The Ultimate Guide to Selling on Tmall Global: Mastering E-commerce in China
Tmall Global, launched by Alibaba Group in 2014, is an extension of its already successful Tmall platform but with a distinctive focus on international brands and retailers. It stands as a premier cross-border e-commerce platform, allowing non-Chinese merchants to sell directly to consumers in China without the need for a physical presence in the country.
This platform has rapidly become a pivotal gateway for international brands aiming to tap into the expansive and continuously growing Chinese market, which is characterized by its high demand for quality foreign products across various categories such as beauty, health, nutrition, baby products, and luxury goods.
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The significance of Tmall Global in the Chinese e-commerce landscape cannot be overstated. With China being one of the largest and fastest-growing consumer markets in the world, Tmall Global offers an unparalleled opportunity for international brands to build their presence and expand their customer base.
It provides a trusted platform where Chinese consumers can explore and purchase authentic international products. The platform’s rigorous vetting process for merchants ensures that only genuine brands and high-quality products are available, which in turn builds consumer trust and loyalty.
E-commerce Sales by Country 2023, Source: OBERLO
The difference between Tmall Global and Tmall
While both platforms are under the Alibaba Group umbrella, Tmall and Tmall Global serve distinct functions and target different markets.
Tmall, originally known as Taobao Mall, is a domestic e-commerce platform that caters to Chinese companies and consumers. It allows local Chinese businesses and international companies with a physical presence in China to sell their goods.
In contrast, Tmall Global is specifically designed for international businesses looking to sell their products in China without a local operation. This distinction is crucial for foreign brands since Tmall Global simplifies the entry process into the Chinese market by navigating the regulatory and logistical challenges associated with cross-border e-commerce.
Moreover, the consumer experience on both platforms is tailored to their respective audiences. Tmall Global emphasizes authenticity and quality, curating a selection of foreign brands that might be new or otherwise unavailable in China. This focus on introducing international products to Chinese consumers differentiates it from Tmall, which primarily features brands already established and recognized in the Chinese market.
A Glimpse of Tmall Global
Tmall Global Mobile App
Tmall Global Desktop Website
Access to the vast Chinese market
Selling on Tmall Global opens up the vast Chinese market to international brands, offering an unprecedented opportunity to tap into a consumer base that is not only large but also increasingly affluent and eager for high-quality international products.
China’s e-commerce sector is among the largest in the world, with hundreds of millions of active online shoppers. This massive market presents a lucrative opportunity for brands across various industries, from fashion and beauty to electronics and health supplements.
Brand exposure in one of the world’s largest e-commerce platforms
Tmall Global is part of Alibaba Group’s ecosystem, which is a dominant force in the global e-commerce landscape. Being on Tmall Global means that your brand gains visibility among the vast user base of Alibaba’s platforms. This visibility is not just about numbers; it’s about engaging with consumers who are actively seeking quality and authenticity in their purchases.
The platform also offers various marketing tools and promotional events, such as the famous Singles' Day (11.11), which can significantly enhance brand exposure and sales volumes. Participating in these high-traffic events can catapult a brand into the spotlight, increasing its recognition and credibility among Chinese consumers.
The convenience of cross-border e-commerce without the need for a local entity
One of the most significant barriers to entering the Chinese market has traditionally been the requirement for foreign businesses to establish a local entity, which can be a complex, time-consuming, and costly process. Tmall Global eliminates this barrier by allowing international brands to sell directly to Chinese consumers without needing a physical presence in China. This model simplifies the process of entering the Chinese market, making it more accessible for foreign brands of all sizes.
Additionally, Tmall Global handles many of the logistical challenges associated with cross-border e-commerce, such as customs clearance and international shipping, further easing the entry process.
Moreover, Tmall Global provides an infrastructure that supports international transactions, including foreign currency settlements and customer service capabilities that cater to a global audience. This level of support and convenience makes Tmall Global an attractive platform for brands looking to explore the Chinese market without committing to establishing a local operation.
Criteria for foreign businesses to sell on Tmall Global
Tmall Global has established specific eligibility criteria to ensure that only reputable and high-quality international brands can sell on its platform. These criteria are designed to maintain the platform’s integrity and consumer trust. Key eligibility requirements include:
Business Registration: The company must be registered outside of mainland China. This aligns with Tmall Global’s focus on facilitating cross-border e-commerce by allowing international businesses to reach Chinese consumers without a local presence.
Brand Ownership or Authorization: The business must own the brand it intends to sell or have explicit authorization from the brand owner to distribute its products. This requirement ensures that all products sold on Tmall Global are authentic and legally sold.
Quality Products: The brand must offer high-quality products that comply with Chinese regulations and standards for imported goods. This includes having the necessary health, safety, and quality certifications for specific product categories, such as food, cosmetics, and health supplements.
Retail and Trade Experience: Applicants should have a solid track record of retail or trade experience, preferably in the e-commerce sector. This experience demonstrates the brand’s capability to manage online sales and fulfill orders efficiently.
Necessary Certifications and Documents
To apply for a Tmall Global store, businesses must prepare and submit a range of certifications and documents that verify their eligibility and compliance with Chinese regulations. These typically include:
Business License: A copy of the company’s business registration or incorporation certificate from its home country.
Brand Ownership or Authorization Certificate: Documentation proving the brand ownership or an official authorization letter from the brand owner allowing the sale of their products on Tmall Global.
Product Certifications: Depending on the product category, brands may need to provide relevant health and safety certifications, such as CE certification for electronics or FDA approval for food and health products.
Trademark Registration: Proof of trademark registration in the brand’s home country, and if available, trademark registration in China. While not always mandatory, having a registered trademark in China can provide additional protection against counterfeiting and intellectual property infringement.
Bank Account Information: Details of the company’s bank account for transaction settlements. Tmall Global supports transactions in multiple currencies, accommodating international businesses.
Adhering to these criteria and preparing the necessary documentation is the first step for any foreign business looking to leverage the Tmall Global platform to access the Chinese market.
Embarking on the journey to open a Tmall Global store involves a structured process, from application to setting up your online storefront. Here’s a comprehensive guide to get you started:
a. Registration Process
How to apply for a Tmall Global account
Initial Inquiry: Begin by visiting the Tmall Global official website, where you’ll find an application inquiry form. This form requires basic information about your business and the brand you intend to sell. Submitting this form is the first step in expressing your interest and initiating the application process.
Formal Application: After submitting your initial inquiry, you will be directed to complete a more detailed application form. This stage involves providing comprehensive information about your company, including business operations, financial health, and the products you plan to offer.
Required documents and information
Business License: A copy of your company’s registration certificate, indicating legal business operations in your home country.
Brand Authorization: If you are not the brand owner, a letter of authorization from the brand owner permitting you to distribute their products on Tmall Global.
Trademark Certificates: Documents proving trademark registration in your country, and preferably, in China as well.
Product Certifications: Relevant certifications that demonstrate compliance with Chinese import regulations for your product category.
Financial Statements: Recent financial statements to showcase the financial stability of your business.
b. Store Setup
Choosing between a Tmall Global Flagship store, a Tmall Direct Import store, or an Overseas Fulfillment store
Tmall Global Flagship Store: Ideal for brand owners or authorized agents who wish to sell multiple product lines under one brand. It’s the most common type of store on Tmall Global, allowing brands to fully control their branding and sales strategies.
Tmall Direct Import Store: Ideal for brands aiming to sell to the Chinese market without establishing their own independent store. Your products will be showcased within Tmall Global’s official department store, allowing them to be sold alongside offerings from other brands.
Overseas Fulfillment Store: This option is suited for brands that wish to test the Chinese market without significant inventory commitments. Products are shipped from overseas warehouses as orders are placed, offering flexibility in supply chain management.
Designing and setting up your storefront
Visual Design: Your storefront’s visual appeal is crucial. Tmall Global provides templates, but custom designs that reflect your brand identity are recommended. High-quality images, engaging banners, and clear navigation enhance the shopping experience.
Product Listings: Create detailed product listings with high-resolution images, comprehensive descriptions, and specifications. Include information on pricing, shipping, and returns to build trust with potential customers.
Customer Service: Tmall has their official customer service software called Ali Workbench. Set up a customer service team to handle inquiries, complaints, and after-sales service. Offering service in Mandarin can significantly enhance customer satisfaction and loyalty.
Promotions and Marketing: Plan your marketing activities within Tmall Global’s ecosystem. Participate in platform-wide sales events and utilize Tmall’s advertising tools to increase visibility and drive traffic to your store.
Establishing and managing a Tmall Global Store entails various costs, which can fluctuate based on factors like your business’s nature.
Key expenses include:
Security Deposit: Ranges from 50,000 RMB to 100,000 RMB, refundable upon the closure of your Tmall Global store.
Yearly Support Fee: Between 30,000 RMB and 60,000 RMB. Charged on a yearly basis.
Technical Support Fee: Accounts for 2.5% to 5% of your sales.
Transaction Fee by Alipay Global: Fixed at 1% of the transaction volume.
Customs Duties: Sellers have the option to either absorb the customs duties themselves or pass these costs onto the customers.
Logistics and Warehousing with Cainiao: Charged for product storage and order fulfillment.
Navigating the logistics and fulfillment aspects is essential for a successful operation on Tmall Global. To streamline the logistics process for overseas sellers, Tmall Global has established its own network of warehouses within bonded areas across China, known as Cainiao (菜鸟).
From a global standpoint, Cainiao has established seven significant core logistics hubs, encompassing 2 million square meters of bonded and overseas warehouses. This expansive network spans six continents and 174 countries and regions, positioning it among the top four global cross-border logistics networks. By standing shoulder to shoulder with the three major international couriers — FedEx, DHL, and UPS — Cainiao has played a pivotal role in powering Alibaba’s international expansion efforts.
Options for Warehousing and Fulfillment Services
Bonded Warehousing with Cainiao: This option involves storing goods in bonded warehouses located in special economic zones within China. Bonded warehousing allows for faster delivery times since products are already in close proximity to the end consumer. Additionally, customs duties and taxes are deferred until the goods are sold and dispatched from the bonded warehouse.
Overseas Warehousing with Cainiao: Sellers can store their products in Cainiao’s warehouses located outside of China, which is ideal for businesses looking to test the market without significant upfront investment in inventory. Orders are fulfilled directly from these warehouses, and products are shipped to China upon purchase.
Direct Shipping from Brands' Own Facility: For sellers who prefer to keep their inventory offshore, Tmall Global offers direct shipping options where products are shipped directly from the seller’s home country to the consumer in China. While this method might involve longer shipping times, it enables sellers to manage their global inventory more flexibly.
Understanding Customs, Duties, and Taxes for Cross-Border E-commerce
Navigating the customs process is a critical aspect of cross-border e-commerce in China. Tmall Global assists sellers with customs clearance, ensuring that all products comply with Chinese import regulations. It’s important for sellers to understand the following:
Customs Duties and Import Taxes: Products sold on Tmall Global are subject to Chinese customs duties and import taxes. The platform provides guidance on the applicable rates based on product categories, helping sellers price their products competitively while covering these costs.
Regulatory Compliance: Sellers must ensure that their products comply with Chinese standards and regulations. This includes obtaining necessary certifications and adhering to labeling requirements specific to their product category.
HS Code Classification: Proper classification of products using the Harmonized System (HS) code is essential for accurate customs declaration. Tmall Global offers resources to help sellers determine the correct HS codes for their products.
Alipay Global serves as Tmall’s proprietary cross-border payment solution, and it stands as the official payment method on Tmall.
This integration facilitates seamless transactions for international shoppers, ensuring a secure and efficient payment process directly within the platform.
All sellers on Tmall Global are required to set up an Alipay Global account prior to listing and selling their products on the platform. This ensures a streamlined payment process for international transactions.
Tmall Global offers a suite of powerful marketing tools and promotional events designed to enhance brand visibility and drive sales. To effectively leverage these resources, brands should:
Participate in Major Sales Events: Tmall Global hosts several major shopping festivals throughout the year, such as the 11.11 Singles' Day Sale and the 6.18 Mid-Year Sale. Participating in these events can significantly boost your brand’s exposure and sales volumes.
Utilize Tmall Global’s Advertising Solutions: Invest in Tmall Global’s paid advertising options, including search ads, display ads, and live-streaming features, to target potential customers more precisely.
Customize Storefronts for Promotions: Tailor your storefront’s design and layout to highlight promotional offers, new arrivals, and best-sellers to attract and retain customers.
In the highly competitive Chinese e-commerce landscape, exceptional customer service is a key differentiator that can significantly impact brand loyalty and consumer trust.
Chinese consumers have high expectations for customer service, including swift response times, personalized assistance, and flexible after-sales policies. Prioritizing customer service can lead to increased customer satisfaction, repeat purchases, and positive word-of-mouth referrals.
Tmall Global’s Customer Service Channels
Tmall Global provides a variety of customer service channels to help brands effectively communicate with their customers, including:
Live Chat: Offering real-time assistance, live chat is a preferred method for many consumers seeking immediate help or advice.
AI Chatbots: For handling common queries efficiently, AI chatbots can provide 24/7 support, improving response times and freeing up human agents for more complex issues.
Leveraging these channels to provide comprehensive, multilingual support can significantly enhance the customer experience on Tmall Global.
Handling Reviews, Returns, Refunds, and Complaints
Effectively managing reviews, returns, refunds, and complaints is crucial for maintaining a positive brand reputation on Tmall Global. Here are some strategies:
Proactively Manage Reviews: Encourage satisfied customers to leave positive reviews and promptly address any negative feedback by offering solutions or compensation if appropriate. This not only improves your rating but also demonstrates your commitment to customer satisfaction.
Streamline the Returns Process: Make the returns process as simple and hassle-free as possible. Clearly outline your return policy on your store page, including conditions for returns/refunds, the return process, and any associated costs.
Efficient Refund Processing: Ensure that refunds are processed quickly to maintain trust. Transparent communication about the status of refunds can also help alleviate customer concerns.
Navigating the legal and regulatory landscape is crucial for international brands operating on Tmall Global. Ensuring compliance and protecting your intellectual property are key to a successful and sustainable business in China.
China’s e-commerce market is governed by a comprehensive set of laws and regulations designed to protect consumers, promote fair competition, and ensure data security. Brands selling on Tmall Global must:
Understand and Comply with Relevant Laws: This includes the E-commerce Law of China, the Consumer Rights Protection Law, and the Cybersecurity Law. These laws cover aspects such as consumer rights, data protection, and online transactions.
Adhere to Product Standards: Ensure that your products meet Chinese national standards (GB standards) and any applicable industry-specific regulations. This may involve obtaining certifications or undergoing product testing.
Taxation and Customs Compliance: Familiarize yourself with China’s import regulations, customs duties, and tax policies. Compliance with these regulations is essential for smooth customs clearance and avoiding penalties.
The reassuring aspect is that, in the majority of scenarios, the responsibility of navigating these complexities doesn’t fall solely on your shoulders. Tmall Global’s dedicated compliance team, along with Cainiao, Alibaba’s logistics arm, works diligently to ensure that all sellers adhere to the requisite standards and regulations. This collaborative approach significantly alleviates the burden of compliance, allowing you to focus more on growing your business.
Here are some of the top international sellers on Tmall Global:
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