How to Expand An E-commerce Business in Holiday Seasons

For e-commerce starters who own small drop-shipping business, the upcoming holiday season is a good chance to expand the business. From Halloween to New Year, it’s the most important months of a year. According to 2015 U.S. Census data, almost 20 % of annual sales for some retailers happen during this period. There are a lot of things can be done to push your business to next level in this holiday season.

how to expand

Send gift packs.

One of the most important steps of expanding a small drop-shipping business is creating a good brand image. Sending gift packs during holidays can convey the image of thoughtful and bond with consumers, which will emotionally make your business distinctive from competitors. Gift packs can contain promotional items such as holiday gifts, gift cards, thank you cards, free samples, coupons, etc. Although consumers will love the gifts, asking drop-shipping suppliers to put multiple items in a package seems impracticable, most of them don’t have the time or professional packing skill. Not only that, the gifts and products may be from different suppliers, and it will be harder to manage the inventory.

This is the situation when the business owners need kitting service. Kitting service means putting multiple products in one box and send them as a pack. It requires packing skills, effective inventory management and optimized manual operation process. Only dedicated fulfillment centers like ChinaDivision are capable of doing them well, especially in peak season during holidays.

 

Order in bulk, keep some products in stock.

It is known that drop-shipping is money saving because it doesn’t require inventory. But no product in stock may become a big disadvantage during the holiday season. When the long awaited big amount of orders come to you during Thanksgiving, Christmas, New Year, etc, stock products will speed up the order processing and give you a head start. Not only that, ordering products in bulk also increases profits because wholesale prices are more discounted. (drop-shipping business) If you haven’t stock enough products for the Christmas sale, it’s still not too late to do it now. ChinaDivision provides 90 days free warehousing service, long enough for every small business owner to be prepared for all the holiday orders.

 

Improve the after-sale service to delight the consumers.

The holiday season is also a good opportunity for small e-commerce business to stand out of the crowd by providing good after-sale services.

Track all the orders. The holiday season at the end of the year is the traditional rush hour of global logistics, shipping delays and parcel lost happen more often than usual.(drop-shipping business) So it’s essential to provide the tracking numbers on time and keep an eye on the shipping status, it helps the business owner to solve shipping problems in the first place and shows the consumers a professional attitude.

Provide easy and fast return/exchange service. Explain the return/exchange process clearly in the return policy, it will really speed up your after-sale process and make the consumers place order without worries.

Sync the data to update the order status on time. As I said above, it’s essential to update tracking numbers on time. In fact, besides tracking numbers, order processing status and inventory changes also need to be updated in real time. It’s better to sync all the data automatically, or you have to spend a lot of energies&time on dealing with numbers.(drop-shipping business) ChinaDivision has developed order fulfillment software for Shopify, OpenCart, Woocommerce, BigCommerce, Magento, eBay, etc. The easy-to-use apps/extensions are good helpers during holiday seasons, which avoids data mistakes and update delay.

3 Key Points to Consider When Sourcing from China

China is an ideal place to have products manufactured if an e-commerce business owner wants to get a high profit margin by sourcing products globally. Compare with US based manufacturers, the Chinese ones are difficult to beat in terms of price and quality. In addition, relaying on the developed manufacture industry, the fulfillment centers in China are more full-functional and affordable. The one-stop fulfillment service they provide can help the e-commerce business owners who source from Alibaba, Aliexpress, taobao or other China based suppliers to push their business to the next level with less hassles. Despite these facts, there are these things to consider if you decide to source from China, otherwise you may find yourself suffering from unexpected financial losses.

 

3 Key Points to Consider When Sourcing from China

 

Language barrier & cultural difference

Don’t underestimate these two problems, they may become the deal-breaker. A lot of Chinese suppliers aren’t willing to (or can’t afford to) hire sales staff who are good at English, since they have tons of domestic buyers at hand. In this case, it will be harder for the supplier to understand exactly what you need. More than that, to be honest, Chinese people value personal relationships more than the spirit of contract. As a result, there are two options lying in front of e-commerce business owners who Sourcing from China, try to use simple words/phrases and confirm every small thing repeatedly, or cooperate with a local agent.

As an one-stop order fulfillment service provider, ChinaDivision helps customers to communicate with the suppliers and ensures that neither the language barrier nor the cultural difference can influence the business. With the help of the sales manager who can speak English and Chinese very well, ChinaDivision customers can enjoy the order fulfillment service as seamless as an in-house fulfillment team.

 

Idea / Design protection

It is sad to say that China is famous for counterfeits and knock-offs as well as its developed manufacture industry, so it’s essential to protect your idea/design from being copied when dealing with Chinese suppliers. Don’t show your whole idea to random Chinese manufacturer you found online, don’t let one supplier manufacture, pack and ship all of your products either. It’s dangerous to let your supplier know how to make and how to sell your products, they can make their own and sell on AliExpress without hesitation. Manufacture parts and assemble in fulfillment center is a good idea. Have the packages and products manufactured in different places and let ChinaDivision do the kitting and packing for you.

ChinaDivision not only provides kitting and assembly service, but also owns the developed warehouse management system(WMS) which is very suitable for integrating multiple suppliers. E-commerce business owners can easily manage the inventory from multiple suppliers with the organized user panel, enjoy affordable near-source fulfillment service and prevent the ideas and designs from being copied.

 

Fraud and scam prevention

Screening suppliers is a headache, being an e-commerce business owner who lives on the other side of the earth, you always have to beware of frauds and scams.

But how?

Send samples. Once you get some winners after the lengthy screening, ask them to send you samples. By comparing several samples, you can choose the most suitable one. Sending samples not only helps to screen suppliers, but also an important way to test the package. Testing whether the product fits perfectly in the package and weighing them helps the business owner to estimate the actual product appearance and shipping costs.

Have every batch of products inspected. Getting a satisfactory sample doesn’t mean all of the products will be equally good. A lot of e-commerce business owners get scammed because the samples are good, after ordering a lot of products from the supplier and waiting a long time, they end up getting a great pile of poorly made products at the door step. So it’s important to have every batch of products inspected. ChinaDivision helps customers to inspect the products and take photos, the e-commerce business owners can see what the products look like before the money/time consuming global shipping. This really minimizes the risk of getting scammed.

Five Problems e-Commerce Sellers May Encounter When Drop-shipping from Chinese Suppliers

Sourcing products from Alibaba and selling them on eBay, Amazon or other shopping websites is a proven e-commerce business model which brings considerable profits. Being e-commerce starters, a lot of online store owners choose to drop-ship from China directly. It sounds a convenient and money saving way to start an e-commerce business, but the business owner may find themselves suffering from different kinds of unanticipated problems.

dropshipping

Unhappy consumers. Some consumers don’t like the ship from China products, or products with Chinese letters written on the packages/shipping labels. They presume that the products made in China or ship from China must be in poor quality, which is a sad thing to say for a Chinese. On the other hand, even for the consumers who have no bias against Chinese products, the fact that an online store uses drop-shipping may generate a low level impression and make the consumers place less trust in the store.

An e-commerce brand has to show its capabilities and expertness to the customers, no matter it’s been established for a long time or not. With limited time and labor, the e-commerce owners can outsource this part of job to ChinaDivision, if he/she decides to not let the customers know that their products are made in China, ship from China or drop-shipped. ChinaDivision can provide the professional packing and special shipping methods that will not show any sign of shipping from China.

 

Unprofessional packing. Drop-shipping the products with complicated SKU(such as clothes and accessories) can be tricky, since the suppliers in China are in responsible for picking, packing and shipping to the consumers, once they made mistakes or being unprofessional, the consumer will receive the wrong products. Some online sellers who drop-ship even give up selling these products just to prevent the possible unprofessional packing and high mistake rate.

The drop-ship suppliers in China have to deal a lot of orders every day, but their main task is still to sell their products, drop-shipping is just their supporting service. The e-commerce business owner who has concerns about the drop-ship suppliers’ expertise in packing and shipping can try to seek help from ChinaDivision, as a dedicated order fulfillment company in China, ChinaDivision can do the same job more professional.

 

No branding. Brand building is a long process, it needs persistent and detail oriented work. The online sellers may find it tricky when sourcing products from drop-ship suppliers in China. The consumers may receive products with no logo, or worse, other brand’s logo. Ask the supplier to put the products in customized packages may be easy, but there are more an e-commerce business owner can do. You can see the branding tips by reading this article Branding Tips for Sourcing from Alibaba

 

Poor products quality. Since the store owners don’t have the chance to inspect the products before shipping, the consumers may receive very cheap-looking products. Although the online store owners always order small quantity of samples before listing the products in the store, the products of different batches may have different quality or texture. It is difficult to do the quality control strictly if the seller can’t inspect the products.

If an online store owner has trouble to find a drop-ship supplier he/she can trust enough, he/she can outsource the product inspection to a third-party. ChinaDivision will receive, count and check with the orders before putting the products on shelves, and inspect the products again before shipping them out.

 

Long shipping time. Long shipping time is the problem that the online store owners complain the most, some of them even say that drop-shipping means “takes 30 days to deliver or costs £30 for quick delivery”. This situation has been improved since a lot of drop-ship suppliers on Alibaba start to support ePacket shipping. But what if your supplier only supports the slow shipping methods or you want an even faster one?

ChinaDivision can provide more flexible shipping methods than the drop-ship suppliers, let the supplier send the products to ChinaDivision warehouse in Shenzhen, China, and ChinaDivision will recommend the most suitable shipping method according to the online store owners’ needs.

Five Ways to Avoid Competing on Price with Other E-commerce Retailers

Competing on price alone is one of the worst business strategies an e-commerce retailer can come up with, it damages the brand, makes everyone suffer from little profits, and guess what? The cheaper you sell your products, the lower price the consumer will look forward to, its bottomless. Here are some tips for e-bay/Amazon/Shopify or other e-commerce sellers to avoid price war.

Five Ways to Avoid Competing on Price with Other E-commerce Retailer

Find unique product source. Sign the exclusive supply contract with your supplier, cooperate with the independent brand owners, design the products by yourself… Try everything to make sure your product source is unique. If the consumer can’t find any one else sell the same products, they can’t compare prices. This is the most basic method to avoid competing on price.

 

Differentiate your products with powerful brand strategy. If you sell hot-sale products, there are still ways to differentiate your products. The best way is to pay more attention to marketing and branding. For the global e-commerce sellers, it may be tricky to transfer the brand strategies to reality, since both the suppliers and consumers are far away. ChinaDivision brand upgrading service is here to help. Print logos on the boxes, use customize packages, put catalogs in the packages, mark the brand name on the shipping labels… What you need is what we will provide. ChinaDivision also provides gift fulfillment service to help the business owners to send holiday gifts to the customers and VIPs.

 

Choose the dedicated fulfillment solution. If you want to differentiate your products, which is the key to avoid competing on price, DO NOT DROPSHIP. Dropshipping may be the easiest way to get into e-commerce business, that means almost anyone can do it. I guess none of the dedicated e-commerce sellers want to be equaled to the amateurs and copycats just because they also use dropship. The experienced order fulfillment company like ChinaDivision provides dedicated fulfillment service with more advanced service items compare to dropshipping. Thanks to the multiple years of experiences in manual operation optimization, inventory management and global shipping, ChinaDivision can provide the effective and tech-oriented fulfillment service including easy to use user center, multi-platform fulfillment integration and flexible shipping solutions.

 

Pay attention to your service ranking and other metrics on the e-commerce platform. The e-commerce websites like eBay and Amazon use rating system to regulate the sellers, the seller who gets more positive item reviews, less closed orders and lower refund rate will get the better rating. A better seller rating will make your listings rank higher in the website and the consumer will find your products first instead of your competitors’. More than that, people are prefer to buy from a good-rating seller even though the products are more expensive.

 

Provide more than products. Why people still go to the Apple Store when they can buy an iPhone online conveniently? Because the Store provides extra services and better shopping experiences. An online store may have a lack in shopping experience compare to those fancy shopping malls, but there is still room for improvement. Beautiful web design, thoughtful customer service, shorter shipping period, door-to-door delivery… provide as many supporting services as you can instead of just selling the product itself. What you give out today can pay a certain return soon.

ChinaDivision Attended the First Anniversary of ESCE (Edinburgh Center) and Assisted with Exhibit Transportation

Edinburgh-Shenzhen Creative Exchange (ESCE) is a creative exchange program implemented on the basis of cooperation between municipal governments of Shenzhen and Scotland. It is aimed to enhanced cultural collaboration and increased exchanges between both nations.

On September 7, 2016, Edinburgh center embraced for its first anniversary. (cross-border e-commerce) The project team of ESCE (Shenzhen Center) arrived at Britain successively to hold a series of industrial activities at the Edinburgh Center. Senior leaders of ChinaDivision attended the anniversary along with the delegation led by Mayor Xu Qin and Yao Ren. Besides, ChinaDivision also assisted with the exhibit transportation to Scotland.

ChinaDivision CEO Ethan Chang (left) with Mayor of Bao’ao District -1

Xu Qin, Mayor of Shenzhen (second from right) shook hands with Ethan Chang, CEO of ChinaDivision (second from left)

 

ChinaDivision CEO Ethan Chang (left) with Mayor of Bao’ao District -2

ChinaDivision CEO Ethan Chang (left) with Mayor of Bao’ao District, Yao Ren (right)

 

ESCE (Edinburgh Center) is located at the creative exchange hub as well as city council of Edinburgh, which often receives important government officials and famous enterprises from all over the world. Thus, ESCE decides to build an exhibition area in Edinburgh as a window to show creative products and corporate image of Shenzhen.(cross-border e-commerce)

During September 5 to September 15, senior leaders of ChinaDivision also visited London, Edinburgh, Oxford, Cambridge and York with the delegation led by Xu Qin and Yao Ren. They not only had a knowledge of British culture and technology innovation, but also paid a visit to British senior government officials, business elites and top university professors.

It was a great honor for ChinaDivision to meet elites in different areas and share their perspectives of the global e-commerce. (cross-border e-commerce) ChinaDivision will spare no efforts to meet the upcoming opportunities and challenges.

Shenzhen delegation at ESCE (Edinburgh Center)

Shenzhen delegation at ESCE (Edinburgh Center)

 

What Marketing Strategies Can Be Learned from the 2015 eCommerce Benchmark Report by Yotpo?

Even the most forward-thinking businesses struggle with marketing in today’s fast paced digital world. In order to grab hold of your marketing, have you ever asked yourself the following questions:

1. Do I have a healthy distribution of traffic?

2. Are my traffic channels bringing quality, engaged traffic?

3. Mobile vs. non-mobile traffic, which should be more focused on?

Here at ChinaDivision, we share and analyze a report by Yotpo in 2015 to help find out the answers. It was based on 65 million orders and two billion dollars in transactions across over 120,000 eCommerce stores. The report was designed to help online merchants adjust their marketing strategies according to the latest survey and stay unbeatable in the competition.

 

  • What Are My Traffic Channels? How Well They Work?

Traffic broken down by source

Direct, search and referral traffic were overwhelmingly the dominant traffic sources, which respectively accounted for 40%, 34% and 10%, followed by social traffic of 6%, according to the pie chart above by Yotpo in 2015.

Average seconds on site per visit

Although social traffic only made up a small portion of overall traffic, they brought high quality and engaged traffic. Instagram was the winners in terms of longest time on site, followed by email, referral and direct traffic.

From the above data we can gather that direct marketing such as email or one-on-one techniques, combined with social marketing will be important focuses in the current year.

 

  • Mobile vs. Non-Mobile traffic, Which Is More Workable?

Mobile VS None mobile

According to the data in 2015, only 38% of traffic came from mobile devices, while non-mobile devices placed the overwhelmingly dominant role of 62%.

Distribution of mobile vs non-mobile page Views

The bar graph showed very clearly that when looking at percentage of page views from a mobile device vs. a non-mobile device, some social networks such as Instagram and Facebook leaned heavily in mobile devices, while LinkedIn and YouTube were in the opposition direction, having an enormously high percentage of desktop visits. On the other hand, page views for email from mobile and non-mobile devices were almost the same, but clearly adjustment should be made to optimize the email content for a better reading experience through mobile devices.

2016 will bring adjustments of specific campaigns. For example, LinkedIn will be more focused on desktop visitors, while Facebook will be built more user-friendly for mobile users and more ad campaigns will be invested.

 

What Does This Mean for You?

Mobile and social are changing ecommerce, but mobile vs. non-mobile traffic varies majorly depending on source – so make sure you’ re measuring appropriately.

In 2016, marketing is going to be more specific and more direct than ever. Online merchants need to define goals based on traffic source and mobile or non-mobile devices.

 

PayPal Senior Leader Vince Lee Visited ChinaDivision

On May 4, 2016, Head of SMB, China Director of PayPal – Vince Lee and his assistant Chris visited the headquarter of ChinaDivision. Founder and CEO of ChinaDivision Ethan Chang and Head of Order Fulfillment Michael Chan cordially received the PayPal representatives and opened a discussion about cross-border e-commerce and the future cooperation with PayPal in terms of payment.

Paypal ChinaDivision

PayPal representatives visited ChinaDivision (from left to right: Michael Chan, Ethan Chang, Vince Lee, Chris)

At the beginning of the meeting, CEO of ChinaDivision Ethan Chang gave a brief introduction of the company’s development to the Paypal representatives. ChinaDivision is a B2B brand of CNstorm Co.,Ltd, who is dedicated to sourcing and shipping products to overseas Chinese globally, and obtained the Angel Investment by Shenzhen Creative Investment Group in 2014. As a B2B brand of CNstorm, ChinaDivision is a leading provider of crowdfunding and e-commerce order fulfillment, recognized for China product sourcing, China warehousing and worldwide shipping from China services. For years cooperation with PayPal, ChinaDivision won high affirmation of Mr Vince Lee as an enterprise with innovative spirit and move with the times.

Current Situation of Cross-Border E-commerce in China

During the meeting, both sides had a discussion about the current situation of cross-border e-commerce. It is believed that 2016 is till a time of challenges and opportunities. Traditional retailers, domestic and oversea e-commerce giants, start-ups, logistic service providers and distributors have all joined this battle trying to get a share of the cake. An analysis of the current situation is helpful to forecast the future and make plan for the next step of a company.

a) China is leading the way as production center and consumer market

Nowhere is the rapid expansion of e-commerce more apparent than in Asia. China is leading the way, shedding its identity as a production center and emerging as a burgeoning consumer market, with an increasingly affluent and populous middle class eager to embrace online technologies and chase for the developed world’s consumption styles.

As a production center of the world, there is an increasing number of e-commerce merchants choosing China as product sourcing destination for their e-commerce business. China manufacturers or Chinese suppliers have become cross-border online merchants’ preferred business partners. A recent survey shows that cross-border e-commerce’s market size hit 4 trillion in 2014 and accounted for 15% of the total import and export trade volume of China. It is estimated that it will account for 23.1% by the year 2017.

b) Spread of mobile devices brings huge potential customers

With the spread of smart phones and tablet computers, more and more consumers would like to shop by their mobile devices. Mobile devices make it possible to check orders and shipping status anytime. Affluent and well-educated young people make up the majority of cross-border online shoppers and the cross-border online shopping features at low frequency and higher spending per order compared to domestic online shopping.

Challenges that Exist with Cross-Border E-commerce

Although the whole situation is favorable for cross-border e-commerce, there are still some challenges that hinder and constrain its future development, reflected in the following four aspects:

1. Low efficiency of customs

Its is unavoidable to face customs supervision and taxation during e-commerce transactions. Dissonant customs practices create significant uncertainties for shippers, which greatly reduce the efficiency of customs clearance.

2. Complicated shipping cost

Logistics includes warehousing, picking, packing and shipping. It places the role as a bridge between the seller and the buyer in cross-border e-commerce. However, international shipping options are complicated by VAT, customs charges and others more. Shoppers will be discouraged by the price opacity.

3. Unreliable transit time

Consumers want shorter, more precise and more reliable shipping for their goods. However, some parcels are failed to be tracked or the tracking information lags the actual delivery. In this circumstance, the unreliable transit time constitutes an obstacle in cross-border e-commerce.

4. Risky international payment

As the core of cross-border e-commerce, e-payment involves safety of funds transfer. For one thing, in the process of information transmission, payment information will be loss due to a system failure. For another, there are lawbreakers who use computer technology to steal payment information illegally.

When people are deciding whether to use cross-border payment, they are subject to safety, rates, efficiency and personal payment habits. Among all of this, safety is the most important factor. According to a survey conducted by PayPal, Vince Lee said, more than 40 percent of consumers believe that “the premier security system” is the main reason why they firmly use PayPal as the cross-border e-commerce payment tool, while 80 percent of consumers finally complete their cross-border transaction because of the trust of PayPal’s Buyer Protection Policy. As PayPal’s long term business partner, Ethan said that ChinaDivision will continue to work with PayPal to provide our customers with a better payment experience and create a more safety payment environment.

Innovative Business Model of ChinaDivision

It is based on the current situation of cross-border e-commerce and the challenges it exists that ChinaDivison creates a new business model – providing China sourcing, warehousing and shipping services to e-commerce businesses. During the meeting, Ethan and Michael shared this new business model to PayPal representatives.

As the world’s factory and production center, almost anything can be bought in China with multiple choices and fair price. But due to languages and time difference, it may not be such an easy thing for most online sellers. Considering the importance of inventory souring, ChinaDivision makes the most of its favorable location in Shenzhen, China. Applying tactical local sourcing strategies and collaborating with China-based factories and industry alliances, ChinaDivision is skilled in managing Chinese suppliers and has abundant high-quality sourcing resources at command, so with millions of products manufactured in China we can get you connected and assures product quality with competitive prices.

  • China warehousing

When it comes to start an online business, a variety of fixed overhead could have discouraged many people. Renting a warehouse, purchasing facilities, hiring workers etc, all this are costly and sometimes are wasteful when it happens to be off-season. ChinaDivision provides China warehousing services, allowing activities such as inventory receiving, repacking, weighing and quality check to be carried out on products before shipping to the customers. What’s more, free warehousing for 30 days is offered, no minimums, no set up fees, thus start-ups and small size business will not be blocked out.

  • China shipping

Just as mentioned above, with the emergence of cross-border e-commerce, traditional retailers, distributors, logistics service providers etc., all join a battle for the share of this cake. However, as an order fulfillment agent in China, ChinaDivision not just serve clients in one way, but take the whole situation into account, thus clients in ChinaDivision can enjoy a one-stop solution, from warehousing to shipping. With the good connection with famous international couriers, ChinaDivision ships goods worldwide to customers fast, easy and affordable. To enhance service of delivery, ChinaDivison also has a system that allows any order to be tracked in real time. This contributes to convenience and efficiency thus leading to a great customer experience.

At the end of the meeting, Vince Lee kindly asked the problems that ChinaDivision faced when using PayPal and opinions for its further improvement. Both sides also had a pleasant discussion about the future cooperation details. As one of the strategic partners of global payment leader PayPal, ChinaDivision is very honored to be chosen and visited by the top of PayPal and will continue the good cooperation with PayPal and other payment giants.

ChinaDivision CEO Ethan Chang Attended PayPal 2015 China E-Commerce Conference

September 17th, the online payment leader PayPal held the fourth annual Cross-Border e-commerce Conference in Shenzhen, China, bring together more than 800 large and small sized foreign trade companies, government representatives and industry expert to explore the new market of global cross-border E-Commerce trends, new opportunities, and jointly promote the growth of China’s Cross-border E-Commerce sector. PayPal launched the conference “PayPal Biz+” innovative solutions, aimed at B2B2C (supplier companies → foreign companies → overseas consumers) potential export model, leading E-Commerce supplier upgrades, sharing global opportunities.

List of Speakers at Paypal Conference

ChinaDivision founder and CEO Ethan Chang, a “dark horse”, was invited to participate the conference and share thinking about the cross-border E-Commerce development on the conference:

The impact of mobile cross-border E-commerce

Cross-Border E-Commerce business presents three major trends: mobile, social and vertical. “breakthrough” has become a hot word in the field of mobile E-commerce. As to E-Commerce companies, they notice mobile E-Commerce is the trend of future, so does ChinaDivision. Ethan Chang highlighted 4 key characteristic of mobile shopping: First, the consumers’ shopping habit has changed and recommendation is the king; The second is that the consumers use fragmented time to browse, and easy to make a purchase; the third is vertical integration, vertical platforms are easier to win customers. So we mainly share products on mobile, pushing attractive products to the home page. In western business theory there is a famous saying: Numbers never lie, – we found that the growth of mobile orders have not grew in the same pace with users and revenue form mobile devices, conversion rate on mobile is still lower compare to PC. Users’ feedbacks gave us a very important message, “Mobile devices make it possible to check orders and shipping status anytime, anywhere. But speaking of placing orders, I prefer PC. Because it is easy to do it on computer, the screen is larger, I see the products more comfortable. ” So we think mobile can’t replace PC in the short term, But mobile ecommerce is really a primary growth factor for cross-border E-Commerce.

CEO of ChinaDivision (second from left) at the meeting talked about how cross-border E-commerce companies use government policy of Shenzhen

Recently the government introduced a number of rules and regulations, including:
Establish the integrity mechanism, increase industry subsidies, help cross-border corporate in financing, establish the FTA, reduce tariffs and simplify the approval workflow and so on. These policies has reduced the cost of cross-border goods, accelerated flow of goods, on the other hand, as the country’s policies encourage companies to target overseas markets which is indeed a reassurance to them. ChinaDivison welcome these policies, because they would ease the pressure on cross-border E-Commerce industry. We like this saying: fall in love with government, but do not marry the government. Because enterprises’ development more rely on their own. Based on our experience of cross-border B2B platform ChinaDivision, we think completive edge of cross-border E-Commerce companies mainly lies in the low labor cost and information asymmetry. But with the rise in labor costs, fiercer and fiercer competition, Branding will become a trend in the future export E-Commerce. Import E-Commerce has huge potential. Chinese government encourages its development; E-Commerce Export market is very large, national policy encourages it. If you want to make best use of national policy, the cross-border corporate business of import and export need to develop together. So we launched our B2B business ChinaDivision in order to help cross-border E-commerce companies to build their brand by providing exc fulfillment service.

List of Speakers at Paypal Conference

VIP guests posed for pictures (from left of the second: ChinaDivision founder Mr. Zhang Lisheng)

The impact of exchange rate on cross-border E-commerce and how to response

When the RMB appreciates, import business has absolute advantages, while devaluation happens, exports do have a great advantage. Facing exchange rate, after five years we may not see any business only do export or , or import. Those who survive in the cross-border E-commerce are the ones do both export and import. In two cross-border E-Commerce dispatch model, “first trip, overseas warehouse” model will be greatly affected by the exchange rate, because of the need to store goods in large amount, “Foreign Direct Mail” model can stay calm. It mainly involve non-standard products based, consumers are less sensitive to price, and more likely to compare overseas direct mail price with the domestic counter. Overseas direct mail operation is also more flexible, exchange rate effect can quickly be reflected in commodity prices, but has little effect on the purchase. So overall, changes in exchange rates hardly impact overseas direct mail. As long as the appropriate increase in foreign exchange reserves, targeted use of financial products to hedge the exchange rate, so that to reduce the affect of exchange rate to a minimum. If 2014 is the first year of cross-border import E-Commerce, then with the sharp depreciation of the RMB and introduction of the policy on cross-border export ECommerce,then 2016 is expected to become China’s first year of cross-border export E-Commerce.

ChinaDivision was invited as guest speakers of the conference. It is the reflection of long-term close cooperation between Paypal and ChinaDivision, as well as PayPal’s affirmation to ChinaDivision’s achievements.

List of Speakers at Paypal Conference

In July, China Southern Region Leader of PayPal Sean had visited the headquarters of ChinaDivision. ChinaDivision’s efforts and achievements are much appreciated by Paypal on constantly optimize and improve the user’s payment process, refund experience and so on. ChinaDivision will continue cooperate with PayPal, Alipay and other big names, hoping to better serve our customers, and lay a solid foundation for global branding.