The cost of ecommerce platforms in China

 

 

Let see the Costs, with this Graphs..

the-cost-of-entering-E-commerce-platform-clothing-1Source China Internet Watch

 

For example for clothing it would costs 100 000 yuan for security deposit (USD 16,218), plus 60,000 yuan for service fee (USD 9,730), and finally the commission is 5% sales revenue.

What are these costs?

–          The security deposit is there to avoid that shops cheat on the consumers. If there is a fraud this money would be used to compensate the customers.

–          The service fee is the annual cost of the B2C platform, and you have to pay it monthly.

–          The commission is a percentage of sales taken by the platform’s company.

Let’s know more about these e-business companies!

 

The platforms

  • Tmall, or天猫 Tiānmāo  in chinese, is the B2C platform of the giant Alibaba. It sells international products to Mainland China, but also Hong Kong, Macao and Taiwan. It was first opened by Taobao (C2C platform of Alibaba) in April 2008 as Taobao Mall. In 2011, Jack Ma, CEO of Alibaba reorganized Taobao and made of Tmall a separate platform; an independent business of Alibaba.

It is now in China the leading B2C platform, with 51,3% market share of the B2C business in the beginning of 2013. The biggest companies have now all a store on Tmall like Lenovo, Dell, Nokia, Adidas, Reebok, Ray-Ban, Philips, Samsung…

It offers in total products of 70 000 different brands from China and all over the world, to more than 180 million buyers.

According To Alexa’s ranking of 2012, Tmall was then the 43st most visited website in the world, and the number 5 in China.

Most customers use Alipay, the Alibaba payment solution, to buy on Tmall.

 

tmall

 

  • JingDong, formerly 360 buy, is one of the biggest 3C (3C stands for Computer, Communication, and Consumer Electronic) online seller of the B2C market in China. It started working on the e-business in 2004, and it has now 20.7% market share, coming just after Tmall. The company has 6 major centers, 71 warehouses in 27 cities, and nearly 1,000 delivery stations. In 2012 it reached revenue of 9.7 billion dollars.

Recently JingDong launched the new electronic « fapiao » or receipt, which is government-issued, which helps minimizing costs, and has a positive impact on environment.

 

jingdong

  • Dangdang is also a leading e-business B2C platform. They first started selling books, and then extended to others products, such as beauty, home and lifestyle products, apparel, digital and electronics products. In 2013, they offered over 910,000 books and media products, which is the largest selection existing online and offline. They also have now 20 logistic centers in strategic locations.

dangdang

  • Yihaodian, or一号店 in Chinese, is a online grocery business founded in July 2008, introducing a “commodity” category in the B2C online market. Wallmarkt invested in the company, and in 2012 owned 51% of Yihaodian.

yihaodian

  • QQbuy was opened in 2012 by the giant Tencent. Because now the B2C platforms do partnerships with internet companies for payment solutions for example, Tmall partnered with Sina Weibo, and QQbuy is probably going to partner with wechat, the chat application of Tencent.

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  • Amazon is an American Seattle-based company, and is present in many countries. The Chinese B2C platform is Amazon.cn.  The customer service center of China was in Chengdu. It is also now present in Beijing, Suzhou and Guangzhou for example.

 

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See here for more details on the prices , and here for the keys to success in e-commerce in China !

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China Marketing