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The Secret of China’s Domestic E-commerce Market

  • Understanding the Truth Behind China’s E-commerce: Sales, Pricing, and Supply Chains

    Double 12 vs. Double 11: When Are Products Really the Cheapest?

    In many cases, some products are cheaper during the Double 12 than on Double 11. They’re the cheapest during the Chinese New Year Shopping Festival because it’s really the time to clear out inventory at the end of the year.

    Why Are Some Online Products More Expensive Than Offline?

    Many e-commerce products are actually more expensive than offline ones. Take a certain spicy snack for example—why is that? Because online sellers often have to “buy” their own products to compete or rank, while offline sellers have more room to maneuver.

    Who Really Controls Delivery Services?

    Delivery services are not controlled by the sellers. Whenever customers complain to customer service about courier issues, they act like sellers own the courier companies. Sellers are also frustrated by all the courier problems.

    Cheap vs. Expensive: Don’t Be Fooled by Price Tags

    Expensive products aren’t necessarily good; cheap ones are definitely not good.

    Appliance Sub-Brands: Are They Worth It?

    To give a specific example: derivative products from big-name appliance brands—like the Changhong clothes dryer—are often just rebranded and not impressive in quality. In fact, Changhong’s dryer has already been delisted by Tmall.

    Trust Your Intuition More Than Online Reviews

    Trust your gut feeling more than online reviews.

    The Dark Truth Behind Celebrity-Endorsed Products

    That popular facial mist device endorsed by a female celebrity? It sells for over ¥180 but costs less than ¥40 to manufacture. The facial mist market is incredibly deep.

    When to Buy Seasonal Essentials for the Lowest Price

    When you plan to buy an essential item with a clear seasonal trend, the cheapest time is usually two months before peak season. For example, fans: by May they’re in high demand, but in March–April, they’re cheapest. Last March, a TCL fan was sold for ¥79, which was also the factory price. Of course, seasonal festival products like mooncakes or rice dumplings are an exception.

    The Pitfalls of Buying Festival Foods Online

    Speaking of mooncakes and rice dumplings—if you need to buy them, don’t sort by sales volume. These items only sell for a few days, and many high reviews are fake or misleading. Some brands are just awful.

    Vertical Platforms Are Gaining Momentum

    Regarding trends: while Alibaba and JD.com are dominant, vertical e-commerce platforms will increasingly become strong players. Giants may struggle with niches, but vertical platforms like NetEase Yanxuan, Beibei, Babytree, Youwei, etc., will grow.

    Fake Orders Are Everywhere—Even Beyond E-commerce

    Every e-commerce platform you know has fake orders—100% of them. Sometimes it’s the platform itself, sometimes it’s the resellers. Even non-e-commerce platforms do it. Take music apps with 999+ fake reviews, or app stores—it’s all the same tricks.

    The Truth About Celebrity Endorsements in China

    As for celebrity endorsements, ever notice they always use the same few photos? That’s because celebrities often just license their images. They likely haven’t even used the product. The real value of endorsements is questionable—especially in the Internet+ era.

    Rural E-commerce Is Still a Huge Opportunity

    Rural Taobao still has great potential. Combine it with affiliate strategies and courier station models, and you’ll see results. I’ve heard of a village in Ningbo, Zhejiang, where a Taobao station generates hundreds of thousands in monthly revenue, with over ¥50,000 in net profit.

    The Gray Area of Counterfeits in High-End Stores

    A former operations staff member from a shoe store told me that some exclusive shops for international sports brands used to mix genuine and high-quality knockoffs. Yes, that shameless. But it doesn’t mean all stores are like that—things may have changed now.

    Spend Smart: Food and Cosmetics Are Non-Negotiables

    It’s okay to go cheap with some things, but not food. If it’s too cheap, don’t buy it. Same goes for cosmetics and adult products.

    Sellers Fear the Platform More Than You Think

    The thing sellers fear most is platform intervention. If they’re being unreasonable, report them with chat screenshots. Of course, if it can be resolved amicably, that’s better. After all, sellers have it tough too.

    Beware of E-commerce “Gurus” and Courses

    If you want to get into e-commerce, don’t believe any agency that guarantees success. Be cautious with training programs. Most one-to-many courses—especially on platforms like YY—just repeat a few success stories endlessly. They may have tested 100 strategies, only 5 worked, and those 5 get repeated 100 times.

    Inside Info on Taobao and JD Staff

    Taobao and JD staff (nicknamed “Xiao Er”) aren’t that mysterious—just regular people. They might always talk about marketing tricks, but few are actually effective. It’s all about sales. Some people think working at Alibaba is prestigious—and some roles are—but what merchants really respect is position. Even if it’s a dog in that role, merchants would still cozy up.

    JD Logistics vs. Alibaba Algorithms

    Alibaba’s search algorithm is world-class, but JD’s self-operated warehousing and logistics are far ahead of Alibaba.

    Offline Retailers Must Pay Attention to E-commerce Tax Issues

    For offline businesses doing e-commerce: if you have a large offline operation, pay close attention to tax issues. E-commerce is still supported by the government, so tax policies aren’t super strict, but if your offline business has problems, your online revenue will also be scrutinized. If the government wants your e-commerce records, all it takes is a phone call to Alibaba or JD.

    1688 vs. Taobao: Where’s the Real Deal?

    Products on 1688 are sometimes cheaper than on Taobao—even for the exact same item. But skip branded items—they’re hard to find. Also, not all sellers on 1688 are manufacturers; some are distributors.

    Small Platforms, Big Sales: The Hidden Giants

    On other platforms: Beibei.com was notorious for rampant fake orders early on—everyone in the industry knew. Product quality was average at best. NetEase Yanxuan has relatively strict quality controls and handles its own warehousing. Don’t underestimate platforms like Meiyou—they sell dirt-cheap products but can rake in tens of millions in sales on Singles’ Day, with affiliate commissions in the millions.

    Trademarks, Rebranding, and Platform Endorsements

    Some products skate on the edge of regulation yet flourish on Tmall. For example, the “Baier” electric toothbrush has nothing to do with Bayer from Germany. Factory cost is a few dozen yuan, retail is several hundred. Judging by reviews, many buyers think it’s from Bayer. Honestly, it’s pure luck they got the trademark and a Tmall store with full platform support.

    Behind-the-Scenes: OEM Brands Are Rising

    Some products like hair removal devices—there’s an Israeli brand that sells insanely well. With a price over ¥2,000, even a small C-store orders hundreds to thousands of units per batch (from hard-to-find channels) and sells out in days. Sometimes, the truly great products are quietly selling in the shadows.

    More and more OEM manufacturers for big brands are launching their own labels. I know factories that make for Philips, Tescom, and Babyliss now have their own Tmall stores. These OEMs are powerful—not short on money, but short on brand premiums. Philips can sell at ¥399 with ease, but the same product under their own brand at ¥199 won’t sell. Their R&D and production deserve respect. I believe in the future of “Made in China.”

    Don’t Trust the Hype Around E-commerce Sales Numbers

    Those insane sales figures during big e-commerce festivals? Take them with a grain of salt. Some product return rates exceed 50%, especially in women’s fashion. Pre-sales are just a legitimate way to fake orders. Every platform has whitelisted sellers allowed to do this—for the sake of data. So when platforms say they want to hit a sales goal, trust me—it’s doable.

    Consumer Rights: Invoices and Reporting Are Your Tools

    If a seller says they can’t issue an invoice, take screenshots of your chat and report them to the platform—they will be penalized or docked points. Always be mindful of your rights as a consumer.

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