China eCommerce Opportunity with Floship

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CHINAINBOUND

$975 billion USD

$648 billion USD

$186 billion USD

$124 billion USD

$76 billion USD

Estimated turnover in 2016

United States

Japan

China

France

United Kingdom

World’s #1 Ecommerce Market

● In 2016, Chinese cross border ecommerce purchases totaled $86 billion USD (9% of total Chinese ecommerce market)

● By 2020, it is expected to double to around $157.7 Billion USD

Cross Border Opportunity

Other factors affecting cross border:

● Rising incomes, larger middle/upper class demographic

● Increased brand awareness results in growing demand for mid/high-end products

● Changing preferences and tastes

Why Cross Border?

● Tmall

● JD Worldwide

● Amazon.cn

● WeChat

● Coming soon: Taobao Global

China Distribution Channels

● Cross-border ecommerce market is fragmented vs traditional

● China platforms partnering with more global brands e.g. Macys, Hugo Boss, Versace

● Consumers now purchase direct from overseas retailers

China Market Share

Top Overseas ProductsTop 10 cross border product categories

49.6%Consumer Electronics,

household goods

China Postal Channel

Hong Kong Inventory

Tax free if under threshold$120 USD China Consumers

3 days - 6 days

China Customs B2C ImportOverseas Inventory

No tax

Hong Kong CustomsB2B Import

Tax rate of 15% / 30% / 60%

China BC Import Channel

Hong Kong Inventory

eCom Tax (11.9%) HS Code pre-entered on platform China Consumers

4 days - 7 days

China Customs B2C ImportOverseas Inventory

No tax

Hong Kong CustomsB2B Import

Coming soon:Currently supported:

Floship IntegrationsAmazon.cn

Tmall

JD.com

Aftership

Magento

Shopify

Woocommerce

Dear

Market Entry PrerequisitesBasic business requirements:

A registered foreign corporate entity

Possess foreign retail and trade qualifications

Pay partner site set up fees and acquire appropriate business licenses

E.g. Tmall Global requires a US$25,000 security deposit, a US$5,000 annual fee,

and a 0.5-5 percent commission depending on the product category

Operational requirements:

Products must be genuine, complete with a certificate of origin and meet both

Chinese/international customs specifications

Product labels must be in Chinese and use international units of measurement

Floship Features & BenefitsOnline Visibility & Control Integrations to Key China Channels

Fluent English Customer Service China Inbound & Regional Expertise

Contact Us

Floship

@floship info@floship.com

Thank you!