Four Tips On How To Start An Online Business And Sell Products In China

With the Chinese spending $25 billion online in only one day (November 12, 2017), selling online to the China makes perfect sense for businesses in the USA and UK.

This short article includes just tips why starting an online business and selling to the Chinese should boost the sales of foreign eCommerce businesses.

Imagine! There are more than half of the internet users across the globe living in China, therefore, there must be a quicker way to be up and running.

Luckily there is. Businesses should consider partnerships (or joint venture), obtaining online recommendations, getting through the Chinese firewall, and using videos to help them flourish in the Chinese online market.

Tip #1: Partnerships.
A new business on the online platform in China can thrive by getting involved with local businesses. Mo (2013) states a new online business owner need to understand the main market players before venturing into the Chinese market. For instance, Google is a common search engine in most parts of the world. On the other hand, in China it only has a 3% market share while Baidu, which is the largest search engine, has a 66% market share. Entering the market and getting involved with the right partners will help a new business thrive (Mo, 2013).

Tip #2: Recommendations.
Learning the market also involves understanding the major differences before starting an online business in China and the west (e.g. USA and UK). There are approximately 600 million users online in China, who want quality products and innovative ideas, even from a new business. However, the Chinese market places high value in recommendations. A business can obtain recommendations from local social media networks. Recommendations increase consumer trust and generate product desire (Mo, 2013). Understanding the Chinese market makes it easier for foreign companies to invest in China online eCommerce.

Tip# 3: Getting Through the Chinese Firewall.
Starting a business in China is easy once a company or an entrepreneur understands the practical details of the Chinese market. Kim (2013) maintains one of the largest obstacles to online selling is penetrating the Chinese firewall. The writer maintains the Chinese government saw it fit to establish a firewall, increasing internet censorship in China. Therefore, brands as well as web owners from the international market have to respect the nation’s guidelines and restrictions. Hosting an online business on the outskirts of China can be a problem due to the firewall. Hosting a new business in major cities throughout China can be expensive; therefore, a new business can collaborate with local network providers to excel in the Chinese market.

Tip# 4: The use of videos.
The demand for online videos in China is growing. According to Lau (2015), the ordinary Chinese citizen spends approximately four hours in a week watching online videos. On the other hand, YouTube is not a common site for watching videos, as the Chinese population is particular about sites that stream quality information and provide appealing professional advertisements.
Therefore, for a business succeed in the Chinese market it needs to carry out a proper market research. The Chinese online market is also growing at a fast rate. Businesses wishing to take advantage of the market need to understand the steps to take before entering the market.

In conclusion, Chinese consumers are particular about quality and prefer purchasing from recommended sites. Most foreign businesses need to consider collaboration as an important aspect of their business model if they want to enter the lucrative Chinese market

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