China’s eCommerce market is growing rapidly due to the increasing purchasing power and digitization of society. It also embraces new technologies and innovation. This innovative culture is largely due to the market’s competitiveness and the demand of its consumers. We are going to take a closer look at Alibaba’s Tmall, China’s largest eCommerce platform by revenue (as of 2002).
This guide should help you better understand the role of Tmall on Chinese consumers and the best eCommerce practices for success in China.
Tmall (Tian Mao), a subsidiary of Taobao’s e-commerce site Tao Bao Wang, was originated in 2008 by the Alibaba Group. Their business model mainly focused on Business-To-Consumer. Tmall’s vision is both ambitious and smart. It opens for both local and multinational companies to open a store and sell products on the platform in Taiwan, Hong Kong, Macau, and Hong Kong. Tmall’s strict quality standards and reputation make it stand out from the rest.
Tmall is the leader in ranking top Chinese websites by traffic volume. This is even more than Baidu, the most popular Chinese search engine. The app is used by Chinese consumers for an average of 7 minutes per day, more than double the amount of time they spend on JD.com. Another Chinese ecommerce website also the competitor of Tmall.
Tmall: An incredibly powerful platform for luxury brands
Tmall is a great e-commerce platform for international businesses. It can help them increase sales and promote their brand. Tmall Global and Tmall Luxury Pavilion are available to luxury brands. This pavilion allows top clients access to premium and luxury brands with exclusive flagship stores. A unique user experience, such as AR and AI, can help them attract customers and increase their time on your website.
Do I need Tmall to sell goods in China?
Tmall is not the only popular e-commerce site in China. Many e-commerce sites could be more appropriate for your company in terms not only of marketing strategies but also in terms of price. Tmall is the market leader in China, so selling products there can be prohibitive for smaller businesses. We recommend that you start your business on Tmall if your brand/company has the funds. Because doing business at Tmall isn’t cheap compared to Amazon and other ecommerce platform. Your journey will be rewarding if you work in your store, off-site marketing, and on-site.
How do you sell your products on Tmall?
China’s e-commerce sites offer the opportunity to open shops. However, your motivation is not the only thing that will determine your chances of opening a shop. It also depends on how your brand presents and the potential it has on the platform. Tmall has very strict rules about quality of the products. You will need to demonstrate what your product is and convince Tmall that you can sell it on one of the most popular e-commerce sites in the world.
Tmall Registration & Running Fees:
Tmall’s fees can be quite expensive if you wish to sell your products there. However, it is usually worth it if you have the right strategy.
* Tmall Flagship stores cost between 50,000 RMB to 100,000 RMB
* Marketplace: 100,000 RMB to 150,000 RMB
* Technical services will cost you between 30,000 and 60,000 RMB each year.
*Tmall sales commission can be 0.5% to 10% of sales, but it is usually between 2% and 5.5%.
* Last but not least, Alipay is a Chinese subsidiary of Alibaba. This means that Alipay will account for 1% of your total sales.
Doing business on leading Chinese’s ecommerce website is not only exciting but also very fruitful. Best of luck in your journey to sell in china.