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Cross-border E-commerce China

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Cross-border E-commerce China by US Department of Commerce

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Cross-border E-commerce China

  1. 1. Cross-border ecommerce - China January 2015 r U. S. Department of Commerce Brought to you by Global
  2. 2. Why is this important to you? -3” Some facts. .. US COMMERCIAL SERVICE l/ nital State: of/ lnwrica Dtpartrmvlt afC0mnu’rte ca Chinese consumers in 2014 are expected to spend $345 billion shopping online, surpassing all other countries including the world's current larget online retail market, the U. S. More than 315 million Chinese shop on the internet. That's 75 million more e-shoppers than there are in the U. S., double the number of online shopper in Japan, and six times the number in U. K. In 2013, 7% of all digital shoppers made cross-border purchases. (This represents $12.3 billion in 2013.) U. S. Department of Commerce . A 3 Source Tmall Global
  3. 3. What Chinese are buying online -iv Heahhy products/ food 2496 U. S. Department of Commerce 7- V‘ 2 . jMa. -rkets-. (15. C OZWWERCML SERVICE United Slata (If/ lnu'r1'a1 Dqmrfrnmt ufCbnmu*rce '6) Baby and beauty are currently the two largest product segments in the cross- border sales. 3C (China Compulsory Certification) products/ food have great market potential, and are expected to see rapid growth. Source Tmall Global 2014
  4. 4. What to ask! S. OMMERCIAL SERVICE Umted Stata 0 America Trademark registration in China I ”"""'“”” Define your China strategy | Payment/ logistics/ customs I I l U. S. Department of Commerce 919:; ;:2Markets
  5. 5. Cross-border ecommerce -Iv Portals Us-_ C OIWWERCIAL SERVICE United Stain of America "3 ‘ Dtparmlznt qfCmr1m(rct ‘ , www. kuo. iingtong. com www. kib2c. com § alga www. wgyp. com kffif E ffié www. tmall. com. hk §&'§ fly‘ www. cqkjs. com www. wtdex. com The above portals are for reference only. Rules that permit the use of other platforms, are unique to each city. U. S. Department of Commerce izlvlarkets
  6. 6. Cross-border ecommerce -3‘ Portals Us COMMERCIAL SERVICE United Sam 0 America “‘ Cross-border regulations are changing and Dwmw Emmi vary in each test zone. 0 5+2 cities currently enjoy these test policies 0 Each city has its different strengths and weaknesses 0 Currently, Ningbo and Hangzhou have the highest inbound sales volume 0 VIPshop has signed an agreement with the Guangzhou portal 0 Tmall Global has signed an agreement with the Hangzhou portal 0 Test zones being added monthly (Tianjin, Shenzhen, etc. ) 0 The Shanghai portal only uses their own payment and logistics company U. S. Department of Commerce C) 3 1.. . : zMarkets
  7. 7. _ . . I ~, _’ _ >7 _ -_, _‘i v_ . _ r_. _ r_. ‘ . _ _ ‘ ‘, ._r it ! :i»-FMS: It ', l ulf-3.» T—. ";. y I! l I! I If-!7l", lT—' Frivlw ‘mi Icilallc ; F‘, =.. I~: *l5~fil. I1g’l ~? 'r= .Ii: r- , . , , 3-l! l-f'l K! ) [I R» E Iim’ Required to be Bonded bNcf> sales ojrdetr prlod ugts, tlglargare warehouse e ore pro uc s a rea yin Ina _ arrive at the portal. through general (be| hU0- §‘-53 [Arrives in bulk] trade. [CIQ is required] See next page. Sales order already i Direct exist? heft? Pi°°1UT>tS No CIQ is (iihuo, $153 a'llYZ§dd. .Z. ‘Z‘3'f' required- Packaged] | i:§‘. LE ‘= lr, ‘l’= |,"i, l‘1lV= lll] . 'I! ‘7.‘r-II): ll| ,lll= l,(I(: .. j . , ’ . , ‘_ 7*. ‘-1 '/ i '1 '. Ql ; A‘. ,.L{; $. 'I‘. ‘(':
  8. 8. Cross-border eCommerce Comparison of different methods U. S. Department of Commerce C. /; ' - y; MaIkets: .32 (15. C OIWVIERCIAL SERVICE Utlitcd Stala qf/ lmeriaz nmem 0fCamm(rre Dr Cross-border eCommerce 1-2 weeks (direct) up to one week (bonded warehouse) Purchasing a o ent U. S. website 2-4 weeks 2-4 weeks Returns convenient Returns difficult Returns difficult U. S. price + logistics (high) agent fee (high) U. S. price + U. S. price + low shipping Unknown/ upon Unknown/ upon custom’s custom’s inspection inspection Lower duties
  9. 9. C 'oss-borcier eCommerce Ranges of eCommerce platform fees Refundable deposit fill? -7L. ‘§ 1‘? ‘E 3 —- ~'. ,-'L‘. l*§ 1,! Ill li 3 Annual rental fee 4}? -E'L, ,(Iil£l -- Cl_, .ClClCl Logisticl -" JYWI. warehouse charge Banking fee IJ. S. Department of Commerce ' ' "Markets €l‘—I, oI‘rlIl0fl-‘ aim gldoroflllo-It il '11-» -- il , .-? F5’I; -
  10. 10. Cross-border eCommerce Benefits ' COAIMERCIAL United Slant: 0 America Department a Commerce Exists in a rapidly changing landscape, that affords unique advantages, especially for products that require CIQ inspection. Ubs/ s ot: Commerpe, Globalllflarlle
  11. 11. Cross-border eCommerce Duty US. - C OIWWERCML SERVICE United States of America “I D¢partment afC0mmerre (EN 10% food, drink, shoes, boots, ] a", “ 20% textile, home electronics 1‘ 30% sportware, Golf tools Li‘ Gill/ lll RCIAL nayjci ‘ If the calculated duty is less than 50 RMB, no duty is charged. Value of each package is limited. (1,000 RMB - US; 800 RMB — HK, Taiwan and Macau) If the selling price for one item exceeds 1,000/800 RMB - this is OK. Multiple items in one package can not exceed 1,000/800 RMB. U. S. Department of Commerce C; 3 :2 2,. . Markets

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