Online shopping has become the mainstream in China, and any brand serious about entering the Chinese market should be investing time investigating the Chinese E-Commerce landscape. In this practical guide, we are focusing on Vipshop International. We are digging down into the crucial steps to succeed on this specific cross-border e-commerce platform – the world’s largest flash sales site.
- About VIP.com
- About VIP International
- Entry requirements for your Brand
- Entry procedures
- Cost of investment
Before getting into the topic here is a reminder of what is cross-border e-commerce: Cross-border e-commerce is the buying and selling of goods and services across international borders. It entails the purchase of goods or services from a foreign country either online or through a physical storefront. Cross-border e-commerce has become increasingly popular in recent years as more and more consumers are seeking out better deals on products from around the world. In addition, businesses are beginning to realize the potential profits that can be made by expanding their operations into new markets.
To go further: Read our comprehensive Selling Guides on China’s leading cross-border e-commerce platforms: Tmall Global, JD Global, and Kaola. Just like in the coming guide, we give you the key to becoming a successful merchant on those platforms.
GUIDE TO SELLING ON VIPSHOP INTERNATIONAL
1. About VIP.com
VIP.com (NYSE: VIPS) is the largest flash sales platform in China and globally.
Its primary business strategy is to partner with popular and well-known brands and sell their excess inventory to consumers throughout China at a significant discount from retail prices. The discounts normally range between 20-80%, but can sometimes reach up to 90% during squeezed time periods.
VIP.com covers wide product categories ranging from apparel, shoes & bags, cosmetics, maternal and child products, home goods to foods, and more. By providing special offers and deep discounts on branded products, VIPshop has pioneered the online discount retail model in China and become the expert and leader trusted by its customers and brand partners alike.
- Today, VIP.com records 330 million registered members and an 86% repeat purchase rate.
- In 2018, VIP.com reached annual net revenue of $84.5 billion RMB, with 437 million total annual orders and more than one million average daily orders.
- VIP.com works with over 13,000 brands, more than 1,600 of those brands are exclusive online partners with VIP.com.
2. About VIPShop International
VIP.com opened VIPshop International in 2014, which is dedicated to cross-border e-commerce.
On VIP International, all products are sourced and bought directly from overseas, while Chinese products are sold on the parent site.
VIP International is the third-largest B2C cross-border sales platform of imports in China, accounting for over 15 percent of the total market share.
Large-scale procurement and strong logistics network
- It has set up professional buyer groups in 11 countries and regions to guarantee product authenticity from the supply chain.
- It has also formed close relations with several consulates and long-term partnerships with well-known brands across the world.
Based on its 12 warehouses overseas and 11 bonded warehouses in China, VIP International has built a sophisticated and flexible logistics network, which enables it to start delivery within 12 hours after orders are received.
In-house and 24/7 customer service
VIP has its own customer service team that will answer all concerns from customers 24/7.
In terms of after-sales services, customers can return goods in seven days with no explanation necessary. The process will take place in China, which means fast refunds.
Who buys what on VIPshop International?
Over 70 percent of VIP International’s customers are young women born in the 1980s and the 1990s, mostly living in coastal cities and second-and third-tier cities in central China.
The most popular commercial goods include skincare products and cosmetics, mother-care and child products, nutrition and health products, and women’s clothing.
Payments are accepted through VIP’s Payment service and other third-party online payment services, such as tenpay.com and alipay.com.
other information SMCP, Chinadaily
3. Entry requirements
- Overseas entity (for CBEC)
- Priority for recognized brands and companies
4. Entry procedures
- Provide required information and documents by sending email to VIP.com
The following information should be included when you send an inquiry:
- Your company name
- Description of your company
- Company website
- Product category
- Waiting for a response, which usually takes less than 5 working days
- Negotiate and sign official contracts
- Products uploaded and sold online
5. Cost of investment
VIP.com and VIP International are preferable choices to many foreign brands as the products are pre-purchased.
This removes the hassle to deal with marketing costs that otherwise range between 5-30%, costs for IT setups, customer support, and more.
Furthermore, you’re not subject to any membership fees, commissions, deposits, or listing fees when selling on VIP.com or VIP International.
VIP International can be a good start since the entry requirements are not as rigorous as Tmall Global or JD Worldwide, as well as the cost of investment, is lower compared to these 2 sites.
VIP can be an effective trial tool for foreign brands to test out their newest products in the Chinese market before venturing into more substantial e-commerce activities. At the same time, flash sales websites can be considered an effective marketing technique to give more exposure to one’s brand.
However, the product categories are limited to health and beauty, mother and baby, clothing and shoes, home and furniture, and F&B on VIP International. Additionally, brands need to be aware that flash sales can lead to sudden stock shortages.
More Questions about China Cross-Border? You can get our Report with a simple email to us.
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I am a Tour Operator from Arusha, Tanzania. I would like to know how we can work together for my company to get to Chinese market. Any ideas or interested? Thank you
I am a Tour Operator from Arusha, Tanzania. I would like to know how we can work together for my company to get to Chinese market. Any ideas or interested?