CHINESE CURRENCY RECEIVING ACCOUNTS = CHINESE E-COMMERCE MARKET MORE ACCESSIBLE TO FOREIGN SELLERS

China is the biggest, fastest-growing e-commerce market on the planet. Since 2013, China has consistently ranked first in the world for e-commerce growth, revenue and sales, ahead of the US, UK and Japan. In 2015, China’s e-tailing sales hit $589 billion, and Forrester predicts that the $1 trillion line will be crossed as early as 2019.

                      NOTE: Stats for China refer to mainland China only. See the whole infographic from Remarkety here

Understanding the Chinese market

As of mid-2015, 50% of China’s population are active internet users. With a growing population of approximately 1.35 billion, that translates to 668 million web surfers. What’s astounding about the online user base is that in 2015, an estimated 400 million people made online purchases of goods and services. What’s more, the average amount spent per buyer was $1,762 per year in 2015. Overwhelmed by the statistics? Sorry…to put it simply, the Chinese population is doinga ton of shopping online, and spending a lot while doing so.

Immense potential for foreign sellers

International shoppers and sellers alike are familiar with Chinese cross-border marketplaces like Alibaba and Wish selling Chinese products to buyers all over the planet. What many don’t realize, however, is that Chinese buyers have developed a strong taste for foreign products as well, and the cross-border sales are now going in to China just as quickly.

Fueling this sudden influx is the growth of the Chinese middle class, which is gaining more purchasing power and showing a clear preference for well-established Western brands. Chinese buyers are willing to pay higher prices for established, high-quality products from globally-recognized brands. During Singles Day in 2015, one of the busiest Chinese e-commerce shopping days of the year, Alibaba Group Holding Ltd. reported that 33% of buyers purchased internationally branded items.

An added benefit for foreign sellers is that China does not currently collect sales tax for cross-border purchases, and customs taxes have been significantly reduced for many product categories. This added benefit makes foreign sellers and marketplaces even more attractive to Chinese buyers, without the added worry of hidden costs at sale or upon receipt.

Amazon China – forging a steady path to Chinese buyers’ hearts

Amazon, international retail giant, has worked hard to establish itself as a top marketplace in China. As one of the first foreign marketplaces allowed to do business in China, is has faced strong competition from local powerhouses Alibaba and JD.com.

Thought the competition is fierce, Amazon brings to the table an internationally-recognized name, associated with high-quality products and a reputation for strong customer service. Amazon has a relative advantage with its global flair, and Chinese buyers seeking foreign brands are now more likely to shop for them on Amazon than on other sites.

Recognizing the demand for branded foreign products in China, Amazon.cn launched its Global Store in August of this year, enabling its customers to shop for products from all around the globe. Just last month, Amazon announced it is launching its Prime membership services in China, which will include free cross-border shipping, making it even easier for Chinese buyers to receive foreign goods.

Amazon’s cross-border sales into China are expected to grow substantially as a result, creating an abundance of opportunities for beginning and experienced sellers to break into the Chinese market through a familiar platform.

Chinese currency receiving accounts close the currency gap for foreign sellers

Payoneer’s Global Payment Service will soon offer a new service to users: access to international Chinese currency receiving accounts in China. This service is critical to sellers who want to set up shop in marketplaces like Amazon.cn and VIP.com, where sellers are required to have a local bank account within China for receiving funds.
With this new service, Payoneer users selling on these sites will be given access to a Chinese currency receiving account in China; sites like Amazon.cn can pay sellers directly as a local bank transfer, and funds will be loaded automatically to sellers’ Payoneer accounts for FREE.

Once the service is available, you too will be able to diversify your sales channels, sell easily on Amazon.cn’s Global Store and appeal to the newest Amazon Prime members.