A new study from Payoneer shows which marketplaces Chinese e-retailers sell on—and what strategies they’re employing on those platforms to expand internationally. Online marketplaces are gateways for Chinese retailers and brands to reach international customers.
According to Payoneer Inc., 62% of e-retailers in China sell goods on marketplaces operated by Amazon.com Inc., the most popular among other international shopping portals, such as eBay Inc. and Etsy Inc.
Of the 62% of respondents selling on Amazon, 91% sell on Amazon.com in the United States. Among the Chinese merchants who don’t currently sell through Amazon, many plan to join. 26% say they want to sell on Amazon.com, the site for US consumers; 23% wish to join Amazon’s European sites and 12% want to sell through Amazon.co.uk, Amazon’s UK site.
Sellers who until a few years ago could barely reach buyers across their own country, can now utilize marketplaces to reach buyers across continents.
Why do Chinese sellers prefer Amazon?
Sellers also cite high traffic volume, local customer support and access to multiple markets for choosing Amazon, No. 1 in the Internet Retailer 2016 Top 500 Guide.
Selling on marketplaces comes with its challenges, too, the biggest being stiff competition. Nearly half (45%) of respondents cited increasing numbers of Chinese sellers as the biggest challenge to selling on online marketplaces. Other common challenges marketplace sellers in China face: high fees and low marginal revenue (27%), following strict rules (16%), tax and trading policies of different countries (11%) and unstable payment methods (2%).
A version of this appeared in Internet Retailer on August 1. Read the full story here