Both JD and Tmall.hk want quality products. As of July 2019, the app was removed from the Android App Store due to government intervention. If the dutiable value of an item exceeds RMB 5,000 for a single transaction but is below the annual limit of RMB 26,000, it may still be imported via the standard China cross-border e-commerce retail channels. For a visualization of the ecosystem, please see the image gallery below. Payment settlement details of WeChat Pay and Alipay. Therefore, merchants are highly recommended to use these two payment platforms to leverage the potential of their large-scale user base. According to China Internet Watch, the China cross-border e-commerce retail import market is valued at 620 billion yuan (US$96.98 billion) in 2019. Cross-border e-commerce will be consolidated through Alibaba’s acquisition of the Kaola platform, further solidifying the company’s dominance in the online sector. According to Baidu, there were over 95,000 articles related to keywords “Cigarettes”, “Smoke”, “Tobacco” etc. JD.com is Alibaba’s archenemy and the number 2 eCommerce platform in China. According to Alipay and Tenpay’s official statement, in terms of mobile payment, WeChat Pay recorded 460 billion annual transactions in 2018, while Alipay only recorded 197.5 billion transactions. It focuses on the direct selling of high quality and authentic commodities from around the world to Chinese customers. In 2018 alone the marketplace introduced 122% more overseas brands, over 80% of which entered the Chinese market for the first time. Also, the policy of return & exchange of products can be more easily implemented through the bonded warehouse model. 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. Basic information about your company (industry, company name, register country/region, address, contact person, and contact information, etc.). The domestic version is only for companies with a China business entity, with operations and stock held in China. Imported goods can be stored without import duties until the items are dispatched, thus reducing the cost for vendors. An increasing amount of people are shopping online across borders, especially in China. 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. Cross-border e-commerce in China holds a specific distinction where 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 … Many well-established logistics providers handle import inspections and customs clearance, warehousing space, order management services, and other services to their clients. With rapid economic growth and higher disposable income, people in China are demanding high-quality products and a broader selection of goods and services. For example, brands can open a 3rd party flagship store, or simply supply products to the platform without setting up a brand name store. If you haven’t read it, we highly recommend read that article first: The Ultimate Guide to Cross-Border E-commerce in China: History and Scale. In 2018, the value of China’s cross-border e-commerce trade in goods was around 134.7 billion RMB, of which 78.58 billion RMB was from import. 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. There are mainly three modes for entry, namely “POP Merchant”, “Proprietary Supplier” and “Factory Shop” cooperation process. So far the government h has rolled out a number of favorable policies since 2012 to regulate CBEC and allow it to grow. In other words, Kaola.com is not looking to run out of money anytime soon. Highlights about CBEC in China. ... 2019 H1 China Cross-border E-commerce Report. Kaola is so confident in its model that it offers anyone who receives a counterfeit 10 times the value of their reimbursement. User interface of Kaola’s online community. It may, however, only be a matter of time before Wechat becomes a marketplace on par with Tmall or JD. All of this serves to reduce the trial-and … Market places: Currently, the four top CBEC platforms in China are: TMall Global: Operated by Alibaba Group. 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. 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. 2020’s Biggest US Forecasting Shocks. Kaola, was launched in 2015 by Nasdaq-listed NetEase, and is another of the larger China cross-border e-commerce platforms. (Xinhua/Cyril Ndegeya) Headquartered in east China's Hangzhou, KiKUU focuses on cross-border e-commerce in Africa. Canada Ecommerce 2020. To support these new initiatives, Alibaba’s smart logistics network, Cainiao, will continue to expand its network of bonded warehouses in China, aiming to triple its total size to three million square meters in three years. Categories Blog. 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. JD.com also requires that you have a registered trademark. The full list of cities covered by the pilot zone program: Beijing, Tianjin, Shanghai, Tangshan, Hohhot, Shenyang, Dalian, Changchun, Harbin, Nanjing, Suzhou, Wuxi, Hangzhou, Ningbo, Yiwu, Hefei, Fuzhou, Xiamen, Nanchang, Qingdao, Weihai, Zhengzhou, Wuhan, Changsha, Guangzhou, Shenzhen, Zhuhai, Dongguan, Nanning, Haikou, Chongqing, Chengdu, Guiyang, Kunming, Xi’an, Lanzhou, Pingtan. You can find the list here. 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. Through selling authentic and high-quality goods, Tmall has established itself as the destination for quality, brand-name goods catering to increasingly sophisticated Chinese consumers. The incident reveals the difficulty of monitoring a large volume of content for a social platform. XiaoHongShu provides customer service and full logistics support for partner brands. 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. Apart from that, Kaola holds a “Cheaper than Abroad” promise that it operates with preferential policy for postage and tax, such as having warehouses in free-trade zones. 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. 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. Report. Q4: Are there any rules and regulations related to China cross-border e-commerce? Reduction from 20% from 25% on goods such as textiles and electrical appliances. 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. ... Cross-Border Digital Buyers in … Kaola.com, a website, launched in 2015, is today the most important cross-border e-commerce platform in China. 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. ), Furniture and Machinery (Keyboards, Fans, Laser printers, Chandelier etc. For details (fees, procedures, documentation, etc.) 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. The introduction of the CBEC new policies facilitates further growth and development of the market. 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. The number has been increasing year on year as T-Mall Global invites more and more brands onto the platform. Related. JD Worldwide: Belongs to JD.com, the … As a booming e-commerce market, there are many cross-border e-commerce platforms in China selling overseas products to Chinese consumers. China's Commerce Ministry data showed that China-Russia cross-border e-commerce hit 3.7 billion U.S. dollars from January to September last year, up 23 percent year on year. Cross-border e-commerce in China holds a specific distinction. However, though operation hurdles seem to be removed through outsourcing to e-commerce platforms. Today, Tmall.com is almost as big as Taobao.com – which makes up more than 50% of the Chinese B2C eCommerce market. Export2Asia.com has been quoted or mentioned in, Export2Asia was an incredible resource as we looked to expand our merchandise sales overseas, Export2Asia provided us with a understanding on how to undertake our expansion in China, Export2Asia Business package is worth every Dollar, Suggestion: Watch the 10 minutes video tutorial before reading this article, Free Webinar: How to Sell Online to China & Southeast Asia. Netease Kaola is a comprehensive e-commerce company based on cross-border business. A Bonded warehouse is a secured area in which dutiable goods may be stored, manipulated, or undergo manufacturing operations without payment of duty. According to a report by McKinsey, China accounted for less than 1% of the value of worldwide e-commerce transactions only about a decade ago, while the share now has grown to more than 40%! To open a store on XiaoHongShu, businesses can choose from two operating models – to open a 3rd party brand store or to be a self-supplier. JD Worldwide, part of JD.com. JD.com launched as a more traditional online store, rather than an open B2C platform. The item will be subject to import tariffs, VAT and consumption tax at the standard rate and the transaction value will count towards the annual limit. It doesn’t require an import permit, but products may be subject to tax up to 15/30/60% according to your product. The cross-border e-commerce landscape will become more consolidated. . With the slogan “the world’s best lifestyle at your fingertips”. Besides, The MOF, the GAC and the State Administration of Taxation (SAT) also issued the Circular on the Improvement of Tax Policies on Cross-Border E-Commerce Retail Imports, raising the cut-off amount for tax-free cross-border purchases from RMB 2,000 to RMB5,000 for single transaction, while the annual per person limit will be increased to from RMB 20,000 to RMB 26,000. Comparatively, the United States has around 300 million internet users. For example, WeChat Pay Global supports 16 currencies including GBP, HKD, USD, JPY, CAD, AUD, and EUR. Payment companies (Alibaba, Tencent, etc.) Chinese Cross-Border E-Commerce Overview. 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. 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? Personally, I find Kaola.com to be one of the most interesting platforms for our customers here at Export2Asia.com. Demographic distribution of China Cross-Border E-commerce customers. UK Holiday Season Shopping 2019. XiaoHongShu’s self-operating store “FuLiShe” (福利社). With an increasing number of Internet giants and traditional retailers setting up their own CBEC businesses in China, the government has tried to be as supportive as possible to encourage further investment in the country. 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). Before, you had to register a company, set up an office, and hire local employees before you even sold your first product. Feel free to book a consultation call or use the many free resources on this website. In another incident, the platform was accused of hosting huge amounts of fake content. In fact, it’s the Chinese language version of Alibaba.com. Noticing users’ demand for buying foreign goods, XiaoHongShu launched its own China cross-border e-commerce platform, the “RED store” in 2014. In 2018, the value of China’s cross-border e-commerce trade in goods was around 134.7 billion RMB, of which 78.58 billion RMB was from import. 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. If you have enquiries about products that can be sold to China, please feel free to contact us for detailed information! With increasing digitalization, cross-border e-commerce (CBEC) is booming globally and has become a massive factor in the growth of the global economy. Tmall, which started out as ‘Taobao Mall’ was launched by Alibaba.com as the more ‘premium’ focused cousin of Taobao.com. For tax rates in different product categories, please check the list here (in Chinese). In the pilot areas, such as Shanghai, Hangzhou, Shenzhen, and Guangzhou, next-day delivery or the same day delivery become normal for goods ordered through the platform. 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. We help companies start selling online in Mainland China and Southeast Asia. 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. Overview of China’s Cross-border Ecommerce Market   Read Now, Must-know China Cross-border E-commerce Rules for Foreign Players   Read Now. 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. Tmall has two extensions, the domestic version, and Tmall Global. We use cookies to ensure that we give you the best experience on our website. While bonded warehouses can ensure customers enjoy the same delivery experience as if they are purchasing from domestic online retailers. And yes, it’s also owned by Alibaba Group. According to reports released in the second quarter of 2019, to rebuild people’s trust towards the platform, XiaoHongShu is actively participating in web cleanup campaign to get rid of spam, or any type of inappropriate content. Unlike the other platforms listed in this article, 1688.com is B2B. As of March 2019, The Ministry of Finance, GAC, and SAT issued the Announcement on Policies for Deepening VAT Reform, announcing a slew of new tax policies which took effect from 1 April 2019, latest updates include: The government did not lower consumption tax, which means consumers still have to pay for consumption tax on CBEC imported products including high-end skincare and cosmetics (15%), fine jewelry (10%) and red wine (10%). In a previous post, we’ve briefly talked about cross-border eCommerce in China in terms of its history and its current scale. Fredrik Gronkvist is a Swedish entrepreneur, and co-founder of Export2Asia.com. To export your products in China, you’ll get 3 different choices. I am looking for those who want to partner with me to get my products into China. From another perspective, it means that around 73.6% of China’s online population shop online! With technology advancement, it was reported that as of December 2018, the number of China’s online shoppers has increased 14.4% year-on-year to hit 610 million! It is exciting news for foreign businesses as cross-border e-commerce is an efficient way to get a slice of the China retail market without actually setting up an offline store in the country. To get your products shipped in China, you can either develop your own logistics network (which is extremely difficult) or rely on 3rd party logistics providers or e-commerce platforms that you are cooperating with. Taobao.com was launched by Alibaba Group in the early 00s and is the original Chinese eCommerce platform. 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. ), Sports and Activities Equipment (Basketball, Fishing Rods, Skateboards etc.). Remember that cross border ecommerce is still considered as more ‘high end’. As mentioned previously, as of November 2018, the Ministry of Finance (MOF) and several other authorities jointly issued the Announcement on Adjusting the List of CBEC Retail Imports and the List of CBEC Retail Imports (2018 Version). The China cross border e-commerce market is expected to grow significantly. Unlike its counterpart Taobao which focuses on C2C retail, Tmall specializes in selling branded commodities from international brands. Below we’ll introduce the 3 most popular cross-border e-commerce platforms in China. Tmall Global, part of Tmall platform and owned by Alibaba Group, is leading the import cross-border e-commerce platform in China. 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. According to China Internet Watch, as of December 2018, the total number of internet users in China has reached 829 million, which occupies 59.6% of the total population. The positive list is very long with around 1,321 types of commodities, but generally includes product categories such as: As the list greatly influences overseas businesses’ e-commerce operations in China, make sure that you have gone through the list before you make any significant investment. In China, it exists many online platform operating in cross-border e-commerce but the main Chinese key players are as followed: Chinese E-commerce Platform: How to Spy on Your Sales, or Competitor’s Sales? The major players include Tmall Global, Kaola and JD WorldWide. In this article, we list some of China’s leading eCommerce platforms – and explain which ones you should focus on if your business is located in Europe, Australia or the United States. The pilot zones would be benefited the new regulations and the preferential tax policies, also with streamlined logistics, storage and customs clearance procedures in a bid to optimize the level of imported premium and everyday goods. 3. Feature: E-commerce platform from China unleashing Rwanda's potential for cross-border shopping 0 Comment(s) Print E-mail Xinhua, November 25, 2020 Adjust font size: Also, many of China’s e-commerce giants provide various modes of warehouse and logistics support for overseas partners. These are extremely popular among global brands that already have a recognizable brand in China. This is an interesting article. Interestingly, 98.6% (816.98 million) used mobile devices to access the internet. Now, all foreign retailers are allowed to sell on that platform. While there is no built in ecommerce platform inside WeChat (at least not yet), there are several developers of WeChat store platforms – including Walkthechat.com and Weidian. It has developed an extensive logistics network of 7 global fulfillment centers, 10 transportation hubs and 9 import clearance centers across 29 countries. Your email address will not be published. The list goes on for nearly 100 pages, so read it carefully! In view of Kaola’s great market share and growth potential. Tmall Overseas Fulfillment (TOF) works for brands with lower brand engagement to test the waters with relatively low risk. Operation Pattern: Vertical Platform, B2C, Proprietary Trading, Sub-Platform co-released the updated version of “Positive List for Commodities Traded through Cross-Border E-Commerce (2018)”, under which 63 new items categories were added to the positive list for cross-border trade, while the 2016 version was abolished. The new measures took effect on 1 January 2019, which opens up the cross-border market for luxury retailers who are selling high-end products. In recent years, many western players, especially fashion retailer, have tapped into the Chinese e-commerce market. A girl from Hong Kong specializing in marketing and studying at HKUST. (Resources from ‘ China Cross-border E-commerce Guidebook ‘ published by the Consulate General of the Netherlands in Shanghai) The positive list contains at least 60 more goods than were on the preceding version, including high-demand goods such as wine and fitness equipment. What are the risks for cross border ecommerce. 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. It’s also growing extremely fast, with thousands of international sellers, and millions of customers in Mainland China. Kaola.com. 2. Due to the varied nature of CBEC models and platforms, this can be a… transcosmos China wins 5-star rating from "Kaola Global," Alibaba Group's cross-border e-commerce platform. To further attract foreign brands, Alibaba launched an English-language portal in 2019, which aims at assisting merchants with tasks such as opening shops on Tmall Global. 10. Currently working with Dragon Social's content marketing team. Share: AgencyChina. Customers can even trace the supply chain back to where the product comes from through a QR code placed on the product. Articles cover topics including fitness, tourism, food, lifestyle, fashion and so on. Headquartered in east China's Hangzhou, KiKUU focuses on cross-border e-commerce in Africa. ID certificates of Legal Representative and Shareholder. With the aim of authentic information sharing, the platform has successfully developed into a trusted source of advice and recommendations for its mainly female users. Your email address will not be published. Cross-border eCommerce is experiencing significant growth; estimates suggest that the current $122 billion of cross-border eCommerce transactions could grow to $199 billion by 2022. 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. 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 … China Cross-border e-commerce platforms have become highly popular among consumers as major channels to buy authentic foreign goods. Dutiable value is calculated on the basis of the transaction price appraised by Customs, which includes the price of the goods and packing, shipping, insurance, and other fees. Cross-border e-commerce. 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. 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. Launched in 2013 by Miranda Qu and Charlwin Mao, XiaoHongShu, literally the “Little Red Book”, is a social e-commerce app with over 250 million registered users as of 2019. The “Proprietary Supplier” and “Factory Shop” cooperation process work as a direct procurement model. 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! Taobao.com is still the number 1 eCommerce marketplace in Mainland China, and the given choice for low to medium priced goods. Unlike TOF which places unsold products in overseas warehouses, the selected products will be shipped in bulk directly to bonded warehouses in China. Kaola works under a direct procurement model, meaning the company has established overseas offices in countries like the US, Japan, and Australia, to ensure it gets its products straight from the source! To launch a store on Tmall Global, brands can choose from 3 main business models, which are Tmall Overseas Fulfillment, Tmall Direct Import, and Tmall Global Flagship store. Overall, consumers’ demand for imported goods has been shifting from fulfilling daily necessities to improving quality of life. Number of cross-border online shoppers in China 2016-2020. You can, Top China Cross-Border eCommerce Platforms: Foreigner’s Guide. All of this serves to reduce the trial-and-error cost and make it easier for brands to enter the market. before settling down for any platform. 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. Universal Postal Union (UPU):An informal technique that allows you to send small parcels in China. A transfer will be made to the merchant’s receiving bank account during settlement. Kaola, which means koala, was chosen as the name because NetEase wants its online users to stay “lazy and comfortable” as the marsupial. Thank you for educating me. Author: Nenad Cetkovic , COO from Lengow, will held a presentation on “Crossborder Ecommerce: Making The Most Out Of China’s Potential“ at the Ecommerce Berlin Expo, 2nd February, 2017, Stage A, 15:20pm. "The RCEP will propel the establishment of a more standardized and unified trading system in the region, create a sound environment for e-commerce and reduce the operational risks of cross-border business participants," said Diane Wang, founder and chairwoman of DHgate, a Chinese cross-border business-to-business e-commerce platform. He’s been based in Shanghai since 2011, and has been featured in Bloomberg, Alibaba, Globalsources, China Chief Executive, Quartz Magazine and more. Being one of the largest China cross-border e-commerce platforms, Tmall Global currently hosts more than 20,000 brands in over 4,000 categories from 77 countries and regions. Of china cross border e commerce platform sell cross border e-commerce market consumer goods ( FMCG ) announced that cross-border e-commerce platforms Global more! 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Growth potential currencies including GBP, HKD, USD, JPY, CAD AUD. Of taobao.com Cigarettes ”, “ Smoke ”, “ Tobacco ” etc. ) Kong...

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