Zeng Bibo, the CEO and founder of Ymatou.com, a cross-border e-commerce platform, said at the Global Mobile Internet Conference (GIMC) in Beijing on Friday that the difficulties now faced by most of China’s e-commerce platforms have no relationship to China’s newly-implemented tax regulations.
Because of the new tax regulations which took effect earlier this month, several popular categories of overseas products, including baby products and cosmetics will face an 11% increase in cost for consumers. Many cross-border e-commerce platforms regard this new policy as a challenge because overseas baby products, including diapers and milk powder are the main products they sell. However, Zeng said the challenge actually has little to do with China’s new tax regulations, but is due to other factors.
“The low product circulation efficiency in China, the limited choice of overseas products and time-consuming logistics are the main challenges in China’s whole e-commerce sector,” said Zeng.
Founded in 2009, Ymatou.com is a C2C platform connecting overseas retailers with Chinese customers. It has built 12 overseas warehouses in countries including the U.S., Australia, Japan and England. The overseas local retailers just need to transport the ordered goods to the warehouses. The company then delivers the goods directly to customers, which helps shorten delivery times.
“80% of our customers receive their order within five days with the help of our international logistics,” said Zeng.
Additionally, the company has numerous buyers in more than 40 countries around the world. These buyers help choose and introduce goods for customers so customers will have more choices.
With the help of the company’s international logistics and buyers around the world, Zeng said the new tax regulations have had little effect on Ymatou.com.
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(Top photo from Baidu)