You may wonder, how much would it cost to enter major e-commerce platforms in China? Here’s an illustration with apparel and clothing category.
In the example of clothing and apparel, in Tmall, it would cost 100,000 yuan (USD 16,218) for security deposit, and 60,000 yuan service fee (USD 9,730). Commission charge is 5% of sales revenue.
Security deposit is a certain amount of money which China online shops need to payHow to B2C platforms, ranging from 5000 to 100,000 yuan (USD 811 to USD 16,215 ). Security deposit is used to prevent e-shops from cheating consumers. Once the fraud happens, B2C platforms would use the deposit money to compensate consumers. And service fee is the annual B2C platform service fee, it is paid monthly. Commission is the percentage of each trading charged by the B2C platforms. The total cost of entering a B2C platform is the sum of security deposit, service fee and commission.
Jingdong’s security deposit is 10,000 yuan (USD 1,622), and service fee is 6000 yuan (USD 973), with a 8% commission rate. Dangdang is the same as Jingdong. Yihaodian costs even less, 5000 yuan(USD 810) security deposit and 3600 yuan(USD 584) service fee with a 6% commission rate. QQbuy costs 20,000 yuan (USD 3,244)for security deposit, 6000 yuan (USD 973) service fee. Commission is 5%. Amazon doesn’t charge security deposit and service fee, but charge a 10% commission.