More and more people are shopping on Tmall. Because the Tmall platform is more reliable than the Taobao platform, Tmall also took this opportunity to launch the Tmall International platform. Simply put, it is the channel for Tmall platform to purchase imported products. So, what is the procurement model of Tmall International?
What is the Tmall International procurement model?
After Tmall International went online, two companies, Zhengzhou Comprehensive Bonded Zone and Hangzhou Cross-border E-commerce Industrial Park, signed cooperation contracts with Tmall. Subsequently, Tmall International cooperated with Ningbo Bonded Zone, and 3 of the 6 pilot cities signed Tmall International. This shows that various cross-border e-commerce trade pilots are interested in Tmall’s international business model.
At present, Tmall International’s cross-border trade products include four major categories: clothing, shoes and hats, food and health care, mother and baby, and beauty and skin care, with more than 200 stores, including brands from more than 5,000 countries and regions in North America, Western Europe, Southeast Asia, and Oceania, including many luxury brands such as Versace, COVHERlab, LV, Fendi, etc.
In the future, some products in the list of foreign products under Tmall International by users will be sent to all parts of the country in Ningbo Bonded Area. Some customers near Ningbo Bonded Area can get the products as early as one or two days. With the support of logistics, this trading method is now loved by many people.
What are the disadvantages?
1) Avoid tariffs
This situation will happen to this kind of goods. That is to say, many people often use samples or advertisements to save taxes. If it develops to a certain extent, it will affect the revenue of customs. For example, in a large country with customs revenue as the core fiscal revenue, the impact is definitely great, so many countries have different views on cross-border e-commerce.
2) Avoid inspection
Small foreign trade generally cannot afford the inspection fee, so it is often not inspected. And because of the looseness of the personal mailing system, there is generally no strict quarantine inspection import and export stage as traditional foreign trade.
In this way, the quality of the product cannot be guaranteed, which will bring various hidden dangers to consumers, such as sensitive foods, children’s toys, maternity and baby products, animals and plants, etc., which will lead to countries to be cautious. Therefore, countries will adjust the regulatory policies and strengths of different categories at any time. This will bring uncertainty risks to cross-border e-commerce.
3) Avoid non-tariff barriers
For example, at the beginning of the new year, Argentina introduced a new online shopping control policy in order to limit its international spending and guide the country’s struggling loan stability. Online delivery (online deliveries) It will not be sent to the customer’s address, but will be “signed” by the customs. The tax-free amount of “sea shopping” products is also stuck at US$15, and the part exceeding the threshold will be granted a 50% tariff. Leading to delays in cross-border online shopping packages.
4) Impact on the retail industry
Cross-border e-commerce represents trade liberalization to a certain extent. More and more international postal parcels are running unlimitedly around the world. And it should be noted that this operation is unbalanced. This will inevitably change the originally stable international trade status and order of various countries.
It is essentially the distribution of market share among countries in the world. It will definitely have a serious impact on some Chinese, especially small countries with underdeveloped economies. For example, Europe and the United States advocate free trade, European and American brands are strong, and the retail industry is developed. The implementation of cross-border e-commerce liberalization is more beneficial to Europe and the United States.
China is a world factory and a major trading country. It has great demands on the Chinese market, so China is also an active promoter of cross-border e-commerce.
5) Difficulties in cooperation among countries
With the rapid development of cross-border e-commerce, relevant countries must upgrade backward customs infrastructure, postal packaging processing and sorting capabilities, revise relevant regulatory regulations and convenience policies, and enhance necessary manpower, etc.
However, the financial situation of many Chinese countries is not very good now, such as Russia and Africa, which are not very enthusiastic about this due to insufficient funds.
As the import product channel of the Tmall platform, Tmall Global’s procurement model has attracted much attention. Its advantages include a rich selection of brands and products, fast logistics support, etc., but it also has disadvantages such as evading tariffs, difficulties in inspection, and impact on other countries’ markets. It is important for shoppers and merchants to understand the advantages and challenges of Tmall Global’s procurement model.