Chinese eCommerce Success-Tmall

Tmall.com is the primary choice of Chinese online consumers becomes an all-in-one and full-featured ecommerce platform. China’s strongest leader Tmall operates it’s services in China, Hong Kong, Maccau , Taiwan by Alibaba Group. It is a major platform for local Chinese and international businesses to sell 100% genuine goods, premium quality & brand, high-Speed delivery , Product assurance and guarantee of returns to consumers in mainland China. The Giant online shopping platform “Tmall” made record with 2.85 Million transactions per minute in 2014 has been documented 3 times growth than last year. Total sales on No 11, 2014 was 57.11 billion RMB ( among which 24.33 billion RMB is from mobile end).

Tmall is appropriately named, a vast collection of individual stores in one place and empower the vendor in building loyalty, and providing full transparency to it’s consumer as well as brand premiumness. Tmall make an ever-more compelling case for China online sales than a stand-alone website.

Tmall Store Format

Tmall has 3 different store format :

Why Tmall?

From Merchants point of view

-Tmall allows local merchants or retailers to present products

-Brands have opportunities to promote their products through largest online platform where 80% of Chinese buyers buy products

-Merchants get opportunity to promote their products in Tmall official promotional campaigns, double 11 etc.

-Merchants will have access to transaction management, promotional management, logistics tools, products released, shop decoration and management, customer service management etc.

-Highly satisfied store will get competitive store rates from shoppers depending on the product quality, delivery speed, efficiency of store or customer service etc.

Customer’s experience on Tmall

-Tmall gives facility to it’s buyers to ship orders within 72 hrs after placing orders.

-Buyers will have full opportunity to return the product & get refund within 7 days of receiving products

-Shoppers can search products and get competitive result related to the search

-Users can have complete information of products in the detail page and can communicate with Tmall customer team

-Buyers get facilities to pay through their own Alipay account

CHINESE E-COMMERCE MARKET WITHOUT LEGAL RED TAPE

At the end of last year, the Alibaba Group launched its new platform: Tmall Global that enables foreign businesses to directly sell goods to Chinese online shoppers. Allowing them to save some time and money by avoiding legal regulations difficulties since foreign merchants doesn’t have to have a real presence in China.

The Tmall Global is the international version of Tmall part of Alibaba’s International B2C Department. The new website ensures Chinese online shoppers that they are purchasing internal goods which quality is guaranteed and from foreign companies only, with facilities of domestic return.

As Tmall in mainland China takes a 2% to 5% commission per transaction, Tmall Global will apply a 3% to 6% charge on each sale. The fee applied for consumer protection on Tmall Global will be 25,000USD, a lot more expensive than the one required fot the mainland China Tmallthat is between 30,000rmb to 150,000rmb, however this fee is applied just once. As for the yearly technical maintenance fee it will also be more expensive for overseas merchants on Tmall Global than for domestic merchants on Tmall with 5,000USD or 10,000USD for the first one and 30,000rmb to 150,000rmb for the second one.  Foreign merchants therefore have to support more charges than the domestic ones. However this balances with the fact that they will save time and money not having to register their brand in mainland China.

Alibaba found the perfect compromise between the growing demand of Chinese online shoppers to buy quality international goods and the will of overseas businesses to sell directly to the huge Chinese consumers without having to register in China. Since the opening of Tmall Global, More than 140 foreign companies already opened an online shop on the platform.