Aright Tech - Thoughts Archive

Tmall Global is a platform that allow overseas merchants to sell their products to Chinese consumers online. Overseas sellers usually signup agreements with Tmall in Hong Kong, and operate under Hong Kong law and regulations. Finance transactions between sellers and platforms are from Hong Kong to the respective countries, thus the process is much easier than import and selling in China Tmall stores directly.

China eCommerce market is very competitive, and dominated mainly by JD and Tmall. Tmall Global (Tmall HK) is basically a HK registered entity, which allows overseas sellers to signup as merchant, and sell products into China mainland buyers. 

Usually, we don't recommend totally new brands or companies selling via Tmall Global. For products who have been successfully in other overseas market, and those products are in demand by Chinese market, then the products shall have a good potential market there. It is a billion+ population marketing, and with quite sizable middle and high income people, 109 million, with income more than 300K RMB per year.

China is known for very strict for goods imports. So going by traditional import and distribution way, it will be very tough in terms of costing, the time spent, and the process. Cross Border Ecommerce opens the opportunities to many global brands, and CBE will allow those brands selling into China market with mush easier workflow, and without to incur expensive costing.

Simple steps as below:

1. Register as seller/merchant in one of the China platforms which allows CBE. Platforms, such as Tmall Global, or JD Global, have a very good process on that. Documents must be well-prepared and some necessary data must be submitted.
    
2. Note, some popular categories of products, such as health supplements, or cosmetics, are highly regulated in China market. Traditional import may cost you millions of dollars to get the license to import and sell. But CBE, selling in CBE platforms, requests no such license for foreign sellers.
   
   A typical listing view of cosmetic products listed in Tmall Global.
    
3. Sellers can test out products via direct shipping from their countries. For example, you are Singapore company, then once someone places an order, you can send out the products from Singapore warehouse with the logistics partner of the platform. It may take 2 to 3 weeks to fulfill an order due to the international shipping delay.
    
4. A much better way, after confirming the products which are in popular demand in China, sellers can send bulk goods into China bonded warehouse, located in different cities, supported by the platforms. Once order is placed, send out the goods from the bonded warehouse, and it will take 2 to 3 days to reach the buyer. Delivery time is certainly improved. And tax is charged only when the order is finalized.
   
   
   A typical bonded warehouse view (Not the actual Tmall bonded warehouse).
    
5. Money withdraw is between Hong Kong and the sellers company. No need to worry about the problem of funds transfer.
    
6. In terms of operation, for very serious sellers, we normally recommend to setup the whole operation team in China. Only people there know the best marketing approach in China. Cities which has good manpower for eCommerce are: Wuhan, Chengdu, Chongqing. Many experienced manpower resources in these cities, and rental, salary and other costings are relatively low, comparing to Shanghai, Shenzhen and Guangzhou.

Below are some information we summarized from Tmall Global merchant signup process. 

About Tmall.HK

Tmall.HK is one of the leading online shopping platforms in Hong Kong. It was launched in 2017 as a subsidiary of Alibaba Group and has since gained immense popularity among the online shopping community in Hong Kong. Tmall.HK offers a wide range of products, including electronics, fashion, home appliances, beauty, and personal care items, and has established partnerships with various local and international brands. As of 2022, Tmall.HK has over 4.3 million daily active users and 100+million total active users which is a testament to its popularity and trustworthiness among Global consumers.

What's Tmall.HK can do?

Tmall.HK is not just an ordinary online shopping platform. It provides various solutions for businesses to leverage its platform and reach a wider audience in Hong Kong and beyond. Here are some of the solutions that Tmall.HK offers:

1. Flagship Store: Tmall.HK offers businesses an opportunity to establish their flagship store on the platform, which helps to build brand awareness and trust among customers. By having a dedicated store on Tmall.HK, businesses can showcase their products and services and create a unique shopping experience for their customers.

2. Tmall Direct Import: Tmall.HK provides businesses with an option to sell their products to Tmall Global, which is a B2B platform. Tmall Global connects international brands with Chinese consumers and provides businesses with access to a large and growing customer base in China. By selling through Tmall Direct Import, businesses can benefit from Tmall's extensive marketing and logistics network.

3. Ministore: Tmall.HK offers an incubation program for small and medium-sized businesses (SMBs) to establish their online presence and start selling on the platform. Ministore provides SMBs with a range of tools and resources to create a unique and personalized shopping experience for their customers. It is an excellent opportunity for SMBs to grow their business and expand their customer base.

4. Overseas Fulfillment: Tmall.HK also offers businesses the option to fulfill their orders through its overseas fulfillment center. This solution allows businesses to store their products in Tmall's warehouse and ship them directly to customers in Hong Kong and other countries. This helps businesses to reduce their shipping costs and improve their overall delivery speed.

Tmall.HK provides businesses with a range of solutions to help them reach a wider audience and grow their business. Whether it's building brand awareness through the flagship store, selling to Tmall Global through Tmall Direct Import, incubating SMBs through Ministore, or fulfilling orders through Overseas Fulfillment, Tmall.HK has something to offer for every business.

What can we do for you?

Tmall International: Merchants need to have a registered company outside mainland China, a bank account outside mainland China, and a warehouse outside mainland China. Merchants also need to provide their business license, trademark registration certificate, product information, and authorization letter from the brand owner (if applicable). Merchants can apply for a shop on Tmall International through the official website: https://global.tmall.com/merchant.htm

We will take a series of actions to ensure that your store can complete the registration process on Tmall safely and securely.

4-Steps Onboarding

Does it look too complicated and do you fear failure? Leave it to us! Let us help you successfully register on Tmall and bring you a breakthrough increase in revenue.

Business Process (Logistics)

Logistic Models: Seller can either ship via direct mail or bonded warehouses, depending on your store's type.
Operation Models: Sellers can either choose to run their stores by themselves, or simply outsource their store operation works to an authorized third-party e-commerce agency (TP)