EXPAND YOUR BUSINESS TO CHINA WITH CROSS-BORDER E-COMMERCE
Grow your business with a cross-border E-commerce website without stepping one foot in the targeted country.
These past few years, cross-border E-commerce websites have experienced an unstoppable international expansion around the world and, more specifically, in China (through Amazon for the international market). But what exactly is “cross-border E-commerce"? The expression, “cross-border E-commerce" indicates the sales activity done on an E-commerce website with customers located in a country other than where the E-commerce site is located. It is then in the form of an export, or the internationalization of an activity which is not made of the implantation abroad.
CROSS-BORDER E-COMMERCE IN CHINA
Cross-border E-commerce in China is unique because of the Chinese method of doing business, and due to the specificities of the Chinese market itself. Moreover, Chinese customers have a positive perception of foreign products. They are perceived as being of good quality and innovative.
How to do cross-border E-commerce in China:
- Use marketplaces (existing platforms) such as JD Worldwide, Tmall Global, etc. However, to be able to use these well-known cross-border platforms in China and sell your products, you will need to follow numerous rules and fulfill different requirements. These platforms are easier to access if you have an ongoing business that has proven successful in other countries. Otherwise, for a new company, it will be quite a challenge to get access to these platforms.
- Creating your own cross-border E-commerce website in China is currently one of the most popular ways to operate there, if you are not willing to set up a company in China. The partner you choose to create your E-commerce website in China, will help you to find the most suitable solutions for local payments.
CHINA’S DIGITAL SYSTEM STRENGTHS
One of the benefits of cross-border E-commerce is that it allows consumers to buy online products without having to pay taxes. Additionally, by means of cross-border E-commerce, international brands can sell without a Chinese business licenses. 42% of global E-commerce occurs in China (U.S.A. is now only 24%). This is possible thanks to the strengths of China’s digital system (sources from McKinsey Global Institute).
One of the strengths of China’s digital system is unquestionably its use of mobile money. The mobile payment system in China reached more than $5 trillion in 2016. Alipay got 54% of the mobile payment market and WeChat Pay had 40%. Recently, it has become clear that the difference between Alipay and WeChat Pay is starting to fade. Moreover, having Baidu, Alibaba and Tencent investing massively in mobile payment is helping to strengthen this position in China.