Founded in 2004, DHgate.com is the first website in China to provide B2B online transactions for small and medium-sized enterprises. It adopts a commission system, is free of registration fees, and only charges fees after the transaction between the buyer and the seller is successful. According to data, DHgate.com is the No. 1 e-commerce website in Asia Pacific and No. 6 in the world in terms of online foreign trade transaction volume. As an innovator of small and medium-sized B2B overseas e-commerce, DHgate.com adopts the EDM (Email Marketing) marketing model to expand overseas markets at low cost and high efficiency. The self-built DHgde platform provides high-quality product information for overseas users. Users can freely subscribe to English BDM product information and learn about the latest market supply at the first time.
1. DHgate.com’s transaction model
DHgate.com adopts a commission system, is free of registration fees, and only charges fees after the transaction between the buyer and the seller is successful. Since May 8, 2016, Dunhuang.com has implemented a unified “tiered commission” policy: when the amount of a single order is less than US$300, the platform commission rate is 8.5%~15.5%; when the amount of a single order reaches US$300 and is less than US$1,000, the platform commission rate is directly reduced to 4.0%; when the amount of a single order reaches US$1,000 and is less than US$5,000, the platform commission rate is directly reduced to 2.0%; when the amount of a single order reaches US$5,000 and is less than US$10,000, the platform commission rate is directly reduced to 1.0%; when the amount of a single order reaches US$10,000, the platform commission rate is directly reduced to 0.5%.
2. Features of Dunhuang.com
The usual cross-border transaction model is: upload product features, quotations, and pictures to the platform; receive orders from overseas buyers; prepare goods and ship goods; buyers pay after receiving goods; trade settlement. On Dunhuang.com, buyers can choose to generate orders based on the product information provided by the seller, and purchase in bulk by purchasing samples in small quantities first and then purchasing in large quantities. Compared with DHgate.com and other trading platforms, DHgate.com has the following characteristics.
(i) Shorten the trade process and speed up capital turnover
DHgate.com helps suppliers directly connect with overseas wholesalers and retailers, reduces the intermediate links between exporters, importers and wholesalers, saves online transaction time and speeds up capital turnover.
(ii) Avoid trade risks DHgate.com has a complete third-party payment guarantee system to ensure the safety of funds and eliminate fraudulent transactions and intellectual property risks.
(iii) Timely and accurate grasp of target market information
DHgate.com directly faces overseas end users, helping suppliers to timely and accurately grasp the trend changes and price trends of overseas target markets, and enhance the competitiveness and bargaining power of enterprises.
(IV) Reduce freight costs and diversify logistics methods
Dongguan.com provides a variety of logistics options such as surface mail, express delivery, and sea transportation to meet users’ diverse freight needs; cooperate with world-class logistics companies such as EMS/UPS/DHL to provide efficient and low-cost logistics services, with a minimum fee of RMB 3 to send to the global market
3. Dunhuang.com’s operating business
Dongguan.com solves all transaction processes other than commodities, gathers a large number of demands to negotiate the lowest discount with suppliers, and reduces the costs of DHL and FedEx by at least 50%. As a professional logistics outsourcing company, the back-end logistics system is connected with UPS, and UPS arranges pickup according to system notifications. The platform mainly provides platform resource integration services such as transaction support and overseas marketing.