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Market Entry Tips For China Ecommerce Success!
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Are you looking to setup a WeChat eCommerce store? We provide a range of services and products, from strategy to implementation. We are especially experienced in China cross-border eCommerce, but also do eCommerce website development in Magento 2 or our own ShopNow Cloud.

Which market entry strategy is the right one for me to start on the Chinese eCommerce market? What is important when organising distribution and logistics for eCommerce in China? Focusing on starting your eBusiness in China, you encounter many questions. Many of TMO Group’s clients also had these challenges. In today’s article, we share some of the things we learned in the past 20+ years.

Cross-border eCommerce as Part of Your Market Entry Strategy

Behemoths such as Tmall, Alibaba and JD.com dominate the Chinese eCommerce market. Together, these 3 account for over 80% of the total China eCommerce market share. That leaves only a small remainder for other parties, so it is no wonder competition is fierce.

However, cross-border eCommerce does offer a comparatively accessible entry strategy to foreign companies. The market is still growing and entering Chinese eCommerce comes with 2 primary advantages. First, it is subject to fewer taxes and second, there is still a growing interest from the Chinese public for foreign brands.

Using the Right Tools for the Best Results

Knowing the advantages is one thing, but how to make use of them? The preferential tax rate is based on the “Positive List”, which lists categories of products that one can import to China via cross-border eCommerce. Check our Positive List Helper now to see if your product category is included!

As for capitalizing on the existing interest in foreign brands, there are three channels to consider: a stand-alone web shop, marketplaces, and WeChat stores. All of these channels allow you to sell your products in China without the necessity to obtain a Chinese business license. Eventually the aim is to develop an omni-channel sales strategy where you might sell products both off- and online.

Interested in more details on China cross-border eCommerce or different Chinese marketplaces? We have written a lot more about sales channels and market entry strategies. Check out discover Tmall Global and how to sell on Tmall Global, or take a look at its competitor in how to sell on JD.com.
TMO Group is a global eCommerce service provider in ao Market Localization, Cloud, UI UX Design. Visit www.tmogroup.asia for more.
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