What are the most popular online marketplaces in China? The Chinese e-commerce landscape is diverse and each of you should be able to find one that fits your needs and business goals. Each and every Chinese eCommerce platform has its pros and cons depending and who you are. Throughout this article, we’ve listed some of the top online marketplaces in China available to international traders.
The Most Popular Online Marketplaces in China — Tmall, China’s #1 e-commerce platform
Founded in 2008 under the famous Alibaba group, Tmall (天猫), is a subsidiary of the e-commerce website Taobao (淘宝网) and China’s largest eCommerce platform in terms of revenue. Tmall stands out from its competitors thanks to its strict standards in terms of quality. Indeed on Tmall customer experience comes first.
Tmall Global specifically caters for international sellers looking to reach the Chinese eCommerce market. Subsequently, it offers relatively easy entry into this market, enabling you to sell in China without a Chinese business license or physical presence.
The site does, however, operate a strict acceptance process and brands can expect to wait 4-8 months for approval.
Once accepted though, sellers incur three separate fees; a refundable deposit which can range anywhere between $8,000-25,000, an annual service fee of $5,000-10,000 (product dependent) and a 2-5% commission on each sale.
Taobao: The mother of all Chinese eCommerce platforms
Alibaba-owned Taobao is one of China’s largest eCommerce platforms, with more than ten million sellers.Taobao was one of the first Chinese eCommerce platforms out there and in terms of mobile devices traffic is still one of the leaders. It has almost become a product search engine for Chinese consumers. Unlike Tmall which operates on a B2C model, Taobao operates on C2C, where customers and small entrepreneurs can sell their products directly to consumers in China.
But how does Taobao differ from Alibaba itself?
Unlike Alibaba’s business-to-business wholesale focus, Taobao is focused on selling cheap goods, directly to consumers. Now when it comes to selling on Taobao from an overseas market, it can’t be ignored that it’s no easy feat. In fact, to sell on Taobao you will need to register a company in China or do so through a Chinese partner. Keep in mind that this does not include setting up a post box company or using a virtual office.
So, while it’s not impossible, it is perhaps better suited to companies that have already built up a presence in the country. If, however, you’re only just testing the waters and looking to sell into China cross-border, you’ll probably want to consider the likes of Tmall Global.
JD.com: the biggest Tmall competitor
In 2004, JD opened its online retail platform and quickly became one of the two massive B2C online retailers in China with its competitor the Alibaba-run Tmall. Now, JD.com has over 500 million active customers and is China’s second-largest e-commerce platform.
JD.com has set its standards for online shopping through its commitment to quality, authenticity, and the variety of products it offers, covering everything from fresh food and apparel to electronic appliances and cosmetics.
JD offers a cross-border option JD Worldwide to foreign businesses that have yet to settle in China but still want to reach out to Chinese customers.
Xiaohongshu: social e-commerce business model
Founded in 2013, Xiaohongshu(小红书) also known as ‘The Little Red Book’ and ‘RED’, is a social media and one of the world’s largest community Chinese eCommerce platforms. Over the years, it has grown from a lifestyle-sharing platform to become China’s foremost shopping platform for beauty, fashion, and luxury products. As of 2023, Xiaohongshu is boasting over 300 million registered users and 85 million monthly active users.
Pinduoduo: low-cost e-commerce in China
Pinduoduo, despite its huge monthly traffic, is one of the latest players that has made its way into the Chinese eCommerce world and is experiencing rapid growth. Founded in 2015, Pinduoduo quickly became the fastest-growing tech company in the world.
If you want to export your fresh products in China, you should definitely choose Pinduoduo, as it is the largest agriculture-focused e-commerce platform in China and its business model differs from the competition. It directly connects farmers and distributors with consumers. Pinduoduo has revolutionized e-commerce, becoming a social commerce platform as well as a consumer-to-manufacturer (C2M).
On Pinduoduo, consumers can discover and purchase products from a wide range of sellers. What sets Pinduoduo apart is its social aspect, because users can easily share what they have browsed or purchased with their social network.
They can also invite them to join teams within 24 hours, in order to benefit from lower prices. Thanks to Pinduoduo, consumers can enjoy a group tariff while receiving the product individually directly at home.
It is also important to know that Pinduoduo is very low cost for both consumers and merchants, thanks to its policy of “no commission”. In fact, you will just have to pay a 0.6% service fee to the payment function supplier. Now you might wonder how does Pinduoduo makes profits?
Pinduoduo mainly monetizes through advertising, with 90% of its revenues coming from online marketing services such as affiliation programs, flash sales, and so on. This explains why Pinduoduo really revolutionized Chinese eCommerce platforms, with an innovative marketing strategy, and its low-cost system and fast process.
New online marketplaces in China — Social eCommerce: Douyin flagship store
With more than 730 million daily active users in China as of 2023, Douyin, known as Tik Tok in other parts of the world, is one of the most lucrative and promising apps in China. In March 2021, Douyin launched its flagship stores, available for brand accounts on its platform, marking a major step into e-commerce.
Until now, Douyin was just a way to promote new products and popular items to consumers through short videos and live-streaming. Moreover, it was also possible for companies to send vouchers to their followers and add links to e-commerce platforms such as JD.com and Taobao. However, the novelty of these flagship stores is all about marketing.
Brands are now able to create their own flagship store directly on Douyin, which allows them to increase their conversion rate. This feature also includes the possibility to create campaign banners, send vouchers and recommendations, and offline store information. Consumers are then able to claim these vouchers, which can be used both online and offline.
Besides these online marketplaces in China，here are more Chinese Cross-border eCommerce platforms.
- Suning: Offers both local and cross-border platforms. Ideal for home appliances and electronics brands.
- Kaola: Kaola is China’s largest cross-border eCommerce platform with most of the market share. The Alibaba Group bought the platform.
- VIP: China’s biggest flash sales app. Focuses on beauty and lifestyle product categories.
Above are the most popular online marketplaces in China. If you are looking for ways to sell your products on Chinese E-commerce platforms, do not hesitate to contact Deep Digital China for support.