How To Open Tmall And JD.com Stores In China

How To Open Tmall And JD.com Stores In China Market EntryE-commerce Jul 12 Written By Marek Matura This guide described the process of opening ‘China-based’ Tmall and JD.com stores. For ‘cross-border’ stores please read our guide dedicated to this type of stores here.Tmall and JD.com are the two most dominant e-commerce platforms in China. Together, they account for 85% of China’s e-commerce market.It then comes as no surprise that every company serious about selling to Chinese consumers should consider opening their store on either or both of the platforms. Tmall and Taobao, both part of one ecosystem, are more than twice the size of JD.com. If a company wants to open a store on only one of the platforms, Tmall is the obvious choice. Store locationBoth Tmall and JD.com operate two separate sales platforms: China-based and Cross-border stores.China-based storesSimply called Tmall and JD.com (or Jindong in full)Store registered using a Chinese businessTypically done by local distributor, agent, subsidiary or agencyImport and VAT taxes have to be paid before goods enter China Certain goods have to be certified to be sold on the Chinese market (eg. CCC and FDA certifications)Require trademark in ChinaCross-border storesTmall Global and JD WorldwideStore registered using a foreign business licenseGoods shipped to customers from abroad or a bonded warehouse in ChinaSpecial tax regime with lower tax ratesTaxes paid only after goods are purchased by customersGoods don’t have to be certified in ChinaRequire trademark in home country of the applicant only This guide will describe the registration process for a China-based Tmall store. While we focus on Tmall, the process and requirements are nearly identical with JD.com. Tmall operates 4 types of storesFlagship storeOpened by trademark owner or distributor/agent with exclusive authorization. Store sells only one brand of products.Exclusive storeOpened by trademark owner or distributor/agent with non-exclusive authorization. Store sells only one brand of products.Specialty storeAlso referred to as ‘franchise store’. Store consists of two or more brands under the same category.Marketplace storeMultiple brands under service type trademark.Foreign companies interested in selling to China are typically the brand owner. As such, flagship store is the default choice offering the highest level of exclusivity. This guide will focus on the process of opening a flagship store from now on. RequirementsBusiness license of a Chinese company registering the storeGoods sold in the store must be in the business scope of the registering company.Some categories make requirements on the minimum registered capital.Scan of ID card or passport of the legal personContact information of the legal personGeneral taxpayer qualificationChinese trademark registrationSome categories accept notice of acceptance of trademark registration (ie. filed application for trademark)Some categories require a certificate of trademark registration (ie. registered trademark)Product certification (if applicable)Pictures of samples, including test reports, Chinese labels and manuals and other relevant informationExclusive authorization letter with power of attorneyAdditional materials can be requestedTmall groups products into categories and requirements differ slightly by category, For example, selling drugs and cosmetics requires store owner provide lab results and FDA certification. Full up-to date list is available on Tmall’s website here. Online applicationSubmit required documentsSelect store type and categoryFill in brand informationFill in company informationPick store name Picking nameThe naming regulation strictly prescribes the following:Store name: Brand name from trademark registration + (Category) + “Flagship store”Domain name: English or Chinese brand nameFull list of requirements on Tmall’s website here. Audit3-6 workdaysBrand evaluationTmall will assess the strength of the business and the brandBrand positioning: style, audience and unit priceBrand management strength: the establishment date of the brand, offline operation (stores, turnover in recent year, foreign trade and export volume and otehr), operation on Taobao or other platformsBrand characteristicsCorporate strength: factory, enterprise awards, operation plans and other informationContent of Qualification AuditValid qualificationThe scale meets the entry requirementsValid authorizationComplete production, business scope and product safety qualification, complying with the requirements of the state administrative lawDispatch & Warehouse: Any warehouseOne Chinese company can open one Taobao store and one Tmall store with its business license Basic set upSet a passwordFill in mobile phone number and email addressAlipay real-name authentication (link)Complete the store informationPay deposit and annual service fee within 15 daysFee structure View fullsize Deposit50 000 - 100 000 CNY (amount varies by category)Paid in advanceIs refundable in the case store is close downIts purpose is to provide refund to customers automaticallyAnnual fee10 000 - 60 000 CNY (amount varies by category)Paid in advanceIf store meets revenue targets set by Tmall, fee will be partially or fully refundedSales commission2-5% (amount varies by category)Deducted automatically with every purchaseAdditional 1% charged by Alipay (payment provider) with every purchaseFees charged by JD.com are largely identical.Full fee structure available on Tmall’s website here. Store design and set upStore homepageProduct pagesWarranty and returnsStore structureDesignate logistics providerSetup customer serviceUpload products, images, prices, available stock and other relevant information Chinese e-commerce is different. While western e-commerce platforms aim for simplicity, stores on Tmall and JD.com are expected to provide intricate designs. Every product page has to be individually designed in PhotoShop (or similar) by a professional designer in order to keep up with the competition.Texts, images and videos are all expected to be presented in a way the Chinese customers are used to.This process can be tedious for new brands to China and we recommend starting preparations well in advance to avoid launch delays. LaunchEnsure store meets minimum stock requirements (link)Follow the steps in the video below OperationEvery store automatically receives assessment score based on its performance. Some of the key performance indicators are sales, customer service response time, positive/negative customer reviews, indicated stock, participation in sales events and ad spend. Stores with poor score will be notified by the platform, but unlike cross-border stores, the risks of store being forcefully closed down are minimal. ChinaMarketingTmallJD.comE-commerceSalesMarket Entry Marek Matura Previous Previous Leveraging WeChat Newsletters for Business Communication Next Next How To Open Cross Border Tmall and JD.com Stores