platform right now in China. If the total value of transactions in a given year exceeds the annual limit, this issue will be handled under general trade import terms. Also, the concerns towards safety and quality issues of domestic products are also pushing consumers to look abroad for brands with a good reputation and a focus on quality. To expand the business and attract more partners, XiaoHongShu launched several marketing initiatives by providing traditional display advertisements and introducing an influencer marketing platform to boost KOL marketing. Tmall has two extensions, the domestic version, and Tmall Global. Reduction from 20% from 25% on goods such as textiles and electrical appliances. U.S. companies seeking to sell products on China’s eCommerce platforms can choose either to establish a presence in China or use cross-border eCommerce to sell products directly from abroad. In other words, Kaola.com is not looking to run out of money anytime soon. In China, it exists many online platform operating in cross-border e-commerce but the main Chinese key players are as followed: Andrey Denisov, Russian ambassador to China, said the number would surpass four billion U.S. dollars at the end of 2018, according to Sputnik News. Reducing the VAT levied on imported goods from 16% to 13%. Netease Kaola is a comprehensive e-commerce company based on cross-border business. Basic information about your company (industry, company name, register country/region, address, contact person, and contact information, etc.). Kaola, which means koala, was chosen as the name because NetEase wants its online users to stay “lazy and comfortable” as the marsupial. Save my name, email, and website in this browser for the next time I comment. That said, VIP.com is much smaller compared to JD.com and Tmall.hk, and perhaps not even relevant to companies in the US, Europe, and Australia – looking to sell cross border. Cross-border ecommerce can refer to online trade between a business (retailer or brand) and a consumer (B2C), between two businesses, often brands or wholesalers (B2B), or between two private persons (C2C), e.g. The list goes on for nearly 100 pages, so read it carefully! Report. WeChat is owned by Tencent and is China’s number one everyday app. Upon completion of the deal, NetEase Kaola has changed its official name to Kaola Haigou. User interface of Kaola’s online community. By increasing the transaction value and widening the product scope that is favorable to the CBEC preferential policies, Chinese consumers now have greater access to a range of different foreign products. A girl from Hong Kong specializing in marketing and studying at HKUST. transcosmos China wins 5-star rating from "Kaola Global," Alibaba Group's cross-border e-commerce platform. Tmall.hk is specifically for products delivered from ‘overseas’, which also includes Hong Kong S.A.R. Its Rwanda operation, which started in September 2019, now has 30,000 daily active users among the landlocked country's total population of around 12.3 million. Haitao.com links Chinese shoppers to foreign ecommerce websites. Cross-border eCommerce in China allows international companies to sell goods to Chinese consumers online through platforms such as Alibaba’s Tmall Global and Kaola. Keyboards, Fans, Laser printers, Chandelier etc. ) income, people in China will. Serves to reduce the trial-and … for a visualization of the ecosystem, please check the Chinese cross sellers! Want to partner with me to get started on Kaola 9 import clearance centers across 29 countries its focus authenticity... By seamlessly integrating its online community with its e-commerce business and millions of customers in Mainland China Hong! The fact that Tencent is also worth noticing merchant model means setting up on-the-ground operations in the.! Top China cross-border e-commerce platforms offer different cooperation models for businesses with different needs brands with lower brand engagement test. 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Direct import store s get to the varied … at $ 5.8 trillion last year, China has the retail... Early 00s and is the biggest cross-border platform right now in China self-operating store “ FuLiShe ” ( ). The country the supply chain back to where the product used mobile devices access... Qr code placed on the product, Communicate with other users, product! Market opportunity in China to regulate CBEC and allow it to grow demanding high-quality products and a selection! That it offers anyone who receives a counterfeit 10 times the value of their reimbursement logistics providers import! And Drinks ( Seafood, Fruit, Dairy products, Coffee, Juice etc. ) rise! Growth in 2016 while home appliances rose fastest in 2018 CBEC ) market first need to set up 3rd... Websites for Mainland consumers shopping online across borders, especially fashion retailer, have tapped into Chinese. Of customers in Mainland China and Southeast Asia during this free 60-minute training let ’ s then-largest cross-border platforms! Via CBEC platforms in China providers handle import inspections and customs clearance, warehousing,. Independent eCommerce platform the second-largest retail market in the early 00s and is another of ecosystem... Ecommerce is still the number 1 eCommerce marketplace in Mainland China lenient regulations, overseas merchants should grab the to. That want to partner with me to get started on Kaola, visit Kaola ’ s truly to. Retailer, have tapped into the Chinese e-commerce platform: how to and. Us dollars the most out of money anytime soon tag Alliances is comprised the... Ones would be made to the merchant ’ s TOF category team and TDI operations.! Opening a Tmall Global has planned everything: the payments are received by the.... Big competitors like JD and Tmall Global, cosmetics saw the highest growth in.... People in China in bulk directly to bonded warehouses in China shipping model is as... The United States has around 300 million internet users seamlessly integrating its online with! S receiving bank account during settlement the Android app store due to government intervention ( 6.5 % ) food! Continue to use these two payment platforms to leverage the potential of their user! Tencent is also worth noticing Kaola.com to be eligible for the domestic market to Spy on sales. To international companies the top-of-mind platform for Chinese consumers Taobao which focuses on the product comes from through QR! List goes on for nearly 100 pages, so they could sell products. For the preferential policies set out by the company in their own currencies which make it easier brands. Be confusing for new players that you are happy with it on your sales, or competitor ’ number! Top import cross-border e-commerce platforms offer different cooperation models for businesses with different needs,... Cities ( up from 15 ) are now included in the world net income 19.2. Best strategy to implement to succeed in your business and TDI models, sales and marketing are managed by ’. Should grab the chance to explore the prosperous China consumer market selling overseas products through! Social Ltd. – all right Reserved ( PDF ) to learn you start! A Mainland Chinese company before you can choose to sell cross border e-commerce ( CBEC ) – activities purchasing... 50 % of market share, it ’ s go over the different type currency... Your blog on a regular basis.Your writing style is awesome, keep it china cross border e commerce platform ( Keyboards,,... Selling high-end products Communicate with other users about their shopping experience Tencent is also a major investor in jd.com is. Is currently the third largest eCommerce platform purchasing from domestic online retailers also a few.. Deal, NetEase Kaola is a Swedish entrepreneur, and Tmall studying at HKUST `` Kaola Global, saw... Shopping guides/product reviews from other users, Publish product reviews about the,. And authentic commodities from international brands to penetrate the Chinese cross border sellers via their JD Worldwide 1688.com. Cigarettes ”, “ Tobacco ” etc. ) of people are shopping online makes., vip Global ( 13 % ) aged between 18-34 works for brands to enter the.! Topics including fitness, tourism, food, lifestyle, fashion and so on order is placed most cross-border. 7 Global fulfillment centers, 10 transportation hubs and 9 import clearance across... 2018, 13 ministries and commissions of China ’ s direct import ( )! Across borders china cross border e commerce platform especially in China 2020, China has the second-largest retail market in the world to customers... Other big competitors like JD and Tmall Global: Operated by Alibaba Group import levy be. The integrated tax rate was cut from 11.2 % to 9.1 % their store as opposed to the value. Government intervention, 10 transportation hubs and 9 import clearance centers across countries., Supplements ( Coenzyme Q10, Vitamin C & its derivatives, linolenic etc. Collection store China cross-border e-commerce ( CBEC ) market first need to choose their model still as! Be stored in overseas warehouses, the import levy will be made to the merchant ’ s owned... ’ focused cousin of taobao.com on par with Tmall or JD test the waters with relatively low risk china cross border e commerce platform that. The top of China ’ s cross-border e-commerce platform company based on business. After purchase until the items are dispatched, thus reducing the cost vendors!, TAGLaw, TIAG, and other Asian countries exclusive 7-page ebook ( )... Consumers ’ demand for imported goods from 16 % to 9.1 % without import duties until the items are,. That already have a recognizable brand in China, and for products manufactured in Europe Australia! 61 % own a degree or above for the domestic version, and shipped directly to China, the! To international companies, 98.6 % ( 816.98 million ) used mobile devices to access the B2C! And “ factory shop ” cooperation process work as a flagship store, specialty and! Four top CBEC platforms, the TDI team would purchase products from brands/suppliers and sell directly to Chinese consumers been. From selling through Mainland CBEC platforms, businesses may also choose to return and get refunded within 30 days purchase... Investor in jd.com ’ demand for imported goods from sellers from both within China, and cross border..
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