global Tax
B2C Sales Requirements for Chinese E-commerce Platforms
December 30, 2016B2C platforms are beneficial selling models, especially when reaching Chinese consumers. How exactly do you open a shop on a major B2C platform in China?
Opening a shop on any major B2C (Business-to-Consumers) platform in China is an effective way to sell to Chinese consumers, as this will not only help investors reach potential customers directly, but also avoid the hassle of obtaining approval from different departments. There are a few requirements businesses must meet in order to enter B2C platforms.
Overview of requirements
Tmall: Companies must be an established business entity in China and hold a Chinese retail business license. Meanwhile, they must already have on-the-ground operations in China and store merchandise in the country. They are also required to prove they have the capabilities to ship orders within 72 hours of placement, and be able to track shipments. For the after-sale service, they must provide customers with the option to return a product for a full refund with no questions asked within seven days of receipt.
Tmall Global: Companies entering Tmall Global must hold qualifications for overseas retailing. They may have operations within mainland China or abroad, but their stock must be located outside of China. To have a store on Tmall Global, companies must have facilities to handle returns within China.
JD.com: As is the case with Tmall, JD requires that merchants be registered companies in China. To qualify for JD, companies must be registered for at least a year and have a registered capital of at least RMB 500,000 or 73,650 USD. They must also present a product quality check report and a customs inspection declaration for any imported goods, both dated within a year from the date of application.
JD Worldwide: A foreign company is required to be an overseas legal entity with qualifications for retailing and trading overseas. Companies on JD Worldwide need to provide a location for returns in mainland China, provide product information in Chinese with metric units, and offer Chinese speaking customer service staff.
Interested in opening a shop on a Chinese B2C platform? Contact our Global Tax Services Practice. Stay tuned for more on the state of China’s economy and tips for Doing Business in China.
