The Belt and Road Initiative: The Catalyst for A New Era in E-commerce Cooperation Between China and the World

China’s first international Belt and Road Forum is held in Beijing in May 14th-15th, 2017. This summit is considered the largest and highest-level international meeting held in China. As the trading route which clearly has the potential to become the world’s largest platform for regional collaboration, the Belt and Road Initiative (with the full name of The Silk Road Economic Belt and the 21st-century Maritime Silk Road) will further deepen the e-commerce cooperation between China and the world. Because of this initiative, which has been official launched in September 2013, Chinese products have been sold to 54 countries along the route through e-commerce websites, at the same time, Chinese consumers can buy products came from over 50 countries conveniently from the websites such as Tmall and Amazon China.

belt and road

The overseas sales of made in China products will continue to grow.

According to ChinaDivision’s statistics on customer products, the most popular Chinese products in overseas market are mobile phones, digital accessories, auto accessories, sports & outdoor gears, beauty & health appeals, clothing & accessories. Since these made-in-China products are very affordable and quality, and the Belt and Road Initiative played a great role in promoting, from January to April in 2017, there are 7 countries along Belt and Road reached the average year-on-year spending growth of 11 times. The rapidly growing sales attract more e-commerce sellers turned their eyes to Chinese products, sourcing products from China to sell online became a good way of earning money.

ChinaDivision has been providing dedicated order fulfillment service for global e-commerce sellers for years, the customers only need to have the made in China products shipped to ChinaDivision warehouse in Shenzhen, ChinaDivision will take care of the rest. Along with the Chinese suppliers who provide cost-effective products, ChinaDivision is dedicated to makes the global e-commerce easier and succeed together with the customers.

 

More imported products will be sold on Chinese e-commerce websites.

Recent years, the imported products on Chinese e-commerce websites such as Tmall, Taobao, Jingdong and Amazon China (Amazon’s regional website in China) are becoming more and more popular among Chinese consumers. The e-commerce websites have begun to open C2C platforms to let more foreign brands settle in. Take Amazon China as an example, since its shopping region Global Store (designed for Chinese consumers to buy foreign products) started to provide global direct mail in 2014, Chinese consumers have purchased nearly 17 million foreign merchandises. In addition to the Chinese consumers’ enthusiasm for imported products, the Belt and Road Initiative gives a major push to the supply and sales. In the first quarter of 2017, Amazon China’s Global Store sales had risen to 11 times the same period two years ago.

In this condition, ChinaDivision launched the Amazon China fulfillment service to help overseas e-commerce sellers to sell their products on Amazon China Global Store and expand business in China. With the help of the bonded warehouses in Hong Kong, the e-commerce sellers can have their products manufactured in mainland China and still enjoy a higher profit margin brought by the international brand image.

As a result of the catalysis of China’s Belt and Road Initiative, the e-commerce cooperation between China and the other countries is becoming deeper, more and more Chinese products will expand to the world, at the same time, Chinese consumers will be able to purchase overseas products easier. Both of the cases are great opportunities for world-wide e-commerce runners, ChinaDivision is willing to help customers seize the opportunity to succeed together.

How to Sell on Amazon China

Amazon.cn is Amazon’s regional website in China. Two reasons make selling on Amazon China a good choice for the e-commerce sellers who want to expand their business to China (especially mainland China). Reason one, big e-commerce websites like Amazon have accumulated a certain brand approval and a large user group, it can help the e-commerce runner get more traffic with less marketing budget. Reason two, Amazon China is targeted at China mainland market, which is huge for different shoppers. In the year 2016, China has become the world’s largest online retail market, and it’s still growing, there is a research shows Chinese online retail market will grow to $1.7 trillion by 2020.

 

To sell on Amazon China, there are 5 things to consider.

 

Product source. As I said in How to Choose Product Source from Alibaba and Taobao?, there are a lot of cost-effective products in Alibaba. Sourcing products from China and sell them on Amazon.cn can save a lot of logistics fees.

 

Use FBA or not. FBA(Fulfill by Amazon) is the fulfillment service provided by Amazon. There are some preferential policies for the FBA users who sell on Amazon, but there are restrictions as well. According to the restriction, the products should be “ready to be fulfilled” before they are sent to FBA, or Amazon will charge handling fees which are calculated by units. It’s better to consider your labor, time and financial budget before making this decision.

 

Warehouse location. If you decide not to use FBA or you need FBA prep service (ChinaDivision provides FBA prep services including goods receiving, inspection, repacking, labeling,etc), you’d better to choose a warehouse in the right location. With the purpose of saving logistics fee, there are two options for the Amazon China sellers: mainland China warehouses and Hong Kong bonded warehouses. ChinaDivision Amazon China fulfillment service is based in both of the locations, it helps the sellers to deal with the consumer exchange & refund in the mainland warehouse and send packages from Hong Kong warehouses, which achieves the lower taxes and better shopping experiences in the same time. You can see the advantages of using HK bonded warehouses intuitively in this image.

hk bonded warehouse

 

Shipping solutions. After considering the warehouse location, the Amazon sellers have to choose shipping solutions. ChinaDivision Amazon China fulfillment service includes recommending suitable shipping solutions for the sellers.

 

Brand strategy. ChinaDivision provides a series of brand upgrading services, such as labeling the brand name on the packages, printing logos on the boxes, putting inserts, etc. It’s up to the seller’s choice.

 

3 steps to sell on Amazon China.

 

Register an Amazon China seller account. One Amazon account can not be used on different regional websites, the seller can not use the Amazon.com account to sell products on Amazon.cn, so you have to register an Amazon China seller account first.

 

Choose an Amazon China fulfillment partner. ChinaDivision is a full-service Amazon China fulfillment service provider, which can provide all the services, tech support and expertise for the seller who want to sell to China.

 

Start to make sales. With the help of ChinaDivision Amazon China fulfillment service, the sellers can focus only on the core business and make more sales.

Improve Your Business By Using ChinaDivision Amazon China Fulfillment Service

Amazon China (domain name Amazon.cn) is the regional website of Amazon.com based in Beijing, China. Amazon China has a shopping region called Global Store (海外购), which is specifically designed for Chinese consumers to buy global products. Because of the brand influence of Amazon, Amazon Global Store has become one of the most trustworthy places for Chinese people to buy items from abroad.

 

Amazon China fulfillment

 

ChinaDivision Amazon China fulfillment center can improve your business in the following ways:

Amazon China is targeted at Chinese consumers — Give your business a larger market.

Different from Amazon.com, Amazon China is more friendly to native Chinese consumers. The website is in Chinese, all the prices are in RMB. In this case, Chinese consumers are more inclined to buy foreign products from Amazon China, although the same products on Amazon America usually have more attractive prices and more promotional activities. Selling your products on Amazon China can help you expand your business to China, the world’s biggest e-commerce market, and make more sales.

 

The products can be manufactured in mainland China — Lower the budget.

A lot of international brands own their OEM (original equipment manufacturer ) in mainland China. The advantages of having your products manufactured in China are obvious, quality service, lower price, hassle-free logistics, etc. With the help of Chinese OEM and ChinaDivision Amazon China Fulfillment service, the e-commerce sellers can run a business with millions of orders with very low budget, makes it possible to invest more money in brand building and promotion.

 

ChinaDivision can provide a series of value-added services — Create brand awareness in China.

Because of the historical, political and other reasons, e-commerce market in China are very different from the Western. In order to establish brand awareness within millions of Chinese consumers, the e-commerce sellers had better to come up with more strategies to adapt to the whole new market. As the supplement of manufacturer’s service, ChinaDivision can provide more experienced value-added services such as kitting, assembly, putting insert, labeling, customize packaging, etc. The advantages of these services are particularly prominent when the brand owns multiple manufacturers and the products have to be handled centrally.

 

Orders are fulfilled in HK warehouses — Efficient & Hassle free.

After the goods are done processing in the manufacturer’s factory or ChinaDivision warehouse, they will be shipped to the warehouse in Hong Kong. ChinaDivision has developed a deep cooperation with HK Yunda Express, SF Express and EMS, each of them owns multiple bonded warehouses in Hong Kong. Once the buyer purchased some of your products on Amazon China, the warehouse will start to fulfill the orders instantly, and Amazon China will treat your products as “Send from bonded warehouse of HK”.

 

The packages are shipped from HK — Better customer satisfaction.

None of the Chinese consumers will be happy to see the just purchased foreign products are shipped from mainland China, so it’s better to storage the products in HK, this not only saves the logistics fee, but also do no harm to your international brand image.

 

If you are interested in ChinaDivision Amazon China fulfillment service, please send us a fulfillment quote.