International businesses welcome the good news of cost reduction and efficiency improvement.
On July 29, Tmall International released three new service measures to help international brands enter the Chinese market with lower cost and higher efficiency. The three major services include the availability of merchant deposits, the opening of new merchants’ quick entry channels, and the establishment of merchant entry service centers.
Under the global epidemic, China, as the first market to recover from the epidemic, has attracted international businesses to accelerate their entry into Tmall Global to seek new growth. This time, Tmall International’s margin was “unblocked” for the first time in order to ease the tightness of operating funds for cross-border merchants.
The security deposit is a fee that merchants will be required to pay when they enter the e-commerce platform. It is used as a liquidated damage to the consumer when the merchant violates the rules to ensure the consumer’s after-sales experience. During the period from August 1st to November 15th, Tmall International will open platform merchants to apply for temporary use of deposit, the maximum amount can reach 50%, which can be used for marketing, logistics and other expenses.
“As long as the merchant’s credit and business conditions are met, half of the deposit can be prepaid, which is equivalent to providing a liquidity for the merchant with no interest and a cycle of more than 100 days.” The relevant person in charge of the Tmall International Commodity Center said , Since August, cross-border merchants have entered the double 11 preparation state, new merchants have accelerated their entry, and international stocking to China’s bonded warehouses has been started one after another. The “unblocking” of the margin can ease the cash flow pressure of stocking before the big promotion.
At the same time, in order to help new merchants to speed up the opening of stores, Tmall International also opened a quick entry channel and set up an exclusive merchant entry service center.
New businesses can enter the green channel for qualification review, the exclusive second club will complete the review within 1 working day, and some qualifications can be supplemented after an extended period of time. The time limit for opening a store has been shortened from the original 30 days to 15 days. At the same time, the exclusive service center for new merchants not only provides cross-border business experts with one-to-one shop guidance, but also provides comprehensive answers to merchants’ questions about entry, qualification, payment, logistics, and stocking through exclusive live broadcast courses and online presentations.
Since the beginning of this year, Tmall International has launched a series of measures for international businesses to reduce business costs and improve operating efficiency. Beginning in January, Tmall Global has fully opened up investment promotion, with 4 new channels for entry, and launched “custodial” services, creating a set of overall service plans for international new brands from entering, opening stores, and operating incubation; international stores enter The threshold has been reduced from the requirement of more than 20 offline stores to 5; the logistics side can enjoy 50% off the first trip this year, and the international warehouse and central warehouse stocking costs reduction and exemption rights.
Since 2018, after Alibaba set a five-year US$200 billion import plan at the first CIIE, Tmall International has optimized merchant services and accelerated the entry of international brands into China. In the past year, more than 400 new international brands have settled on average every month. In the first quarter of 2021, the number of new brands has increased by 63% year-on-year. Up to now, more than 29,000 international brands from 87 countries and regions around the world have entered Tmall International, covering more than 5,800 categories, of which more than 80% of the brands have entered China for the first time.