MENU

Managing cross-border payments in a booming Chinese eCommerce market

LinkedIn Twitter Facebook

 

Author: Julian Wallis, UK&I Country Manager, Ingenico ePayments

eCommerce sales in China are rocketing. Currently, e-shoppers there average an annual spend of $1,855 each. Total sales revenue is expected to be worth $1trn by 2019, compared to $534bn in the US. To put this in perspective, sales in the US were $15bn higher than in China just three years ago.

China is a challenging market for Western retailers to expand into, but a rise in living standards means consumers there are increasingly willing to look beyond their borders to find high-quality products, such as nutritional supplements and cosmetics, at the right price. According to a recent report in PYMNTS, a quarter of the Chinese population will be shopping either directly on overseas websites or through third parties by 2020. The most popular shopping destinations for online cross-border sales are the US, Japan, South Korea, Germany, Australia and the UK.

 

Plenty of retailers have struggled with their expansion into China, but with the right strategy, merchants will enjoy great success. Despite its phenomenal growth, the Chinese market’s most exciting days are still ahead of it: Alibaba, the country’s largest online retailer and marketplace, is aiming to serve two billion consumers and support 10 million businesses within the next ten years.

 

Singles day (11th November, or 11.11) is China’s biggest shopping day of the year and is expected to eclipse last year’s £9.3bn worth of sales by a considerable margin. Alibaba recently extended its 24-hour sale to an incredible 24 days and most of these payments will be processed though Alipay.

Cross-Border eCommerce in China Singles Day 11.11

Mobile payment transactions, for example, are expected to lead the eCommerce boom in China. According to a 2015 Forrester report, 25% of respondents to a survey reported that they shop via mobile phone on a weekly basis. Merchants need to offer this or risk losing out to rivals that do. $383bn was spent via mobile devices in China last year alone.

 

The importance of Alipay, the most popular e-wallet service in China, cannot be overstated. The brand boasts over 800 million users and processes more than 8.5 million transactions every day.

Understanding the market is the key to success

However, payments go beyond Alipay in China. Cash on delivery is extremely popular, while it’s also essential to offer Union Pay as well as other popular local payments providers. Why? A variety of payment options shows a high level of customer care and will help reduce cart abandonment.

 

There are six critical pillars of online retailing that must be addressed in any successful international strategy: localisation, logistics, payments, mobile and multichannel, social media presence, and fraud prevention.

 

When considering an expansion into China, merchants must be prepared to navigate the cultural, regulatory and fiscal minefields that may present complications. Payments will be central to meeting this challenge. Merchants should ensure they can offer the key platforms, but take care to adapt to local variations and preferences. China’s market, both within and outside the country, will only continue to flourish – adapt to its users and you will too.

 

 

For more information, please consult our China cross-border eCommerce country guide.

LinkedIn Twitter Facebook

Building an eCommerce fraud prevention strategy for Germany

Building an eCommerce fraud prevention strategy for Germany

Being the world’s fifth largest eCommerce market, Germany has become an exceptionally popular destination for online merchants looking to sell their goods and services. However, retailers should still be aware of the high levels of fraud to do with their number one payment method. Therefore, what do you need to know about building an eCommerce fraud prevention strategy for Germany?
Interview with Kai Li, Vice President of International at Revolve

Interview with Kai Li, Vice President of International at Revolve

eCommerce Worldwide Cross-Border Summit 2017 - Ahead of our annual event on 24th May, we interview Kai Li, Vice President of International at Revolve Clothing, to learn from his experience and knowledge in cross-border trading.
How does device usage differ in France, Germany, and the UK?

How does device usage differ in France, Germany, and the UK?

It is well known that the use of smartphones and tablets has grown rapidly but which device dominates the traffic and at what time of day across France, Germany and UK? And how does device usage differ between these Countries?
Delivery into Russia: what you need to know

Delivery into Russia: what you need to know

Online retailers know the opportunities that comes with expansion into Russia but entering this massive market comes with its delivery challenges. However, what do you need to know about trading and delivery into Russia?
Using non-commercial organisations to grow your online retail business in Russia

Using non-commercial organisations to grow your online retail business in Russia

Russia is frequently perceived by foreign retailers as a complicated and risky environment but there are a number of organisations in Russia that can help you understand this market environment and the rules by which the market plays. But who are they?
Agenda Announced for eCommerce Worldwide Cross-Border Summit 2017

Agenda Announced for eCommerce Worldwide Cross-Border Summit 2017

The agenda has been announced for the eCommerce Worldwide Cross-Border Summit and it boasts a wealth of retail experts with years of experience between them in expanding their brands overseas.
What can UK online retailers learn from major sales events in China?

What can UK online retailers learn from major sales events in China?

By cleverly orchestrating a string of headline-grabbing shopping holidays throughout the year, China is reinventing retail. But why are Chinese consumers embracing these shopping frenzies so readily and offers and how can overseas retailers learn from this to gain and maintain the competitive edge?
How WeChat is used for Business

How WeChat is used for Business

WeChat has been a hot topic for many marketers for a long time. However, how much do we really know about the most used social network in China? And how is WeChat used for business?
Ecommerce in Australasia

Ecommerce in Australasia

The New Zealand and Australia cross-border eCommerce markets are booming and it is looking to continue this way for the coming years. With almost 17 million savvy and highly engaged online shoppers in the region, what do you need to know about these eCommerce markets and which are the most successful retail sites there?
Ecommerce shipping to Australia

Ecommerce shipping to Australia

It’s easy for any retailer to be attracted to the impressive digital adoption Australia has taken with online retail sales of USD $9.5 bn last year. However, this success is not without its challenges as shipping into this widely fragmented country can affect your business - but how?

Contact Us

eCommerce Worldwide
2 Ching Court
49-53 Monmouth St
London
WC2H 9EY

Tel: 0203 696 0980
2016© eCommerce Worldwide

Keep In Touch

powered by Affino

About eCommerce Worldwide

eCommerce Worldwide provides online retailers with all the information, and resources, they need to develop cross-border strategies for entering new markets around the world
Read More