Cross border e-commerce in China is a growing market, reaching $1.02 trillion in 2017. Mobile payments make up a large portion, with Alibaba and Ten Pay being major players. Shopping festivals drive sales higher. Cross-border retail e-commerce sales grew from $47.15 billion in 2016 to $57.9 billion in 2017. Setting up an online store on platforms like Tmall Global or JD Worldwide requires management and transaction fees as well as deposits that can range from thousands to hundreds of thousands of dollars. Promoting companies requires awareness of trends, intellectual property issues, and regulatory changes. The Israeli Foreign Trade Administration provides guidance and assistance to companies operating in China.

1. Cross border
e-commerce in China
Chaim Martin
Head of Economic Mission to Beijing

2. The commercial mission to China
Beijing
Embassy
Shanghai
Consulate
Hong Kong
Consulate
Guangzhou
Consulate
Chengdu
Consulate

3. Challenges
How to
register?
How to
protect?
Who is
the
contact
person?
How to
establish
a legal
entity?
What are
the
stages?
What are
the
standards
?
How to
export
• Business Delegations and Seminars
• Assistance in Locating Potential Partners, Costumers,
Distributers etc.
• Regulatory Booklets
• Attendance in Important Meetings
• Exhibitions and Fairs (Medica, CMEF, MedinIsrael etc.)
• Assistance in Dispute Settlements / Tenders etc.
What we do
• Business Information and Business Management in China
• Finding Services (IP, Law Firms, Consulting companies,
Due Diligence etc.)
• Assistance in Finding relevant investors

4. e-commerce in China
2017:
~1.02 Trillion USD

5. Mobile
“In the third quarter of 2017, China's mobile payment market grew 28% from a
year ago to $4.7 trillion, with Alibaba having a 53% share. Ten Pay followed
closely with its 40% market share…”
Forbes, March 2018

6. Main Players

7. Shopping festivals

8. Cross-border e-commerce
47.15
57.9
0
10
20
30
40
50
60
70
2016 2017
Cross-border retail e-commerce sales in China
2016-2017 (in billion USD)

9. Cross-border Vs. Domestic marketplaces
Domestic Cross-border
• Requires a legal entity within China • No legal entity required within China
• ~90% of user traffic • Growing rapidly
• Products (generally) need to have been
imported into China, meeting all
regulations and requirements
• Products can be imported as individual
parcels and bypass many requirements
• Usually easier to get preferred status
• Positive List poses huge risk

10. Israeli Companies in the Chinese
cross border e-commerce

11. The consumers

12. How to open an online store (Tmall)?

13. Kaola.com Tmall global JD worldwide
Transaction fee
5% - 7% 2% - 5% 2% - 5%
Management
fee
Negotiable
30,000-60,000RMB per
year
(4,370 – 8,740 USD)
1000 USD per month
Deposit
10,000 – 100,000 RMB
~(1,450 – 14,560 USD)
150,000 – 300,000
RMB
~(21,850 – 43,700
USD)
15,000-30,000 USD
How much does it cost?

14. Logistics

15. How to promote your company in the
cross border e-commerce market

16. Attention!
Unknown e-commerce
platforms
Suspicious buyers
Intellectual Property
infringements
Regulation changes
E-commerce platforms
trends
Returning goods

17. Intellectual Property in China

18. Foreign Trade Administration’s guidance booklets
‫ישות‬ ‫להקמת‬ ‫מדריך‬
‫בסין‬ ‫משפטית‬
Coming up this year!

19. Thank you
‫תודה‬
谢谢
Questions?