The pattern of China’s e-commerce market

Thanks to the developed logistics system, the Chinese e-commerce market has experienced astonishing growth in the past few decades. By 2023, China will account for 63% of the global online shopping market, estimated to be worth over $2 trillion. The comprehensive electronic payment services and powerful mobile terminal market have also expanded the market coverage to a wider range of customers.

Due to customer preferences, Chinese e-commerce platforms remain key players in the field of online shopping. According to a survey in 2023, only one foreign e-commerce company, Amazon, ranks among the top 15 e-commerce platforms in China. Therefore, using local platforms remains the most effective way to reach Chinese online shoppers for marketing and brand promotion.

Together with Simon, let’s take a look at how to register your online shopping platform account using a complete e-commerce solution to expand your market in China.

Legal requirements for selling products online in China

You may also know that when it comes to e-commerce, you often hear the term ICP certificate. This is a legal compliance requirement that you must consider when planning to engage in e-commerce.

ICP certificate (Internet content provider certificate) refers to the license that website or application operators in Chinese Mainland must obtain to legally provide Internet information services. The main purpose of the ICP certificate is to manage and supervise the operation of Internet content service providers.

In China, all entities or individuals providing website construction, operation, and content publishing services must apply for ICP records from relevant departments. According to the type of service, ICP record certificates are divided into two categories:

• • • Commercial ICP License: allows you to open commercial websites (usually e-commerce websites) in China. If you want to establish an e-commerce website (JD, Tmall, Taobao), you need to apply for a commercial ICP.
    • Non Commercial ICP License (ICP Record): A venue used solely for information purposes. This license does not include direct sales.

However, if your company only wants to sell products on platforms such as JD.com or TMall (without the need to establish a website), there is a solution. If your company is satisfied with selling products on a platform without a website, there is no need for ICP. Although it may not seem too complicated, registering for the International Comparison Program is not troublesome and can bring benefits.

The benefits of ICP filing

If you believe that ICP application can help establish a Chinese website, then you can use ICP application to establish a Chinese website. ICP application has the following advantages:

• • • Your website is unlikely to be blocked by China’s firewall as it is hosted in China itself.
    • Due to local hosting, Chinese website visitors will have a better experience as it will load faster.
    • Chinese search engines such as Baidu and Sogou (yes, Chinese users do not/cannot use Google) are more likely to rank lists of locally hosted websites.
    • The domain name ending in “. cn” enhances the credibility of local consumers compared to foreign hosting websites.
    • Local websites can publish applications on the local application store.

Other restrictions on obtaining an ICP license:

• • • Foreign companies without a local business license cannot apply for an ICP license
    • Registering for ICP takes approximately 2-4 weeks to obtain approval.
    • Registering an ICP license can only be done in Simplified Chinese, and the designated contact person on the website should be able to speak Mandarin

E-commerce platform sales

Tmall store registration

Tmall is the largest B2C platform in China, with over 500 million registered customers and more than 50000 merchants, accounting for more than 50% of China’s B2C e-commerce business. Tmall is the best choice for brands seeking to open official stores, especially when you have luxury brands or high-value products. For international companies, Tmall can become a useful e-commerce platform, helping them increase sales and promote their brands. Luxury brands can not only enter Tmall and Tmall Global, but also the Tiandian Luxury Exhibition Hall, which is an “application within an application” where top customers can access the highest end and luxury brands through dedicated flagship stores.

However, operating a Tmall store may be more expensive than other platforms, including:

• • • The deposit for Tmall flagship store is between 50000 and 100000 yuan
      In terms of technical services, you must pay 30000 to 60000 RMB annually
      Tmall’s sales commission can account for 0.5% to 10% of sales revenue (although in most cases it is around 2% and 5%)

JD store registration

JD.com is the largest self operated e-commerce enterprise in China. Compared to other e-commerce platforms, you can find everything on JD.com, with a focus on electronic devices. Unlike Alibaba’s Taobao and Tmall, it offers fulfillment services. JD has the most advanced fulfillment infrastructure among all Chinese e-commerce companies, allowing for same day delivery. If your company focuses on electronic product trading, JD.com may be your best choice because its large customer base has always been interested in digital devices.

The cost of opening a JD shore may include:

• • • Store deposit: 30000 yuan, 50000 yuan, or 100000 yuan, depending on the product category
      Technical fee: 500-1000 yuan per month
      Sales commission: 2% to 8% of sales revenue

Registration for Xiaohong Bookstore

Xiaohongshu has at least 200 million active users. On both desktop and mobile devices, Xiaohongshu community information is presented in a Pinterest style layout, allowing content to be distributed to more relevant clients. By combining video and live streaming functions, users can also share product reviews and text introductions of their travel destinations, during which they may become interested in the products or make purchases.

The cost of opening Xiaohongshu Coast may include:

• • • Store deposit: 20000 RMB for domestic companies, 3500 USD for international and overseas companies
    • Technical fee: 5% will be charged if the sales amount exceeds 10000 yuan

Social media sales

1. WeChat

WeChat is known as China’s’ all applications’. For China, WeChat is like Facebook WhatsApp、 Twitter, PayPal, and Amazon are the same for the rest of the world. Therefore, this will inevitably become an important component of your marketing strategy.

WeChat can create its own mobile website on the WeChat platform, with potential users exceeding 1 billion! More importantly, WeChat can also bring traffic back to your own website, creating more leads for your business and increasing brand awareness.

WeChat can also immediately contact brands by using a ‘service account’, allowing them to post official notifications and interact with potential customers. In terms of the ability of foreign companies to sell through WeChat, you must establish a wholly foreign-owned enterprise to fully utilize the advantages of WeChat.

2. Weibo

In short, Weibo is the Chinese version of Twitter. Weibo is a very intuitive entertainment and news platform, so in order to successfully gain popularity and brand recognition in China, your business must publish gripping content. Weibo’s user base is more utilized by young Chinese audiences, with over 50% of users under the age of 25

3.KOL

Key Opinion Leaders (KOLs) marketing is the Chinese version of “influence marketing” and is the key to reaching young target audiences. KOLs in China are usually Chinese celebrities and social media influencers who have a large following. More and more consumers tend to purchase products recognized or recommended by KOLs to filter out the large amount of information and advertisements played every day.

In China, the two most important platforms for KOL marketing are the main social media channels, WeChat and Weibo. However, there are several other industry-specific products.

KOLs on Weibo have high authority and high interaction with fans, making Weibo a powerful marketing platform. Weibo users can comment on and like the content of KOL posts, interact and participate to make their relationships meaningful, and have a significant impact on their purchasing decisions.

Due to the fact that the search function is still in its early stages, KOLs mainly publish information through official accounts, and WeChat still has a lot of untapped potential. That is to say, it is absolutely possible to reach more audiences through KOLs on WeChat, especially in popular B2C fields such as luxury goods and cosmetics.

Paid advertising

1.Baidu

Baidu is China’s Google, and millions of companies have successfully promoted their businesses on Baidu. Baidu’s marketing includes search marketing and content network marketing, which can reach over 700 million users, making it a huge potential audience for Chinese consumers.

As a foreign company, you can use paid advertising as an effective way to increase brand awareness and expand your influence in China. Although Google prioritizes organic search results, Baidu’s top search pages are filled with advertisements.

Register an online payment platform account

When operating an online store in China, you must have an online payment account to receive funds from customers. Let’s see which account is your best choice!

Alipay account registration

Today, Alipay is the largest independent third-party payment platform in Chinese Mainland. It is one of the mainstream payment methods in Chinese Mainland. Most people in Chinese Mainland have replaced Alipay with cash or credit cards. With 1.2 billion global users, Alipay is the world’s second largest mobile payment service provider. In addition, according to the statistics of the first quarter of 2020, Alipay accounted for 55.40% of the third-party payment market in Chinese Mainland, and showed a continuous growth trend.

What help can Simon provide you (approximately 5-7 working days):

• • • Guide the preparation of all necessary materials;
    • Alipay account registration;
    • Company information registration and bank account verification;

WeChat Pay account registration

WeChat Pay is a mobile payment and digital wallet service provided by WeChat in China, allowing users to make mobile payments and conduct online transactions. Users who provide bank account information can use the application to conduct various financial transactions, such as paying bills, shopping, transferring funds to other users, and even making in store payments when the store supports WeChat Pay. These services are provided by verified third-party entities called ‘official accounts’, which create mini programs or’ in app applications’ to provide specific functionalities. Users can link their Bank of China accounts through Visa, MasterCard, and JCB to achieve seamless transactions.

What help can Simon provide you (approximately 5-7 working days):

• • • Guide the preparation of all necessary materials;
    • WeChat Pay account registration;
    • Enterprise information registration and bank account verification;

Choose marketing and branding methods

WeChat

WeChat has over 1.2 billion active users and is the largest instant messaging application in China. In addition to social media and microblogging functions, it is also the most popular social media platform in China.

• • • An all-in-one platform with active user participation
    • Embedded leading CRM tool for real-time connection with customers

Tiktok

A rapidly developing short video platform with over 600 million daily active users. It has become a popular choice, especially among young people who can act as both content creators and audiences, which has sparked a popular trend in China.

• • • Young customer group with high purchasing power
    • Captivating short video content

The Little Red Book

Xiaohongshu is a user generated content platform that focuses on word-of-mouth advertising. The Chinese versions of Pinterest and Instagram are a safety net where users can share and read authentic product reviews, especially international luxury cosmetics. Considering the prevalent trend of counterfeit market in China, the in app e-commerce platform RED Store allows users to purchase trustworthy products.

• • • A trustworthy platform brings satisfactory sales
    • Seamless shopping experience on Xiaohongshu

Weibo

Weibo is the second largest social media platform in China, with over 550 million monthly active users. Weibo provides you with a wide range of advertising formats to choose from, including organic content marketing such as short videos, live streaming, and Weibo. You can also invest in paid advertising on Weibo.

• • • Promote omnichannel user experience
    • Search engine advertising is available

Why choose Simon?

Rapid Processing

With experienced team members, we can handle your project faster than others.

Unsuccessful, no charge

Simon promises that we will only charge after your project is successfully completed.

Tailored services

We will provide the most suitable business plan based on your situation.

Traceable process

Simon has an online system for you to track any updates to the project.

Frequently Asked Questions

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