Taobao: The most popular C2C e-commerce platform in China<\/h2>\n\n\n\n
Launched in 2003 by the Chinese giant Alibaba Group, Taobao (\u6dd8\u5b9d\u7f51) is China’s largest online shopping platform,<\/strong> specializing in both B2C and C2C transactions, as well as the most popular online entrepreneurship platform<\/strong>, enabling thousands of young entrepreneurs to be successful. Taobao (\u6dd8\u5b9d\u7f51) literally means “search for treasure” in Chinese.<\/p>\n\n\n\n It has hundreds of millions of products and service listings, which are really appreciated by Chinese consumers. It has far over 800 million monthly active users<\/strong>, more than 8 million stores, over 1 billion product listings, and accounts for nearly 60% of the total e-commerce sales<\/strong> on the mainland. It’s one of the 10 most visited websites in the world. <\/p>\n\n\n\n If we look at the top websites by traffic, we can see that Taobao.com is ranked 5th, even before JD.com (7th). Since its creation and development over the years, Taobao is now able to leverage online shoppers’ insights and products, offering a wide diversity of products with an engaging and personalized shopping experience. Taobao shopping platform is mainly known for its domestically produced apparel, jewelry, accessories, etc.<\/p>\n\n\n\n You might think that Taobao is like any other e-commerce platform such as Tmall and JD.com. However, Taobao’s main asset is the price of its products which are less expensive than other websites on top of other functionalities that are extremely useful for both merchants and consumers:<\/p>\n\n\n\n What has made the success of Taobao is its simple and easy-to-use platform<\/strong>, enabling Chinese internet users to purchase products cheaper than anywhere else, and merchants to sell their goods at a lower cost in their own Taobao store than anywhere else. This strategy is indeed at the core of Jack Ma’s philosophy.<\/p>\n\n\n\n Our proposition is simple: we want to help small businesses grow by solving their problems through Internet technology. We fight for the little guy. Since our founding in 1999, we have helped millions of small businesses to achieve a brighter future, and we hope to do this for at least 102 years, thus spanning our company\u2019s life over at least three centuries.<\/em><\/p>\nJack Ma, founder of Alibaba<\/cite><\/blockquote>\n\n\n\n Moreover, it is also worth mentioning that like other e-commerce platforms, Taobao has benefited from Chinese consumers’ shift in consumption to online shopping and the growth of their purchasing power, making it one of the most popular online shopping platforms in the world. <\/p>\n\n\n\n Following China’s rapid digitalization, the majority of the Chinese population has a smartphone with direct access to the internet. Thus, online shopping has been democratized, and almost everyone uses e-commerce platforms or the Baidu search engine to compare items there. <\/p>\n\n\n\n However, you will also have to take into account that 60% of Taobao’s users are under 30<\/strong>. Their open Taobao’s first page on average 7 times per day, looking at 19 items. <\/strong><\/p>\n\n\n\n Taobao is also popular for its variety of products, including fresh food products that are delivered in a short amount of time directly to your doorstep. All the people that are able to read Chinese use the platform for day-to-day fresh products online shopping platform. <\/p>\n\n\n\n As mentioned earlier, both Tmall and Taobao<\/a><\/strong> are under Alibaba and are able to attract millions of consumers every day. However, even though they share some similarities, they have also some differences in terms of prices, rules, merchants, and services.<\/p>\n\n\n\n In terms of subscription, it is way cheaper to run a Taobao store<\/strong>. Moreover, Tmall tends to accept only companies that are already established in China and that have an online presence. Thus, it is easier for small companies to have a Taobao account and sell products on the platform. You will have access to a wide audience and it will be easier to set up your business.<\/p>\n\n\n\n In fact, setting up a basic Taobao store is easier than operating a full-fledged store, and this is what most foreign-owned companies are doing. In terms of design, Taobao has democratized access for everyone with its simple and easy-to-use functionalities. <\/p>\n\n\n\n In general, merchants will give the best price on Taobao than on Tmall. Tmall is considered by some as Taobao’s premium platform, with high-quality products that respect strict rules and regulations, whereas Taobao is freer.<\/p>\n\n\n\n Thus, due to its lower entry barriers<\/strong>, Taobao is also known as a low-quality platform<\/strong>, enabling merchants to sell fake products and do counterfeiting. This is why when it comes to luxury products high-quality and famous brands products, people tend to be more cautious about Taobao, and some may even purchase it on Tmall or JD.com. However, you will also be able to find some luxury brands on Taobao’s app because Tmall is also linked to Taobao.<\/p>\n\n\n\n Finally, it is important to know that Taobao is more about domestic products<\/strong> than Tmall, with its international platform Tmall Global. Thus, you have to be registered in China to be able to sell your products on Taobao or find a reliable Taobao agent, whereas foreign companies that are not in China can easily sell their products through Tmall Global.<\/p>\n\n\n\n To put it in a nutshell, despite its issues in terms of authentic products, Taobao still remains the choice of many consumers thanks to its affordability<\/strong> and a wide variety of products<\/strong>.<\/p>\n\n\n\n Selling on Taobao is accessible to almost everyone<\/strong>, thanks to its simple, quick, and easy process. Not only you will be able to reach a wide audience, but you will also be able to promote your products through the platform thanks to its multiple and various services. Moreover, Taobao’s instant messaging which is available directly within the app can be a powerful tool to grow your business and communicate with customers on your Taobao account. <\/p>\n\n\n\n Because Taobao is more about domestic sales, if you are already in China and want to get started in e-commerce in China, then Taobao is the place to go. Taobao has relatively low start-up costs <\/strong>and with some initial input and effective marketing, sellers can achieve high sales volumes.<\/p>\n\n\n\n Don’t forget that Tmall is also accessible directly from Taobao’s app<\/strong>. So you can easily create two stores if you want (one on Tmall and one on Taobao).<\/p>\n\n\n\n No, you won’t be able to open a Taobao.com store without establishing your company in China. However, you will be able to open a Taobao store and sell some products (according to their categories) if you register a company in China.<\/p>\n\n\n\n To begin with, if you want to sell your products or services on Taobao, you will first need to register as a seller on Taobao’s platform. Then, you will be able to open a Taobao store, customize it, add your products, and then advertise them.<\/p>\n\n\n\n You have to set up a company in China if you want to sell your products on Taobao. To do so, you will need a business license application, an office rental contract, copies of your passport, and a bank account registered in Mainland China.<\/p>\n\n\n\n Alipay (which is also from Alibaba) is the main payment used by consumers on Taobao. Thus, you will need to link your Taobao account to your Alipay account.<\/p>\n\n\n\n You will have to complete some documents as required in order to prove who you are and that you have a business.<\/p>\n\n\n\n You will have to set up everything in order to have the best user experience possible. But, don’t worry, you will have some guidelines when creating your Taobao store online.<\/p>\n\n\n\n The first thing consumers will see is the design and appearance of your store. Thus, you will have to find the appropriate colors to design effectively your Taobao store.<\/p>\n\n\n\n Don’t forget to upload your products with some pictures (3-5 pictures per product) as well as a detailed and concise description written in Mandarin Chinese.<\/p>\n\n\n\n The best way to attract consumers and stand out amongst your competitors is to promote your store through innovative and creative advertising campaigns.<\/p>\n\n\n\n You have to be sure that everything is going to run smoothly before launching your online store (description, pictures, design, price, delivery, etc).<\/p>\n\n\n\n The Chinese market is one of the most competitive in the world. Thus you will have to be creative both in your marketing and advertising strategies in order to stand out amongst your competitors and attract online shoppers. For example, you can create interactive ads.<\/p>\n\n\n\n Live streaming is the best way to sell and promote your brand and products on Taobao. Moreover, Taobao has its own live streaming tool (Taobao Live<\/a><\/strong>), which is extremely useful for consumers who just have to click on the link to purchase your products.<\/p>\n\n\n\n In 2019, the live streaming commerce generated 200 billion yuan just on Taobao. Taobao’s GMV from live streaming reached 500 billion yuan in 2020. This phenomenon can be explained by the fact that products sold during live streaming are cheaper than in brick-and-mortar stores on online platforms.<\/p>\n\n\n\n In China, brand reputation is an important criterion. You have to do everything you can to always have a good image for Chinese customers. If you lose your reputation, you will lose everything.<\/p>\n\n\n\n You need to make sure that you get good comments on your Taobao store, social media, and other websites. Chinese consumers only trust brands that have good comments and recommendations from friends or family and on media platforms. Don\u2019t hesitate to engage a digital marketing agency or a Taobao agent that can help you to keep a good image and avoid all bad comments about your brand.<\/p>\n\n\n\n To gain visibility and e-reputation, it is crucial to encourage positive word-of-mouth as it is the main way to brand<\/strong> discovery<\/strong> in China. In fact, Key Opinion Leaders<\/a><\/strong> (KOL) are social media users who succeeded to make a lot of traffic on their accounts and became famous. Chinese consumers idolize KOLs, and trust them more than brands. Some KOLs have millions of fans. They are really good to influence the mass population. Thanks to their popularity, you will be able to reach higher sales.<\/p>\n\n\n\n![\"\"](\"https:\/\/ecommercechinaagency.com\/wp-content\/uploads\/2021\/05\/Top-Websites-by-traffic.jpg\")
What has made the success of Taobao in China?<\/h3>\n\n\n\n
![\"How](\"https:\/\/ecommercechinaagency.com\/wp-content\/uploads\/2023\/03\/TAOBAO-STATISTICS-2-1024x576.png\")
<\/figure>\n\n\n\n\n
\n
\n
\n
\n
\n
![\"Taobao](\"https:\/\/ecommercechinaagency.com\/wp-content\/uploads\/2021\/05\/Baby-skin-care-Taobao.gif\")
<\/figure>\n\n\n\n\n
Taobao’s online shoppers<\/h3>\n\n\n\n
![\"\"](\"https:\/\/ecommercechinaagency.com\/wp-content\/uploads\/2021\/05\/Fresh-products-Taobao.jpg\")
Alibaba: Taobao vs Tmall<\/h2>\n\n\n\n
What are the main differences between Taobao and Tmall?<\/h3>\n\n\n\n
![\"\"](\"https:\/\/ecommercechinaagency.com\/wp-content\/uploads\/2021\/05\/Tmall-and-Taobao-app-1.jpg\")
![\"\"](\"https:\/\/ecommercechinaagency.com\/wp-content\/uploads\/2021\/05\/Gucci-on-Taobao.jpg\")
Selling on Taobao<\/h2>\n\n\n\n
![\"\"](\"https:\/\/ecommercechinaagency.com\/wp-content\/uploads\/2021\/05\/Tianmao-on-Taobao.jpg\")
Is it possible to sell cross-border products on Taobao?<\/h3>\n\n\n\n
How to sell products on Taobao?<\/h3>\n\n\n\n
![\"furniture](\"https:\/\/ecommercechinaagency.com\/wp-content\/uploads\/2021\/05\/furnitures-on-taobao.jpg\")
8 steps to open a store on Taobao<\/h3>\n\n\n\n
1 – Set up a company in China<\/h4>\n\n\n\n
2 – Connect your Taobao account to Alipay<\/h4>\n\n\n\n
3 – Complete identification authentication<\/h4>\n\n\n\n
4 – Create your Taobao store, connect the plugins, and set up Ali Wang Wang (for Customer Service)<\/h4>\n\n\n\n
![\"cosmetics-hair-care--brand-china-case-study\"](\"https:\/\/ecommercechinaagency.com\/wp-content\/uploads\/2020\/08\/cosmetics-hair-care-brand-china-case-study-1024x681.jpg\")
<\/figure>\n\n\n\n5 – Design your store<\/h4>\n\n\n\n
6 – Upload products (referred to as “babies”)<\/h4>\n\n\n\n
![\"\"](\"https:\/\/ecommercechinaagency.com\/wp-content\/uploads\/2021\/05\/Microwaves-Taobao.gif\")
<\/figure>\n\n\n\n7 – Promote your store and advertise your products<\/h4>\n\n\n\n
8 – Carefully check your store<\/h4>\n\n\n\n
Promoting your Taobao shop and products<\/h2>\n\n\n\n
![\"\"](\"https:\/\/ecommercechinaagency.com\/wp-content\/uploads\/2021\/05\/Interactive-Ad-Taobao-2.gif\")
Live streaming on Taobao<\/h3>\n\n\n\n
![\"\"](\"https:\/\/ecommercechinaagency.com\/wp-content\/uploads\/2022\/06\/chowtaifook-taobao-live-streaming.jpg\")
<\/figure>\n\n\n\nBuild a strong e-reputation<\/h3>\n\n\n\n
![\"\"](\"https:\/\/ecommercechinaagency.com\/wp-content\/uploads\/2021\/05\/Comments-Taobao.jpg\")
KOLs to promote your brand<\/h3>\n\n\n\n
![\"\"](\"https:\/\/ecommercechinaagency.com\/wp-content\/uploads\/2021\/05\/Taobao-KOL.jpg\")
Contact us<\/h2>\n\n\n\n
![\"\"](\"https:\/\/ecommercechinaagency.com\/wp-content\/uploads\/2021\/05\/GMA-Services.jpg\")
<\/figure>\n<\/figure>\n\n\n\n![\"\"](\"https:\/\/ecommercechinaagency.com\/wp-content\/uploads\/2022\/12\/Case-studies-1024x435.png\")
<\/figure>\n","protected":false},"excerpt":{"rendered":"