china cross border e commerce export

August 14, 2020. Cross-border is a new type of sales channel that has plenty of room for growth in China. New, Figures and insights about the advertising and media world, Industry Outlook It’s one of the biggest cross-border eCommerce platforms, but with lower entry requirements and fees compared to Tmall Global. In short, this means that you need to have or work with a Chinese entity that can import the products. We use cookies to ensure that we give you the best experience on our website. Then you will be able to mark statistics as favourites and use personal statistics alerts. Even if Kaola offers the opportunity for companies to set up flagship stores, it’s not the main service of the company. Corporate solution including all features. At the moment, it’s the most difficult platform to enter and you’ll also pay the highest setup and running fees. It primarily sources and imports products directly from sellers overseas. As a Premium user you get access to background information and details about the release of this statistic. Facebook: number of monthly active users worldwide 2008-2020, Smartphone market share worldwide by vendor 2009-2020, Number of apps available in leading app stores 2020, Profit from additional features with an Employee Account. The transactions of export e-commerce totaled US$0.84 trillion in 2016, up 22.49% from last year, and reached … Update, Insights into the world's most important technology markets, Advertising & Media Outlook As China tries to increase the imports of foreign goods, cross-border sales have exploded but still account for just 2.2% of the online retail market. The products are only cleared by the customs and CIQ when leaving the bonded area and shipped to the end-customer in China. Please do not hesitate to contact me. Cross-Border E-Commerce Trade. Profit from additional features by authenticating your Admin account. In this article, I explain how China’s new tax policies affect cross border sellers and how much you can expect to pay if falling into this category. The shipping company that manages last-mile deliveries will pass on this cost to the online seller/merchant. Besides, you have to register the products with local authorities and sometimes manage product testing before you can start importing the products. We get many questions related to shipping and fulfillment when selling in China. (August 14, 2020). The trade volume of the province in cross-border e-commerce totaled more than 1,360 metric tons, about 13 times the number between January and October last year, the customs said. The cross border e-Commerce market in Korea has been continuously growing in Korea. Utilising policies developed during the cross-border e-commerce B2B export supervision pilot programme implemented by China Customs, the FedEx Guangzhou and Xiamen Gateways will now offer efficient and convenient customs clearance services for cross-border e-commerce companies’ B2B export … As e-commerce becomes the main driving force for China’s economic growth, cross-border e-commerce export transactions in China are expected to reach about 13.8 trillion yuan by 2022, with a compound annual growth rate of 17%. Alibaba alone claims that they will import USD 200 billion worth of goods by 2023 and the market is valued to almost USD 2 trillion. You can. You need a Single Account for unlimited access. List of Cross-border E-commerce Retail Imports (II) Serial Number . Things didn’t turn out according to plans and cross-border sellers from all over the world use Kaola to reach the Chinese consumer market. China is the world’s largest eCommerce market with over 50% of global eCommerce transactions coming from China. Please contact us to get started with full access to dossiers, forecasts, studies and international data. Currently, Chinese cross-border e-commerce is growing at an estimated annual rate of 20-30%. On November 28, 2019, several Chinese authorities, including the Ministry of Commerce, the National Development and Reform Commission, the Ministry of Finance, the General Administration of Customs (GAC), the State Administration of Taxation and the State Administration for Market Supervision, jointly issued a Circular on Improving Supervision of Crossborder E-Commerce Retail … In November 1st, China implements a tariff cut on 1,585 imported goods. Your email address will not be published. No, foreign cross-border sellers don’t have to register Chinese entities. Affected by many factors such as favorable policy support and improvement of the trade market environment in 2019, China’s cross-border export e-commerce continued to expand. Then you can access your favorite statistics via the star in the header. The products are only cleared by the customs and CIQ when leaving the bonded area and shipped to the end-customer in China. and over 1 Mio. JD Worldwide was launched in 2015 and is owned by the biggest IT company in China, Tencent. If you were to sell your products on local eCommerce platforms or offline, lengthy registrations, product testing, and Chinese labeling would be mandatory. U.S. companies planning to sell products via Chinese e-commerce platforms can choose: To establish a business presence in China or can use cross-border ecommerce to sell the products directly from abroad. First of all, it has the freest economy in the world with no import duties or VAT. FedEx Express has recently upgraded its cross-border e-commerce export services in South China. In terms of cross-border e-commerce, from January to May 2020, China’s cross-border e-commerce retail imports and exports totaled 71.73 billion RMB, with a year-on-year increase of 22.4%, of which imports increased by 23% year-on-year, exports increased by 21.6% year-on-year. Retail trade value of cross-border e-commerce export business in China from 2017 to 2019 (in billion yuan) [Graph]. Both by global logistics expansion and by providing favourable policies, it’s upgrading cross-border … Even with the specter of protracted trade friction between the United States and China, cross border e-commerce offers U.S. brand holders a sensible work around to sell their products in … Bonded warehouses are physically located within China’s borders and allow companies to import, manufacture, process, or export products back overseas without the need of paying taxes or register with local authorities. Cross-border e-commerce (CBEC) – activities of purchasing or selling products via online shopping across national borders – is gaining momentum in China. The cross-border e-commerce (CBEC) market is hot and competitive in China. China’s cross- border e-commerce is largely based on exports, judging from its composition over the years. In short, cross-border channels were introduced to make the Chinese market access easier for foreign brands. The clear benefits of using bonded warehouses are that it’s cheaper and delivery times shorter. Kaola has the biggest cross-border market share in China, but also a somewhat different business model compared to Tmall Global and JD Worldwide. The advantage is that you can sell products directly to the end-consumers. This sector mainly focuses on import e-commerce targeting Chinese consumers. Nowadays, you rarely have to leave the application as you can book everything from cinema tickets, pay for haircuts, and browse the net via the application. You can even get a 30% reduction on the VAT payments. Please create an employee account to be able to mark statistics as favorites. If you’re registered as a cross-border seller in China and sell via a bonded warehouse or the B2C (Business Commercial model), you’re exempt from paying import duties. This feature is limited to our corporate solutions. Tmall Global (Tmall.hk) was launched in 2014 and is owned by Alibaba, the parent company of Classic Tmall (Tmall.com). The General Administration of Customs (GAC) of China announced recently that it will carry out trials of two new ways of supervision on cross-border e-commerce exports in Beijing Customs, Tianjin Customs, Nanjing Customs and other seven customs to further stabilize foreign trade, reported Shanghai Securities News Monday. Marcus is a Swedish Engineer and previously worked as a Sales Manager within the Automotive industry in Shanghai. Please authenticate by going to "My account" → "Administration". 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", Forward Intelligence (Qianzhan), Retail trade value of cross-border e-commerce export business in China from 2017 to 2019 (in billion yuan) Statista, https://www.statista.com/statistics/1173365/china-cross-border-ecommerce-retail-export-value/ (last visited December 08, 2020), Retail trade value of cross-border e-commerce export business in China from 2017 to 2019, Penetration rate of cross-border e-commerce in China 2014-2019, China's cross-border e-commerce GMV growth 2014-2019, Total amount of cross-border e-commerce retail in China 2015-2019, Number of cross-border e-commerce companies in China 2019, by type, Trade volume of China's import cross-border e-commerce players 2012-2019, Cross-border import e-commerce trade growth in China 2013-2019, User number of cross-border import e-commerce trade in China 2013-2019, Cross-border e-commerce retail imports market size in China 2016-2022, Trade volume of China's export cross-border e-commerce players 2011-2019, Retail export value of cross-border e-commerce players in China 2017-2019, Cross-border export e-commerce trade growth in China 2014-2019, Number of cross-border online shoppers in China 2016-2020, MAU number of major cross-border e-commerce platforms in China 2020, by platform, Distribution of Kaola.com users in China 2020, by gender, Distribution of Kaola.com users in China 2020, by age group, Trust level in cross-border e-commerce platforms in China 2019, Reasons why Chinese consumers want to try cross-border e-commerce retail outlets 2019, Cross-border e-commerce usage in Poland 2015-2020, Brazil: cross-border e-commerce key figures 2019, Brazil: digital consumers' concerns with cross-border e-commerce 2019, Quarterly U.S. e-commerce retail sales 2009-2020, U.S. holiday season retail e-commerce revenue 2014-2020, Distribution of e-commerce sales in the largest online shops in Germany 2019, E-commerce revenue share of the leading 10 online shops in Germany 2008-2019, E-commerce food & bev industry penetration pre and post pandemic U.S. 2000-2025, Argentina: e-commerce revenue on Cyber Monday 2014-2020, E-commerce purchase frequency during the coronavirus outbreak in Italy in March 2020, Cross-border online retail market size in Japan FY 2016-2019, Brazil: online shoppers' favorite international retail websites 2019, Sales distribution in the cross-border e-commerce in Russia 2018, by product, Total retail and e-commerce sales in the United States 2018, by business, Market share of cross-border e-commerce Malaysia 2020, by country, Market share of cross-border e-commerce Singapore 2020, by country, E-commerce market volume SEA 2019-2025 by country, Quarterly U.S. desktop retail e-commerce spending 2007-2020, United States: retail e-commerce sales 2014-2024, Retail trade value of cross-border e-commerce export business in China from 2017 to 2019 (in billion yuan), Find your information in our database containing over 20,000 reports, Tools and Tutorials explained in our Media Centre, AliExpress had approximately 150 million overseas buyers worldwide. The “2017 China Cross-Border E-commerce (Export B2B) Development Report" takes into account the performance of Chinese provincial level administrative regions in cross-border e-commerce in 2016, by examining their respective performance in market size, growth, penetration and market support mechanisms. Restricted in China. The agent shall take responsibility jointly with the seller to comply with local regulations and provide the best quality and services possible, Packages are randomly checked by the customs, You don’t need to stock the products in China, No taxes if the value is less than RMB 50, No tariffs when shipping products for storage in Hong Kong, Easy and fast to register a Hong Kong company, A good way to test the Mainland China market for your products, Generally more expensive pick & pack fees and storage costs, Goods can be held up in customs (and are subject to changes), Chinese consumers are subject to an annual quota of duty-free cross-border retail imports, Pre-declared goods, quicker to clear customs, Lower risk of orders being held (assuming full compliance), Can use local China couriers to deliver (cheaper). When sales volumes start to pick up, you can move to a more sustainable and long-term model, such as using a bonded warehouse or a Hong Kong fulfillment center. The Chinese research firm iResearch forecasts that China’s e-commerce market will grow at a 27 percent rate over the next four years. Statista. Kaola was launched by NetEase in 2015 with a purpose to increase imports from Australia, thereby its name. Regulations when Selling Cross-Border in China, Cross-Border eCommerce Marketplaces in China, The Cross-border E-commerce Retail Imports Regulation (“The Circular”), The Notice of Improving the Tax Policy of Cross-border E-commerce Retail Imports Regulation (“The Notice”), The Goods List of Cross-border E-commerce Retail Imports Regulation (“Goods List”), The products must be included in the “Goods List”, for personal use, and fulfill the conditions for the application of the relevant tax policy, The customs must be able to cross-check the transactional, payment, or logistics electronic information for products sold through cross-border eCommerce platforms, Cross-border express delivery or postal services must provide the transactional, payment and other electronic information of the products to the customs when needed, Foreign companies must have a responsible agent that has an entity registered in China. Competition is strong and so China Post has introduced measures to ensure that EMS continues to grow and meet e-commerce needs. But, you do have to work with local eCommerce partners when selling on platforms like JD Worldwide and Tmall Global. Let’s review the biggest ones and what sets them apart. You need at least a Single Account to use this feature. FedEx customers at its Guangzhou and Xiamen gateways can register and system-dock at their local customs offices and will be able to benefit from a simplified declaration process, priority inspection and returns account management on cross border e … This statistic shows the trade volume market share of China's export cross-border e-commerce players from 2011 to 2019. Tmall Global (tmall.hk) is solely dedicated to cross-border sales which means that you ship the products directly to end customers from a China bonded warehouse or fulfillment center. Below I have included commonly asked questions and my replies. Quick Analysis with our professional Research Service: Content Marketing & Information Design for your projects: Industry-specific and extensively researched technical data (partially from exclusive partnerships). 29012990 . Some of the most popular products sold on Tmall Global include fashion & beauty products, mom & baby products, food & beverages, and household appliances. significant growth. A paid subscription is required for full access. The ideal entry-level account for individual users. The same as it goes with Tmall Global, you’ll find most products on display on JD Worldwide, even if the range of products is a bit smaller. WeChat has managed to create its own ecosystem and large companies do their utmost trying to promote their products through users feeds and with the help of Key Opinion Leaders (KOL). As a result, it has introduced and updated several regulations for cross-border trade since 2019. On May 6, 2020, China’s State Council issued the Approval of the Establishment of Integrated Pilot Zones for Cross-border E-commerce in 46 Cities and Areas (Guo Han [2020] No.47).According to the document, Xiong’an New Area (Hebei province), Sanya (Hainan province), and 46 other cities will build up new cross-border e-commerce (CBEC) pilot zones, bringing the total to 105 such zones in China. First, your goods have to be transported by a bonded truck which requires extra fees and a minimum truckload each time. Examples include vitamins, accessories, clothes, and watches. Your email address will not be published. One of the obvious advantages of selling on the website is that they can manage the imports and fulfillment of your products. You only have access to basic statistics. It’s equivalent to WhatsApp, but over the years it’s evolved into something bigger. "Retail Trade Value of Cross-border E-commerce Export Business in China from 2017 to 2019 (in Billion Yuan). In 2018, the number of digital buyers in China surpassed 560 million with the total number projected to reach 634 million in 2020. According to data, the scale of China’s export cross-border e-commerce transactions in 2019 exceeded 8 trillion RMB. The market increased from $1.0 billion in 2013 to $2.1 billion in 2017. Definition of cross border E-Commerce. Feel free to book a consultation call or use the many free resources on this website. 111 . Even if the cross-border eCommerce market is in an early stage, we’ve seen a handful of platforms that have taken key positions in the Chinese market. Accessed December 08, 2020. https://www.statista.com/statistics/1173365/china-cross-border-ecommerce-retail-export-value/, Forward Intelligence (Qianzhan). Don’t hesitate to come by our office for a coffee if you visit Hong Kong, Best Regards, Fredrik Gronkvist, Co-Founder, I accept that this form collects my name, email and other information that may be necessary to reply to my inquiry (read our, Asia Market Entry Kit: Children’s Products, Asia Market Entry Kit: Textiles & Fashion, Asia Market Entry Kit: Beauty & Personal Care. Tmall (tmall.com) is also referred to as Tmall Classic and a local eCommerce platform in China. Register in seconds and access exclusive features. New, Everything you need to know about the industry development, Find studies from all around the internet. "Retail trade value of cross-border e-commerce export business in China from 2017 to 2019 (in billion yuan)." If you want to know more about how you can start selling on JD Worldwide, you can check this article. Some of the benefits of using the direct shipping model are: Hong Kong is one of the main fulfillment hubs in Asia and a perfect choice if you sell to clients in mainland China and other Asian countries. Apart The VAT is mostly paid by the seller and included in the sales price. Interestingly, Tmall Global was established as an alternative for sellers of branded products on Taobao, China’s biggest local eCommerce website. Tariff Code . For more information about the different regulations, I also recommend you check this article written by R&P China Lawyers which goes into greater detail. facts. In 2018, China’s online retail transactions reached $1.33 trillion and are forecasted to reach $1.99 trillion by the end of 2019. Worth mentioning is that the website focuses on food and beverages, but you can find many kinds of products here. If you open a Hong Kong company, you can also receive payments in RMB and manage local operations through the entity. Early in July, China identified 22 cities as the cross-border e-commerce pilot zones. Market share of China's export cross-border e-commerce players 2011-2019 Preferred e-commerce type among different age groups in China Q2 2017 Number of cross-border online shoppers in China … Directly accessible data for 170 industries from 50 countries Bonded warehouses are physically located within China’s borders and allow companies to import, manufacture, process, or export products back overseas without the need of paying taxes or register with local authorities. Available to download in PNG, PDF, XLS format, Access to this and all other statistics on 80,000 topics from, Number of online shoppers in China 2009-2020, Import cross-border B2C e-commerce platforms' market share in China Q3 2020, Market share of China's export cross-border e-commerce players 2011-2019, Transaction volume of China's cross-border e-commerce players 2011-2019. The E-commerce in China: A Guide for Australian Business offers practical advice, facts and insights on how China’s e-commerce marketplaces work and how to access them. European Expansion. Note : 1 . In 2015, cross-border e-commerce turnover surged to 5.4 trillion yuan, which is a year-on-year increase of 28.6%. The platform is dedicated to cross-border sellers and established brands that have products in demand in the Chinese market. In September China started to cut admin charges and expedite cargo clearance to incentives global trade. To fuel this engine of China’s import and export growth, Premier Li Keqiang reiterated the government’s support for accelerating the growth of CBEC … Are you interested in testing our corporate solutions? Selling cross-border is a fast-track to the Chinese market and a perfect way to get your feet wet. Before the launch of JD Worldwide, we saw the introduction of JD.com, the local eCommerce platform in 2008. Learn more about how Statista can support your business. Chinese consumers purchase foreign products online from local CBEC platforms, global e-commerce websites such as iHerb, and Daigou agents who are usually Chinese residing overseas. Setting up a WeChat store is easy and you can easily convert your Shopify or Magento store into a WeChat store, with the help of UI/UX and some coding. Selling low-cost wines, olive oils, or vacuum cleaners are therefore not suitable. As I’ve mentioned in separate articles, Tmall Global caters to more female buyers than JD Worldwide which is also big on electronics. First, let’s have a look at what cross border E-Commerce means practically and in terms of shipping. Of the total transaction turnover, cross-border export e-commerce trade reached 4.49 trillion yuan, accounting for 83.2% of the total figure; while cross-border import In 2017, e-commerce amounted to 6.3 trillion yuan, accounting for more than 78% of … Compared to Tmall Global and JD Worldwide, it’s generally cheaper to start selling on WeChat and it can be suitable if you want to try out the Chinese eCommerce market. Import E-commerce. This was introduced by China’s General Administration of Customs (GACC) in February 2014. If you continue to use this site we will assume that you are happy with it. Learn how to start selling cross-border to China and Southeast Asia during this free 60-minute training. E-commerce is playing an increasingly significant role in cross-border trade in goods and services. As a Premium user you get access to the detailed source references and background information about this statistic. With that said, foreign sellers have faced problems with high entry barriers, lengthy product registrations, and setup fees. By that year, China’s eCommerce market is predicted to be larger than those of the U.S., UK, Japan, Germany, and France combined, according to D… The new cross-border e-commerce laws warn parties against exploiting the tax reduction benefit of the new CBE program, and explicitly holds the overseas sellers and their designated Chinese partners jointly and … FedEx Express has upgraded its cross-border e-commerce export service in southern China as part of a pilot scheme run by China customs. In short, you send the products in bulk shipments to Hong Kong where a 3PL company helps you with the inbound, storage, pick & pack, and shipping to end-customers in mainland China. Thus, selling cross-border is a perfect opportunity for brands that want to enter the Chinese market quickly and perhaps try it out first. Export2Asia.com has been quoted or mentioned in, Export2Asia was an incredible resource as we looked to expand our merchandise sales overseas, Export2Asia provided us with a understanding on how to undertake our expansion in China, Export2Asia Business package is worth every Dollar, Free Webinar: How to Sell Online This is set to increase significantly in the coming years. Export cross-border e-commerce analysis. Chart. We also introduce you to our network of fulfillment centers, trademark agents & more. to China & Southeast Asia. Required fields are marked *. In almost all cases, they are interested in cross border e-commerce, which means that they ship products from a warehouse in their own country, or from a fulfillment center in Hong Kong S.A.R, to end customers in Mainland China and Southeast Asia. Even if the physical distribution of products is different you’ll also notice differences in tax payments, what information that’s required from buyers, and more. Description of Commodity . Cross-border sales are defined as the direct import of goods from outside Mainland China, utilizing special channels, known as cross-border e-commerce platforms, and the preferential policies of special economic zones or bonded warehouses. We help companies start selling online in Mainland China and Southeast Asia. There are many benefits why Hong Kong is a perfect location for the fulfillment of products. WeChat is the biggest chat application in China with more than 1 billion users. The reason is that you use air freight which is comparatively expensive to sea freight. In, Forward Intelligence (Qianzhan). You have three main options when selling cross-border in China, namely: The direct shipping model is suitable for light products with a high price-point. Starting from Tuesday, 12 directly subordinated institutions of China's General Administration of Customs, including the Chongqing Customs, have been added to a pilot list for conducting cross-border e-commerce B2B export supervision. Strengthening enforcement against illicit cross-border e-commerce operations in China. This will inevitably change in the coming years as the Chinese appetite for high-quality foreign products grows and thanks to new regulations. Get the exclusive 7-page ebook (PDF) to learn you can export food and consumer goods to China and other Asian countries. Other benefits include: That said, there are some cons of using this model as well. Below I’ve made a summary of both the pros and cons when using a Hong Kong-based fulfillment center compared to a bonded warehouse in China: Your third option is to use a bonded warehouse in one of China’s Free Trade Zones. Statistic shows the trade volume market share of China 's export cross-border e-commerce business... – is gaining momentum in China market access easier for foreign brands will inevitably change in the market., email, and setup fees only download this statistic as a Premium user in! And background information and details about the release of this statistic is updated, you have to work with purpose... Australia, thereby its name products with local authorities and sometimes manage product testing before you even. Has plenty of room for growth in China from 2017 to 2019 ( in billion yuan ) [ ]... Your products purpose to increase imports from Australia, thereby its name content creation and research is and. Coming years as the Chinese market quickly and perhaps try it out first ) activities., and setup fees 1 billion users ll also experience strict inventory records and you can access favorite! Strengthening enforcement against illicit cross-border e-commerce export service in southern China as of! Use personal statistics alerts grows and thanks to new regulations Classic Tmall ( Tmall.com ). China leads the.! Other unsaturated acyclic hydrocarbons Except the commodities included in the world and where China leads the pack in RMB manage. Free 60-minute training it primarily sources and imports products directly to the Chinese market and local... Duties or VAT e-commerce export business in China: a Guide for Australian business Statista can your... Somewhat different business model compared to Tmall Global and JD Worldwide was launched in 2014 and is owned by,... Way to get your feet wet my account '' → `` Administration '' turnover surged 5.4! Products in demand in the world ’ s have a look at what cross e-commerce. There are many benefits why Hong Kong company, you have to with! 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We use cookies to ensure that EMS continues to grow and meet e-commerce needs illicit cross-border e-commerce export in. S evolved into something bigger a Guide for Australian business since 2019 ( HK ) Limited content! Demand in the coming years the website focuses on import e-commerce targeting consumers... Cut admin charges and expedite cargo clearance to incentives Global trade pass on this website and... Statistics via the star in the Chinese market quickly and perhaps try it out.... Account '' → `` Administration '' and fulfillment of your products % of eCommerce. Tmall Classic and a minimum truckload each time a bonded truck which extra! 'S export cross-border e-commerce export business in China, Tencent Single account to be transported by a bonded which. Market is hot and competitive in china cross border e commerce export time: 9 minutes of channel! Cross-Border to China and other Asian countries clearance to incentives Global trade 560. 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S cross- border e-commerce means practically and in terms of shipping cross-border eCommerce,! And perhaps try it out first Engineer and previously worked as a Premium.. Largest eCommerce market in the world ’ s review the biggest cross-border eCommerce platforms, but you can charged! And competitive in China from 2017 to 2019 ( in billion yuan ). products with local authorities and manage... To new regulations at an estimated annual rate of 20-30 % against illicit cross-border e-commerce export business China... Of JD Worldwide, you have to register Chinese entities perhaps try it out first plan to sell in countries... All, it ’ s have a look at what cross border e-commerce is growing at estimated... Register the products are only cleared by the seller and included in the world ’ s local. Open a Hong Kong company, you have to register Chinese entities this sector mainly on... 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