Cross border e-commerce China

7 Best Cross-Border E-Commerce Platforms in China

China is the biggest e-commerce market in the world by a huge margin, with impressive annual sales of $1.25 trillion in 2023 alone. This tremendous success was partly thanks to the rapid development of cross-border online shopping channels within the country. 

Chinese consumers are increasingly turning to international brands, drawn by the variety and perceived quality of foreign goods. The convenience of these platforms makes it easier than ever for them to buy products from around the globe.

For brands looking to tap into this market, understanding key trends and consumer behaviors is crucial. This article will explore the latest insights into cross-border e-commerce in China.

 

What is Cross Border E-Commerce in China?

True to its name, this industry mainly deals with foreign trade or any international sale between Chinese consumers and brands in an online marketplace platform. These Chinese cross-border business transactions fall into four categories, each catering to unique stakeholders and market dynamics:

 

Types of Cross-Border E-Commerce Platforms in China

 

  • B2C (Business to Consumer)

In the B2C segment, businesses, whether retailers or brands, engage directly with individual Chinese consumers.

 

  • B2B (Business to Business)

The B2B domain revolves around trade interactions between businesses, often involving brands or wholesalers as the key players.

 

  • C2C (Customer to Customer)

A more informal facet of cross-border e-commerce, C2C transactions involve direct individual trade.

 

  • D2C (Direct to Consumer)

D2C channels allow brands to forge direct connections with consumers in China on whichever platform they choose, eliminating intermediaries and traditional distribution channels.

 

With the creation of this landscape, cross-border logistics allow e-commerce imports into a free trade zone (typically in Shanghai). Then, these imported goods are shipped to mainland China. 

Delivery procedures can be done through direct shipping or warehouses in the free trade zones. Cross-border online shoppers pay the required fees, like VAT and delivery. 

Meanwhile, Chinese sellers are solely responsible for retail pricing, marketing and general administration expenses, and profit margins.  

 

How big is the cross-border e-commerce market in China?

Foreign brands interested in tapping into the Chinese market don’t need a domestic business license or a physical store to participate in cross-border e-commerce trade in China. 

Thanks to this, companies from other Asian nations, like Japan and South Korea, are known to make the most cross-border purchases from local consumers. 

With the ease of cross-border trading policies, the world’s fastest-growing retailers from the United States are also the leading source of foreign products directly sold to Chinese customers.

 

China Imports By Country - 2023

Source: Trading Economics (China Imports By Country – 2023)

 

After the Chinese government released revised regulations about customs clearance and other trade specifications, the average single transactions increased from 2,000 RMB (291 USD) to 5,000 RMB (727 USD). According to reports in 2023, the country’s e-commerce imports and exports grew to 16.77 trillion yuan ($2.36 trillion).

As cross-border purchases increased gradually over the years, the streamlined customs procedures and tax rebates expanded from 15 to 37 cities. If you’ll notice, it now includes major metropolitan centers like Beijing and Shanghai. The variation in imported goods coming in and out of the market also saw the addition of new product categories, from fashion and beauty industries to health and fitness equipment.

 

How to do Cross-Border E-commerce in China?

 

●     Existing Cross-Border E-Commerce Platforms

It’s not a secret that many international businesses successfully entered the Chinese market through established cross-border e-commerce platforms. They provide a gateway to millions of Chinese consumers but come with high fees (e.g., platform commissions, deposits, and logistics costs) and fierce competition. 

A strong digital marketing strategy is essential to stand out, such as niche audience targeting, SEO optimization, and leveraging social media-centric marketing channels like WeChat, Xiaohongshu, and Douyin.

 

Popular Cross-Border E-Commerce Platforms in China

 

The competitive environment in these platforms means that simply listing products is not enough. You must build brand awareness, engage with Chinese customers, and differentiate your products from other brands. 

While challenging, the vast customer base and growing demand for foreign goods present significant opportunities for well-prepared brands.

 

●      Customized WebShop

Building a dedicated cross-border e-commerce website tailored to Chinese consumers gives you greater control over branding, customer experience, and costs

This option requires significant investment in website localization (such as language, cultural preferences, and payment methods), integration with Chinese social media platforms, and compliance with Chinese regulations.

 

Advantages of this approach include:

  • Complete control over the customer journey and marketing strategy.
  • Flexibility in pricing and promotions without platform restrictions.
  • Avoiding high third-party fees (such as commissions and service charges).

However, this approach requires a robust marketing plan, as you’ll need to drive traffic to your website independently, often through Baidu SEO, targeted social media campaigns, and influencer partnerships.

 

Products You Can Sell Through China’s Cross-Border E-Commerce Channel

A data report showed that China’s online trade volume reached 904 million consumers in June 2024. Among these massive statistics are the country’s wealthy millennials pursuing exclusive luxury goods. 

Chinese consumers often prefer international brands due to their reputation for safety and quality, especially in light of past issues with counterfeit domestic goods. Here’s a look at the most in-demand categories:

  • Cosmetics & Beauty: Foreign skincare, makeup, and personal care products are hugely popular, especially those from well-established international brands.
  • Baby Products: Chinese parents favor foreign baby formula and related products due to previous safety concerns with some domestic brands.
  • Food & Beverages: Imported snacks, chocolates, wine, and health supplements are sought after for their quality and uniqueness.
  • Luxury Fashion & Jewelry: Wealthy consumers view luxury items as status symbols, driving strong demand for international fashion, jewelry, and accessories.

Most Chinese consumers rely on influencers, live streaming, and peer recommendations to guide their purchases. Because of this, many cross-border platforms integrate their systems with both e-commerce and social functions to fulfill the needs of their user base.

 

What are the cross-border e-commerce platforms in China?

1. Xiaohongshu (RED)

Commonly referred to as RED or Little Red Book, Xiaohongshu is a popular cross-border e-commerce platform in China with 300 million million monthly active users as of 2024. 

While it was initially launched as a social media platform for sharing product reviews and lifestyle recommendations, it has evolved into a full-fledged social commerce platform. It now combines social content with online shopping within the platform.

 

 

Xiaohongshu cross-border e-commerce platform China

 

International brands can set up official flagship stores on the platform, enabling direct sales to Chinese consumers. This direct-to-consumer approach bypasses the need for a physical presence, making it an attractive option for foreign businesses.

Xiaohongshu also has ongoing partnerships with various logistics providers to ensure smooth cross-border shipping and delivery. This channel not only helps international businesses overcome logistical challenges but also provides content marketing tools to increase brand recognition and visibility.

 

2. Pinduoduo (拼多多)

Like any regular shopper, local Chinese consumers are always on the lookout for online discount sales. If your target market includes audiences from low-tier cities, you can consider Pinduoduo a reliable cross-border e-commerce marketplace. This platform primarily targets price-sensitive consumers looking for value deals.

 

Pinduoduo cross-border e-commerce platform China

 

Given that Pinduoduo’s primary selling point is its group-buying model, small to medium-sized enterprises can expect significant returns when entering this channel. In fact, its success and innovative group-buying model have already caught the attention of Amazon.

 

3. VipShop (VIP.com)

VipShop’s primary business model revolves around flash sales, offering time-limited discounts on various products. These flash sales create a sense of urgency among consumers, driving impulse purchases and fostering a sense of exclusivity.

 

VIPSHOP cross-border e-commerce platform China

 

While it’s not a well-known cross-border e-commerce channel worldwide, it has become a popular destination for local consumers seeking value deals and access to global brands.

 

4. JD Worldwide

JD Worldwide is a significant cross-border e-commerce platform in China operated by JD.com, one of the country’s largest and most reputable online retailers. It facilitates international trade by enabling consumers to purchase products from overseas merchants and brands. 

While JD.com initially specialized in electronics, the expansion to JD Worldwide opened a diverse selection of products from various categories, including fashion, beauty, health supplements, electronics, and more.

 

JD Worldwide cross-border e-commerce platform China

 

It also operates on a B2B (Worldwide to China) and B2C (China to China) model. The B2B section allows overseas merchants to sell directly to local consumers through the platform, while the B2C section focuses on domestic sales within China.

And since JD Worldwide strongly emphasizes product quality and authenticity, it implements measures to combat counterfeit products, ensuring that customers receive genuine items from trusted overseas merchants.

As of today, the JD marketplace has ongoing collaborations with international brands and merchants. These partnerships help JD.com maintain a robust product catalog that caters to consumer preferences and demands.

 

5. Tmall Global Platform (天猫)

Alibaba is one of the top wholesale websites worldwide, and Tmall Global is its prominent cross-border e-commerce platform in China. These channels open trading opportunities in the Middle Kingdom, but they can be more expensive than the offers on JD.com.

Although Tmall Global is known for its stringent product vetting process to ensure quality and authenticity, it implemented a consignment solution called TOF (Tmall Overseas Fulfillment). Through this, brands can sell a small number of cross-border e-commerce products to test the local market and determine the right entry point for their businesses.

 

Tmall Global cross-border e-commerce platform China

 

It’s also worth noting that Tmall and Tmall Global operate under different regulations. While Tmall primarily focuses on domestic trade within China, Tmall Global caters to international brands and merchants seeking to enter the Chinese market.

Nevertheless, Tmall Global has certain entry requirements, and brands must meet specific criteria to be accepted. Joining the platform may also involve initial costs and risks, including product listing rejections or the potential loss of one’s deposit.

 

6. Kaola (Alibaba)

Kaola primarily offers high-quality “Western” products to middle-class Chinese consumers. It caters to consumers with a higher disposable income and willing to spend on premium products.

 

Kaola cross-border e-commerce platform China

 

Non-exclusive brands looking to establish themselves on Kaola should allocate a budget for marketing and advertisement. Promoting the brand effectively on the platform can drive visibility and attract potential customers.

 

7. Douyin

Many internet users might have known Douyin as a short-video social media platform, but this popular Chinese app launched its e-commerce arm way back in 2021. Its online shopping features allow consumers to purchase products directly without being redirected to another application.

It has a special cross-border e-commerce unit called Douyin EC Global, which helps brands market and sell their products without a physical presence in China.  Through established in-app Douyin stores and mini-programs, the platform facilitates the transaction between businesses and consumers.

 

Clarins' flagship store on Douyin

Creating a Native WeChat Shop (Store or Mini-Program)

With a massive user base of 1.34 billion in 2024, it’s no surprise that many successful online businesses create WeChat Stores or Mini-Programs. This super app allows you to develop a virtual storefront that connects to the menu of your official WeChat account.

As a brand, you can customize the store’s content, layout, and prices to create a unique shopping experience for your target consumers.

 

WeChat cross-border e-commerce platform China

 

In your WeChat account’s menu, you can easily add links to your shops through various options:

  • H5 App: Link to a mobile web app that offers an interactive and engaging shopping experience.
  • Mini-Program: Direct users to a lightweight app within WeChat that provides immersive content and games.
  • External Website: Connect users to your existing website to seamlessly transition to your WeChat Store.

 

Millennials and Gen Z shoppers, who are highly active on social media, show loyalty to brands that align with their image and aspirations. The WeChat advertising environment provides many options to boost your brand and products, allowing your campaign to reach a wider audience.

 

Example of our Client’s WeChat E-Commerce Mini-Program

Example of our Client’s WeChat E-Commerce Mini-Program

 

 

Brand Protection and Trademarks in China

We highly recommend registering for brand trademarks if you plan to do cross-border trade in China. Although copying and intellectual property infringement are past issues that are also present in the international market, protecting your brand through trademark registration is a crucial step in establishing and differentiating your brand from others.

The “first to file” system in China means that the first entity or individual to file a trademark application will be recognized as the legitimate owner of that trademark. Therefore, registering it with the central government as early as possible is essential to prevent others from using or copying your brand identity.

To ensure a smooth and effective trademark registration process in China, working with an experienced agent from the trademark office at the State Administration for Industry and Commerce of the People’s Republic of China (SAIC) is advisable. They can guide you through registration and help you navigate potential challenges or legal requirements.

 

Taxes & Customs Regulations in China

Cross-border logistics for the B2C model and goods from a bonded warehouse must complete import tax payments, VAT, and consumption tax. Typically, the percentage of these import tariffs depends on the product categories.

However, if the goods you’re trading belong to the “positive products list,” you’ll be subjected to a special customs tax rate of 11.9%. It’ll also exempt you from clearance and import license requirements.

 

Here are some of the products from the list provided by CIRS:

  • Beauty & Cosmetics
  • Fashion Clothing
  • Furniture Pieces
  • Selected Dairy Products
  • Registered Health Supplements & Vitamins
  • Food for babies
  • Fitness/Wellness products
  • Food Spices

While cross-border e-commerce in China eliminates the lengthy business registration process, you must submit an import permit for goods outside the categories we mentioned. You’ll also need a registration form for nutritional goods.

 

How much does Chinese foreign trade cost?

The cost of cross-border e-commerce (CBEC) in China is relatively low due to the government’s policies and regulations that promote trade development. 

Since the Chinese government has eliminated sales tariffs on various products, it established different online payment and logistics platforms to facilitate the integration of foreign and domestic segments.

The main fees and costs of foreign trade in China include creating and maintaining internet cross-border e-commerce platforms (such as Tmall Global, Taobao, etc.). Brands must also consider website design and optimization expenses, advertising, and marketing campaigns. 

In addition to the customs trade costs, your budget should include additional fees for warehouse management, enterprise resource planning, transportation management, shipping, and logistics. 

If you intend to do this business in the long run, storage costs become crucial when engaging in China’s cross-border e-commerce. Investing in a storage area in a cross-border e-commerce zone requires careful consideration and accurate sales forecasts.

 

What Payment Methods Can Foreign Companies Use for E-commerce in China?

Navigating the China cross-border e-commerce market demands savvy handling of fluctuating exchange rates. But fear not, for there are seamless solutions at your disposal. You can opt for WeChat and Alipay as payment options for hassle-free transactions in China. You won’t need a Chinese bank account, but this process requires a valid business license.

 

WeChat Pay

One reason WeChat stores are preferred as a cross-border e-commerce channel is their quick and easy “one-click-payment” checkout process. Once the shop owner implements the WeChat payment gateway, customers can complete their purchases with a single click.

They can also scan the QR code on their phones at the checkout counter for instant payment processing. For cross-border e-commerce transactions, WeChat Pay will not incur additional fees or charges.

 

WeChat Pay & Alipay

 

AliPay

With an impressive user base exceeding 600 million active individuals in the Chinese market, Alipay seamlessly facilitates transactions for merchants across prominent Alibaba e-commerce platforms, such as AliExpress, Taobao, and Tmall Global.

In cross-border e-commerce transactions, Alipay caters to diverse payment preferences with many options, including credit card payments, bank transfers, and even cash-on-delivery.

Furthermore, Alipay extends its commitment to security by offering robust tools like Buyer Protections, reassuring customers with the promise of refunds in cases where products are undelivered or other such concerns arise.

 

Your Trusted Cross-Border E-Commerce Partner in the Chinese Market!

Understanding the Chinese landscape is the key to unlocking success in the cross-border e-commerce market. To ensure a successful entry and consistent profits, you must plan an effective strategy according to the trends and tools available in today’s digital space. 

 

You may also want to read:
Guide to social commerce in China

 

Don’t let the complexities of the Chinese market hold you back! Our team is here to guide you through every twist and turn, transforming your brand’s potential into a resounding success.

 

Sekkei Digital Group Services

 

Whether you’re setting up an e-commerce channel, crafting compelling paid advertising campaigns, or harnessing the power of SEO and social media, we have the digital solutions you need.

 

 

Contact us today, and let the world witness your brand’s remarkable growth in China’s thriving business landscape. The possibilities are endless – let’s make them a reality!

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