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Since the beginning of the 20th century international trade has been a major driver of China's GDP growth. The liberalization of trade associated with free trade zones is now supported by the development of cross border ecommerce and online retailers business. There are some famous examples of Western online retail sites such as Amazon. China, however, is now a leading country in the field of online shopping development.
Today we have prepared a detailed article for you with an overview of the TOP 9 popular and working cross-border ecommerce online marketplaces in China for remote business. In this article, you will learn why cross-border ecommerce is one of the most convenient ways for global brands from other countries to do business in the world's second largest economy using the potential of today's largest ecommerce market.
Author: Alexander Sabantsev, China Digital Marketing Agency
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The benefits of working with Chinese customers through cross border e-commerce are a driver for any Chinese company to increase revenue, as leading e-commerce platforms and online shopping help to improve the connection between Chinese sellers and Chinese shoppers. Chinese shoppers are mostly online shoppers, as the average Chinese spends more than 5 hours a day on mobile services. Modern Chinese consumers consider online retail as the most convenient way to easily select goods from both Chinese businesses and international sellers, who in turn are interested in online sales as a way to reduce costs and benefit from the flash sales effect.
Nowadays, the cross-border Chinese ecommerce system allows foreign companies to conduct business activities through a global supply chain and enter China's complex market without having to establish a Chinese legal entity, open an account in a Chinese bank, and create a very expensive operational infrastructure such as opening an office, a warehouse, hiring employees, etc. In order to attract as many foreign brands as possible, most of China's major marketplaces, interested in increasing the number of third party sellers, have launched cross-border trading sections on their platforms in recent years.

Tmall Global

Founded in 2014, Tmall Global is a leading cross border China online marketplace and one of the fastest growing ecommerce platforms with a large market share among other online marketplaces in China which are engaged in international trade. This China marketplace is a special online platform for trading imported goods of the flagship Chinese online marketplace – Tmall owned by Alibaba Group. 800 million people are active Tmall users, and one in eight of them shop on Tmall Global. About 30% of the more than 100 million audience belong to Generation Z, the most active group of Chinese consumers on China market.
On the other hand, Tmall Global sells 35 000 international brands from over 90 countries through its online marketplace market. For 80% of them, Jack Ma's online marketplace has become the first sales channel in the Chinese market with one of the highest transaction volumes.
Such popularity of this China marketplace is explained by the fact that Tmall has never had a clear specialization in the sale of goods related to a very narrow product niche. As a result, Tmall Global generally attracts a wide variety of shoppers with a wide variety of needs. However, unlike Taobao mall which operates on the consumer-to-consumer model, Tmall is not an online marketplace for small businesses. Entry requirements are high for both domestic companies and international merchants. Chinese online marketplaces Tmall and Tmall Global are more attractive for global brands specializing in manufacturing high quality products, the probability of buying counterfeit products on one of the largest chain store in China is minimal. We should note that manufacturers of beauty and health products and light-weight snacks with medium and high margins should pay special attention to this platform.
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Home page (left), product card (center) and Tmall Global online store page (right)

Kaola

Kaola is another leading Chinese marketplace and is one of the largest online marketplaces engaged in cross-border ecommerce. The Kaola platform attracts over 30 million users with a 25% market share of all cross-border Chinese marketplaces trade transactions in China. The name of the Chinese marketplace (consonant with the word "koala") suggests that it was originally focused exclusively on Australian brands. But a little later, the scope of the Chinese online marketplace expanded to include the sale of imported goods from all over the world.
However, unlike Tmall and some other Chinese marketplaces, Kaola is positioned as a slightly more "prestigious" China online marketplace for the Chinese middle class whose representatives often go to the platform for shopping. The loyalty of this demanding group of consumers is ensured by a strict system of product selection and quality control. The online marketplace has even developed its own system that helps shoppers track the customs history of goods using QR codes. Thanks to this, users have no doubts about the authenticity of the goods sold. As a result, the brand's presence on Kaola increases its appeal in China.
The main product categories on the Chinese marketplace are infant formula and other children's products, snacks, health foods, cosmetics, apparel, accessories and home appliances.
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Home page (left), product card (center) and online store page (right)

J.D. Worldwide

JD Worldwide, the import section of another popular third party marketplace JD.com, is seen as an alternative to the top online marketplaces such as Tmall Global for exporters looking to generate revenue from cross-border trade.
JD has become a famous China marketplace for having the most developed system of its own warehouses and delivery of goods. The company is also trying to maintain its brand by working with foreign merchants. JD Worldwide has partnered with global (DHL) and regional (Australia Post and Yamato) logistics leaders. In addition, the Chinese online marketplace has 32 warehouses for cross-border trade. In January 2022, JD announced a partnership with western e-commerce giant Shopify. This allowed Shopify sellers to enter the Chinese market through JD with little to no effort.
As with Tmall, almost every conceivable category of B2C products is sold on the JD platform. However, manufacturers of goods for automobiles, home appliances and electronics should pay special attention to JD Worldwide. The majority of Chinese consumers look for such goods on JD, expecting the high quality approach and effective after sales services. Today, it is difficult to consider JD as one of the pure play marketplaces because its scope is quite broad.
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JD Worldwide home page (left), promotional offers section (center) and product card (right)

Duoduo International

The Pinduoduo marketplace (PDD) became a major Chinese ecommerce sensation in the second half of the 2010s due to two reasons. First, unlike other popular Chinese online marketplaces, Pinduoduo is a group shopping system that allows users to buy together at very deep discounts. The second is its focus on consumers from China's affluent hinterland. But it has also become a source of vulnerability in the e-commerce platform's business model. Although Pinduoduo's active users are on par with the market leader Tmall, the total sales of goods on the site are significantly lower than those on Alibaba's marketplace and some other Chinese online marketplaces.
In order to somehow solve this problem, Pinduoduo launched its own cross-border section - Duoduo International in 2019. As a newcomer in this business, PDD started to attract foreign brands with favorable conditions for entering the Chinese marketplace. Unlike other marketplaces, the owners of online stores on Duoduo International do not have to pay an annual service fee, and the registration deposit and order commission are noticeably lower than those of competitors.
However, cross-border from PDD has a significant drawback – the marketplace does not have its own warehouses and logistics solutions, so sellers have to deal with these issues themselves.
Pinduoduo is actively developing the trade of foreign cosmetics and perfumes. Taking into account the main audience of the site, we can recommend Duoduo International to manufacturers of conspicuous consumption products.
Pinduoduo home page (left), product card (center) and online store page (right)

Douyin Cross Border

Douyin, the Chinese twin brother of TikTok, has become a symbol of the convergence of social media and online retail in China. Douyin has many of the elements needed to succeed in e-commerce. On the one hand, it has the most engaging content formats – short videos watched by 900 million Chinese on various platforms, and live broadcasts, which became one of the main profit-making tools in Chinese online commerce in the 2010s. On the other hand, there are more than 600 million active users and an army of influencers who have earned the trust of their subscribers.
Therefore, in 2018, Douyin entered the e-commerce market, initially by actively collaborating with Alibaba marketplaces. Two years later, Douyin broke off its partnership with Tmall and built its own infrastructure to provide full-cycle in-app trading. And in 2021, it began to attract foreign brands for cross-border trade.
On the whole, cross-border trading on Douyin is still in the early stages of development, which allows even small-brand product sellers to carve out a significant niche on the platform. However, when choosing which products to display and how to promote them, it is very important to remember that Douyin is the territory of wealthy Gen Z consumers.
Video (left), product search (center) and online store page (right) on Douyin

Kuaishou Cross Border

Kuaishou, with its 400 million viewers, is often metaphorically called "TikTok for the Chinese village". The majority of its users are young residents of provincial cities who prefer to watch short videos about people similar to themselves, rather than about the daily lives of rich KOLs.
Although Kuaishou is still playing catch-up with Douyin, the social network began to engage in e-commerce much earlier than its main competitor. As a result, about 20% of the company's revenue now comes from e-commerce (while Douyin still relies mainly on advertising revenue).
But at the same time, like Douyin, Kuaishou only announced the start of its cross-border business last year. Therefore, this part of Kuaishou's business is still in its infancy, which may be even more beneficial for exporters - the platform will offer more favorable cooperation terms and additional services at this stage. However, it is not so easy to get on Kuaishou now - the site only accepts manufacturers of cosmetics, food, watches and luxury goods, and then only by invitation from Kuaishou itself.
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Video (left), online store page (center) and product card (right) on Kuaishou

VIP International

VIP.com is one of the oldest Chinese marketplaces, as well as the world's largest flash-sale marketplace (the main method of sales on it is discount offers that are valid for no more than 24 hours). The products that are sold on this Chinese marketplace are mainly related to the fashion industry – clothes, shoes, cosmetics, etc.
While VIP.com is no match for the largest marketplaces in China's overall e-commerce market, its cross-border division, VIP International, is among the market leaders, accounting for approximately 10% of China's cross-border B2C commerce.
Buying popular brands at low prices is what its users come to the platform for. Therefore, unless you are a world famous brand, VIP.com is unlikely to be your first sales channel in China.
VIP.com main page (left), product card (center) and online store page (right)

Little Red Book Cross-Border

If Douyin and Kuaishou are Chinese versions of TikTok, then Little Red Book (or simply RED) can be loosely described as the local Instagram. On this platform, ordinary users and influencers talk about their lifestyles and write reviews on the products they use (mostly these are clothes, cosmetics, skin care products). Other users can purchase the products shown in the photos with just a few clicks. This can be done both in stores within the application and by clicking on links to third-party marketplaces (for example, Tmall). In this way, a business account on Little Red Book can serve two functions at once – an independent sales channel and a tool for promoting products on other platforms.
It is worth noting that RED has a very unusual demographic profile – about 90% of the platform's 100 million audience are women.
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Little Red Book home page (left), shopping section (center), and product card (right)

Suning Global

Suning was originally known in China as a large offline retailer of various electronics. Later, it began to expand both in terms of the breadth of the range of goods in various categories, and in terms of its presence on the Chinese Internet. One step in Suning's e-commerce push was to attract cross-border brands from overseas.
However, Suning is not only waiting for brands of foreign electronic equipment to enter its marketplace. The company writes on its website that it primarily would like to see foreign manufacturers of baby food, cosmetics, shoes, bags and food products on its platform. In addition, while other major e-commerce platforms prefer to deal with brands that have not yet entered the Chinese market, Suning explicitly states that brands that are already listed on Tmall or JD are more likely to open an online store.
To date, Suning is the least significant of the major players, with its marketplace accounting for approximately 1.5% of the total cross-border market in China.
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Home page (left), product card (center) and online store page (right)

Conclusions

Today, more than 1400 categories of various products can be exported to China through cross-border channels (a complete list of these categories can be found at the link – a document in Chinese). Today cross-border ecommerce gives numerous opportunities to purchase inventory directly, buy consumer products from foreign brands, etc.
You can open your own cross-border online store on a dozen Chinese platforms and become a successful online retailer. Some of them are traditional marketplaces, while others are social networks with e-commerce features. But despite the differences, their requirements for exporters are similar:
● Entity registered outside of China
● Foreign registered trademark
● Statement from a foreign bank account
● Copy of passport of company's representative
● Payment of a refundable deposit (from $1.5 thousand on Pinduoduo to $10-47 thousand dollars on Tmall, depending on the category)
● Payment of an annual service fee (from $1 thousand for JD to $4.7-9.4 thousand for Tmall)
● Platform commission on orders (from 0.6% on Pinduoduo to 2-10% on Kaola)
Trading through cross-border makes it much easier to do business in China. The absence of the need to open a legal entity and a bank account in China helps reduce the risks of entering an unfamiliar market. Thus, small brands have the opportunity to test the demand for their products in China or prove to investors that they are promising without large initial investments.
China is closer than you think.

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