Online sales and e-commerce in China

If you have a software product, a service that can be delivered from abroad or a physical product that people don’t mind waiting for, you can do business internationally directly from your own country. 

This is also valid for China if you keep in mind that you will have to adjust your marketing. You may have to make translations and accept different currencies, and for physical products you have to manage the whole shipping and customs process.
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Where it all starts: select a target group

As counts for any country: you first have to define the target group that you want to sell to. If these are businesses, then you can reach out directly through emails and targeted advertisements, e.g. on LinkedIn. If this arouses interest and gives a sufficient response rate, then you may have found an easy way to get the market’s attention. 

If your target group is more diffuse, or is a consumer group, then you have to rely more on advertising such as on Facebook or Instagram.

Translate your website and check your SEO

Even if your business is really international, it may be wise to set up local website translations and check whether your text aligns with the culture. 

This also counts for China where people prefer reading in their own language and also search most of the time in their own language. Therefore you need to include the relevant keywords in your texts, and these may not be a direct translation.

With regards to content, my personal experience is that if you have a successful blog topic in one language, it is likely to do well also in other languages. Don’t reinvent the wheel, just make a proper translation.

Enable local payment

Customers who see prices and can pay in their local currency are three times more likely to deal with you. So it makes sense to offer this option.

Also for China offering local payment methods is recommended. Of course there are different options, but the easiest first step is to use credit or debit card payments.

Credit card payments typically work best up to an amount equivalent to 500 USD or EUR. If the invoicing amount is higher, there often is a different internal procedure required.

The e-commerce market in China

The Chinese online market is the largest in the world, valued at approximately USD 2.3 trillion in 2022. This immense market is fueled by a rapidly growing middle class, increasing smartphone and internet penetration, and a strong preference for online shopping platforms. Major players like Alibaba and JD.com dominate the landscape, offering a diverse range of products and services. Here are some of the main webshops in China:

1. Taobao (taobao.com)

Market Share: Largest C2C platform in China

Focus: Wide range of products, from fashion to electronics

Taobao stands as the largest marketplace in China, boasting an impressive 275.6 million monthly visitors. This platform thrives on user-generated content, such as product reviews and ratings, which enhances consumer trust. For businesses looking to sell on Taobao, leveraging its various marketing tools and advertising services is essential. Additionally, utilizing the AliPay payment system can streamline transactions and improve customer experience.

2. JD.com (jd.com)

Market Share: Generated US$155 billion in eCommerce revenue in 2023

Focus: Electronics, appliances, and a wide range of goods

JD.com is renowned for its robust logistics network and innovative delivery methods, including autonomous vehicles and drones. With a strong reputation for authentic products, it appeals to consumers seeking reliability. Sellers can capitalize on JD.com’s efficient delivery system and its focus on electronics and home appliances to reach a tech-savvy audience effectively.

3. Pinduoduo (pinduoduo.com)

Market Share: Fastest-growing eCommerce company with 354.4 million monthly visitors

Focus: Team purchases, social commerce, and agricultural produce

Pinduoduo has revolutionized online shopping with its unique features like team purchases and social commerce programs. This platform operates on a Consumer-to-Manufacturer (C2M) model, allowing businesses to directly influence product offerings based on consumer demand. It’s particularly effective for reaching price-sensitive consumers and promoting agricultural products, making it a valuable channel for sellers looking to tap into this market.

4. Tmall (tmall.com)

Market Share: Third-largest online store in China with US$13.8 billion in sales in 2023

Focus: High-quality branded products

Tmall is distinguished by its commitment to quality and authenticity, enforcing strict measures against counterfeit goods. While the platform has higher entry requirements—such as deposits and annual fees—it offers an ideal environment for established brands aiming to connect with discerning Chinese consumers. Selling on Tmall allows businesses to showcase their high-quality offerings effectively.

5. Vip.com (vip.com)

Market Share: Second-largest online store in China with US$15.5 billion in revenue in 2023

Focus: Flash sales, discounted branded goods

Vip.com operates on a model centered around deep discounts and limited-time offers, appealing particularly to budget-conscious shoppers. The platform’s investments in artificial intelligence enhance personalized shopping experiences for users. For brands looking to clear inventory or reach price-sensitive consumers, Vip.com provides an excellent avenue through its flash sale strategy and focus on fashion and beauty products.

 

Shipping your products

If you sell tangible products, you need to get them delivered into China but depending on the country you are in, this can be a challenge.

First of all you may have to pay import duties or settle VAT. There are certain thresholds for both of these charges, e.g. while importing in the EU you don’t have to pay import duties on any shipment worth less than € 150. 

There may also be non-financial bariers, like certifications or approvals to be obtained. Especially for food, cosmetics or medicine this may be the case. Check this in advance, even before you invest in your marketing.

VAlidate the HS-codes you use for shipping

Almost every country or trade block in the world has its own detailing on the international HS-code list. With our report you strongly reduce the risk on misclassifications, delays and higher custom duties than expected. 

Tell us what you want to ship and where to and we ask you all relevant questions to get to the most likely code.

Frequently asked questions

The best way to find an importer in China is to understand the sales channel for your product, and what parties are involved. Then find the right importers or wholesalers at the beginning of that chain. Before starting to push your product, approach a number of them to ask what they need. This way you can position your product better before you reach out to a broader group.
First check whether your product normally is sold through web shops in China or that other distribution structures are more common. Then determine the characteristics of your ideal web shop, and find a number of these, or outsource this search. When you approach the first few, you will learn what they find important and who your competitors are.
As in any country, convincing an importer or wholesaler to put your product in his assortment is difficult. Also in China importers look at the rotation of the product, how easy and often they can sell it, and multiply this with the margin they can make on it. The result should be higher than they earn now from any competing product. Only if you have proper sales data, for example from other countries, they will engage in a discussion with you.