China’s cross border eCommerce is booming, and the opportunities for foreign brands are boundless. We introduced Alipay ePass previously, which is a new service creating a direct path to 800 million or so Chinese consumers. Today we will follow up by explaining why you should choose Alipay ePass for your cross border eCommerce in China.
1. Big Opportunity is Calling in China
For the past 2015, China has become the largest eCommerce market around the world: China’s eCommerce retail sales are expected to increase by 42.1% to US$672.01 billion, accounting for over 40% of the global eCommerce retail sales.
Meanwhile, China’s online shoppers are embracing cross border eCommerce as well. 36% China’s online shoppers bought cross-border products in 2015, and the number is expected to trend up as more Chinese consumers go online and gain access to goods and services.
If U.S retailers are looking for developing China market for growth, Alipay ePass will be appealing. The online sales could grow significantly with access to China, where according to the Alipay team, shoppers are eager for U.S. goods, and not just the best-known brands.
2. It Helps Chinese Customers Too
We mentioned in the previous piece that AliPay ePass will “make it easy for Western merchants to reach Chinese consumers without going into China”, since it will take care of procedures like currency exchange, customs, and shipping logistics. The truth is, Alipay ePass can offer great help on the customers side too.
For Chinese buyers, there are still unsolved issues like foreign payment and shipping. Currently, many consumers are using “online purchasing agents” to buy products for them from English language websites and ship to consumers’ doorsteps. But adopting this system, Chinese buyers don’t know when they will receive the goods they have paid for, and how much exactly they paid for.
By using Alipay ePass, Chinese consumers can pay in CNY via Alipay. Moreover, they will receive shipping information including estimates of when their orders will arrive. Everything will be crystal clear, and Alipay ePass develops this clarity for customers.
3. Easier Option to Touch Base with China
A key difference is that Alipay’s ePass does not require merchants to join a Chinese marketplace or translate their existing online shops into Chinese. For overseas retailers, Alipay ePass will deliver them a quicker start entering China market without investing millions at the beginning.
One may wonder if non-Chinese eCommerce sites would push Chinese customers away. According to a recent Alibaba Group survey of Chinese online shoppers, nearly 80% of respondents who said they had purchased products cross border used international websites in a language other than Chinese. Digging deeper, most of these shoppers are young, well educated, and eager to buy foreign goods that are unavailable or exorbitantly priced in China. They are a multi-billion-dollar and still booming market for global e-retailers.
4. Using Alipay ePass to Test the Market
Introducing your eCommerce sites to a total new region like China could be risky, luckily Alipay ePass will ease the “experimental phase” for you, during your first step to China market. You can make full use of this phase to test the market, find your Chinese consumer behavior and best sellers, analyze the data gather from China market, and even develop a China-focus strategy.
Then once you’ve determined there’s a large enough market for your eCommerce, you can enter China market at full speed. In general, using Alipay ePass as a trial will help improve your business and ensure your success.
TMO Group is Here to Help
The eCommerce market will be a $650 billion market in 2020, and cross border eCommerce is going to be a significant part of it.
Overall, Alipay ePass is essentially acting as a bridge, making it easier for Western merchants to leverage the ecosystem in China. As a leading solution provider in China, we are more than happy to “build the bridge” between your eCommerce and China market. Feel free to contact TMO Group if you are interested.
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