The Top 3 China Cross-border Ecommerce Platforms Read Now, #1: Tmall: The Biggest Player Backed by Alibaba, #2: Kaola: Direct Selling of Authentic Goods, #3: XiaoHongShu: Content-driven Platform for Beauty Lovers. The CBEC pilot zones have been pivoted as the ideal home for manufacturing companies, e-commerce export enterprises, e-commerce platform companies, logistics enterprises, and financial service firms. 6 Tips on Cross-Border E-Commerce from China. We also maintain offices assisting foreign investors in Vietnam, Indonesia, Singapore, The Philippines, Malaysia, Thailand, United States, and Italy, in addition to our practices in India and Russia and our trade research facilities along the Belt & Road Initiative. China’s cross-border e-commerce, or Haitao, grows on search for exclusivity and thrift. Other key cross-border e-commerce players include Rakuten (Japan) and JD.com (China). Currently, Chinese cross-border e-commerce is growing at an estimated annual rate of 20-30%. China has 105 cross-border e-commerce pilot zones, covering 30 provinces, autonomous regions and municipalities. Post was not sent - check your email addresses! The approval process of health products is … Asyou can imagine, that’s a significant reduction in red tape. For a single transaction exceeding a certain limit – RMB 1,000 (US$141.3) for mailed item from abroad or RMB 800 (US$113) for items from Hong Kong, Macao, or Taiwan, goods must be cleared and subject to general import taxes (Tariff, VAT, and CT), or they will be returned. Such substantial growth reveals a great market opportunity in China. It was accused of facilitating the sale of restricted, forbidden and fake products, which included tobacco, electronic cigarettes and medicinal products such as skin-injection skits. It doesn’t require an import permit, but products may be subject to tax up to 15/30/60% according to your product. 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. L’Oréal’s brand account and digital store on XiaoHongShu, XiaoHongShu has been very successful in building a community of user-generated content (UGC). As we mentioned above, retail imported goods have to be on the “List of Goods under Cross-border E-commerce Retail Importation”. In total, they have reached a penetration rate of 93.3%. Over these limits, consumers will need to pay full general import taxes, including tariff, VAT, and CT. Retailer Case Study: Feelunique Learn how we helped Feelunique scale its e-commerce operations, starting with a China-optimized cross-border e-commerce website, mobile app, and WeChat mini-program, and later expanding to Tmall, JD.com, etc. The domestic version is only for companies with a China business entity, with operations and stock held in China. For goods mailed into the country by individuals, the electronic information of which can’t be accessed by Customs – the parcel tax will be levied. 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). Haitao, as cross-border e-commerce is known in China, is a $1.8 trillion business involving 211 million shoppers in the country. The mechanism can achieve information sharing among customs, taxation, foreign exchange, and other government departments, which largely shortens the period of goods export declaration. The total product value must not exceed 1000 RMB for 6 products, but need to check on the restrictions and prohibitions terms of import in China (cf. It has created a shopping cycle on the platform, which users. Foreign investors who are looking to tap into China’s CBEC market should stay abreast of the latest developments. Please contact the firm for assistance in China at china@dezshira.com. 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. China’s cross-border e-commerce boom began in 2013, after regulations relaxed. The change in Chinese consumer needs and Chinese governmental support propel the popularity of cross-border e-commerce in China. Pilot cities which joined the program of China’s CBEC retail importation usually overlap with CBEC pilot zones geographically. The CBEC pilot zones are designed to boost China’s import and export businesses (especially export). However, though operation hurdles seem to be removed through outsourcing to e-commerce platforms. In January 2020, China added 50 cities and the whole Hainan island into the pilot program of CBEC retail importation. The introduction of the CBEC new policies facilitates further growth and development of the market. Cross-border e-commerce has become increasingly popular amongst Western brands and retailers looking to enter the China market for the first time. 1. Cross-border trade in Heihe, China's northernmost free trade area adjacent to Russia's Blagoveshchensk, has remained stable this year. 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. Many suggest that you would first import the goods by cross border ecommerce, and as your business and volume pick up, you would move to the traditional model. This indefinitely extends the waiver of the pre-importation registration requirements on specified categories of products, including cosmetics, infant formula, health food, and medical devices, which was originally set to expire on December 31, 2018, as long as the goods are on the ‘CBEC positive list’. The establishment of these pilot zones has changed everything for the better. Moreover, Chinese customers have a positive perception of foreign products. CIT will be assessed and levied with a taxable income rate of 4 percent, namely: Further, if the enterprise meets the conditions of preferential policies for a small low-profit enterprise, the enterprise can enjoy the applicable preferential CIT policies for small low-profit enterprises on top of the aforementioned treatments. Diese Statistik bildet den Umsatz im Cross-Border-E-Commerce-Markt (B2C) in China im Jahr 2017 sowie eine Prognose für die Jahre bis 2022 ab. The “Proprietary Supplier” and “Factory Shop” cooperation process work as a direct procurement model. Umfrage zu Gründen für grenzübergreifende Online-Einkäufe weltweit 2018 . In 2018, China announced a series of new regulations which are designed to improve the regulatory framework of Cross Border E-Commerce (hereafter CBEC) retail imports and promote the development of this sector. To be noted, under the CBEC retail importation program, the imported retail goods have to fall under the “List of Goods under Cross-border E-commerce Retail Importation” (2019 version), which is also dubbed a ‘CBEC positive list’, limited to personal use, and must satisfy the criteria stipulated in the tax policies for CBEC retail importation. 2. Apart from selling through mainland CBEC platforms, businesses may also choose to sell goods on overseas websites for mainland consumers shopping online. These pilot zones provide a streamlined system with simplified regulations for … It also lowers thecost of doing business in China. In April 2019, the State Council issued the Circular of the State Council Customs Tariff Commission on Issues Concerning the Adjustment of Import Tax on Personal Effects, which affects the Personal Postal Articles Tax as below: Example of personal postal articles tax calculation. Other prominent platforms include JD Global (13%), VIP Global (9.2%) and XiaoHongShu (6.5%). Customers can even trace the supply chain back to where the product comes from through a QR code placed on the product. 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. Also, you can choose to return and get refunded within 30 days after purchase. Since April 2019, the parcel tax has been reduced to 13 percent, 20 percent, or 50 percent, depending on the type of goods and can be exempted if the tax is less than RMB 50 (US$7.07). As a prerequisite condition, these pilot cities usually own free trade zones (FTZs), comprehensive bonded zones (zones), and act as logistics hubs with trading partner countries. How do enterprises benefit from these programs? With the rise of online payment, several payment institutions have been flourishing in China. As China continues on its path of economic recovery from the pandemic, smaller U.S. beauty brands are turning to Alibaba’s cross-border e-commerce to reach a Chinese audience. Chinese companies look to ride a new cross-border e-commerce wave driven by the coronavirus ... "There is a trend towards more direct shipping out of China through digital cross-border … 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. From another perspective, it means that around 73.6% of China’s online population shop online! 37 cities (up from 15) are now included in the cross-border tax rebate. مهرجانات. 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. In another incident, the platform was accused of hosting huge amounts of fake content. Gleichzeitig verschärft sich der Wettbewerb, da immer mehr Unternehmen aus aller Welt in den chinesischen Markt expandieren. As of Sep 2019, Alibaba acquires NetEase Kaola in a deal worth $2 billion. ), Sports and Activities Equipment (Basketball, Fishing Rods, Skateboards etc.). They call it “six systems and two platforms” – the “six systems” refer to the information sharing system, financial service system, intelligent logistics system, e-commerce credit system, statistics monitoring system, and risk prevention and control system; the “two platforms” refer to the online integrated service platform and offline industrial park platform. Save my name, email, and website in this browser for the next time I comment. China’s large market of 500 million online shoppers presents an irresistible opportunity, with an estimated 25% of shoppers buying through cross-border … Within Tmall Global Stores, there are also a few categories. 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. Imported goods can be stored without import duties until the items are dispatched, thus reducing the cost for vendors. Meanwhile, it builds up CBEC enterprises’ credit database and risk prevention and control systems, and provides enterprises with more innovative services in financing, guarantee, foreign exchange settlement and sale, and intelligent logistics. Read below more about ecommerce growth, Ecommerce sales And cross-border ecommerce in China. China’s crackdown on daigou is part of its moves to strengthen e-commerce regulation and better control the rapidly expanding sector. Most zones are located in coastal regions like Beijing (1), Shanghai (1), and the provinces of Guangdong (13), Zhejiang (10), Jiangsu (10), Shandong (7), and Fujian (6). In the first three quarters this year, China's import and export through the customs cross-border e-commerce management platform reached 187.39 billion yuan ($28.03 billion), a year-on-year increase of 52.8 percent, Zhu said. Reduction from 20% from 25% on goods such as textiles and electrical appliances. 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. China’s Internet population has passed a prominent milestone. Total amount of cross-border e-commerce retail in China 2015-2019. 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. 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! 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. Cross border e-commerce in China holds a specific distinction where international companies are allowed to sell products to Chinese consumers online, through authorized platforms such as Alibaba’s Tmall Global and Kaola, JD Global or WeChat, at preferential duty rates and without a license to operate a business in China. These companies would have to import their products from abroad, which requires an import/export license, before they can sell via the domestic eCommerce channels. But the e-commerce service providers, or the logistic companies as the case maybe, will act as the withholding agent and pay tax on behalf of individual customers. In a move to facilitate CBEC import and export, local CBEC pilot zones are exploring innovative breakthroughs in the management of customs clearance, tax collection and management, foreign exchange supervision, cross-border financial services, and logistics. Cross-border E-commerce in China is unique because of the Chinese method of doing business, and due to the specificities of the Chinese market itself. Unlike its counterpart Taobao which focuses on C2C retail, Tmall specializes in selling branded commodities from international brands. It was always clear that the Chinese authorities would at some stage seek to better regulate cross-border e-commerce and two … 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. Number of cross-border e-commerce companies in China 2019, by type. Check the Chinese version of the list here: Positive List for Commodities Traded through Cross-Border E-Commerce (2018). On the other hand, the import levy will be waived by Customs if the duty payable does not exceed RMB 50. At $5.8 trillion last year, China has the second-largest retail market in the world. China Cross-border e-commerce platforms have become highly popular among consumers as major channels to buy authentic foreign goods. France – The fastest growing e-commerce segment in France is cross-border purchases. 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. Despite COVID-19's impact, robust development in e-commerce has been a major boost for the local economy. An increasing amount of people are shopping online across borders, especially in China. In case the transaction does not happen through an e-commerce platform linked with the Chinese Customs network, the inbound and outbound courier operator or postal enterprises will undertake the corresponding legal liability – they will need to transmit the electronic information of transaction, payment, and logistics to Customs, according to the Notice on Work Relating to Improved Regulation of CBEC Retail Importation (Shang Cai Fa [2018] No.486). 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. So far the government h has rolled out a number of favorable policies since 2012 to regulate CBEC and allow it to grow. If the total value of transactions in a given year exceeds the annual limit, this issue will be handled under general trade import terms. With the ever increasing technology advance, the world is much more connected than ever before. Cross-border e-commerce in China holds a specific distinction. Taobao.com is mainly about products made in China, for the domestic market. Cross-Border E-commerce in China: a convenient entry strategy. With the slogan “the world’s best lifestyle at your fingertips”. With this model, merchants can make use of Kaola’s website and sell directly to Chinese consumers. Besides, the shipping process is also very quick, meaning that it requires about the same delivery time as domestic goods, ensuring a good customer experience. China cross-border ecommerce retail imports market. To learn more about how to get started on Kaola, visit Kaola’s merchant portal to understand the requirements for entry. All of this serves to reduce the trial-and-error cost and make it easier for brands to enter the market. Foreign businesses that want to access the Chinese cross border e-commerce (CBEC) market first need to choose their model. In 2019 Q1, Kaola (27.5%) surpassed Tmall Global (25%) to be the market leader of China’s cross-border e-commerce market. Allein in Europa be… With increasing digitalization, cross-border e-commerce (CBEC) is booming globally and has become a massive factor in the growth of the global economy. Moreover, Chinese customers have a positive perception of foreign products. Below we’ll introduce the 3 most popular cross-border e-commerce platforms in China. Currently, the bonded warehouse mode involves two customs supervision codes – 1210 and 1239. For unsupported currencies, transactions would be made in US dollars. For example, Hangzhou is the city where Hangzhou CBEC Pilot Zone was established. This community enables users to leave comments or get advice about different products. 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