SILK ROAD TO CHINA A STEP BY STEP GUIDE

Agenda  A Brief Introduction of the Market The Road to China: A Step by Step Approach Q & A

A Step by Step Approach to China Getting There Without Travel  Jumpstart the site for China market  Get the full site ready 

Getting Your Feet Wet  Add local payment/logistic options Moving the operation to China Get listed on Tmall.com and JD.com Other considerations

Jump Start Your Site $180.00

A quick update for your global site to be China market friendly in 8 weeks.

$161.00

$160.00 $140.00 $120.00

2012 2013 2014 2015 2018

$100.00 $80.00

Why bother??

$60.00

$39.80

$40.00 $20.00

$24.10 $7.70 $12.25

$0.00 2012

2013

2014

2015

2018

Cross border eCommerce from China

Jump Start Your Site – A Quick Update A quick test goes a long way and things to watch   

Locally issued CC Great Firewall issues Mobile readiness

Shortlist of Changes    

Adding language/currency pack Adding content Adding more shipping options Adding payment options

Background: How People in China Receive US Products

An unique model has been developed to facilitate the cross border eCommerce to reduce the cost and tax.  Virtual address has been setup in NV or OR.  Consumer in China will have their goods shipped to the address above  Consumer pay additional fee to have them shipped into China.  In some cases, these operators also offer one-time use CC.

Shipping Cost Comparison $

to $10 first lb + $4 to $5 per lb after that.

(USPS: $ .

first lb + $6 per lb after that)

Update the shipping method  Adding HOWTOs  Adding shipping methods  Let Operation knows!

Background: How People in China Pay for US Products

How?  CC issued in China.  CC issued in US/Europe.  Gift cards.  Borderless + Alipay

Concerns  Charge backs: Know the differences  Duplicated address: Let operation know.  Spell of names: Adding a hints or how-to

Jump Start Your Site: Contents update Welcome message, Banners and Hints

Jump Start Your Site: Language & Currency Pack

Get The Full Site Ready  Design Considerations  Customer Service Options  Checkout & Registration Process  Product Information Localized 

Social Integration



More Payment/Logistic Options

Design Style Update

Live Chat is a Must

A Simpler Checkout and Registration Process

Product Information

Social Integration: WeChat & Weibo

Get The Site Mobile Ready  •30% transaction are mobile •A mobile society •WeChat Commerce

•Responsive •Mobile Site •Apps

SILK’s Roadmap to China Getting There Without Travel 1. 2.

Jumpstart the site for China market Get the full site ready

Getting Your Feet Wet 3. 4. 5. 6.

Add Local payment and logistic options Moving operations into China Get listed on tmall.com and jd.com Other considerations

Launch Business in China: Typical models Mainly In US  All operations stays outside of China  Bordlerfree payment + Special shipping options.

Mainly In China  Full team in US and in China

 Warehoused in China, with website hosted in China

Outsourced Model  Most of the core team are outside of China  Web Support/Warehouse/Fulfillment/Marketing outsourced

Outsourced Operation is Reality in China

Typical Service Offered  Merchandising Site Content Management Order Management Warehousing & Logistics Customer Services  Product Management

Before Moving Site to China: Further Update

 Checkout & Registration Process  Product Information Localized 

Social Integration



More Payment/Logistic Options

Payment Options

Typical Shipping Options

Moving The Site to China

Hosting/Infrastructure Concerns Great Firewall Concerns System Integration Other Business Concerns

Get Into The Market Place Market place Dangdang, 1.20%

Jumei.com, 0.70% Tencent, 0.80%

No.1 store, 0.60%

Others, 7.90% Tmall

Amazon, 1.50% VIP.com, 1.90% Gome, 3.30%

JD Suning Gome VIP.com

Suning, 3.60%

Amazon JD, 21.10%

Tmall, 57.40%

Dangdang Tencent Jumei.com No.1 store Others

Tmall Global vs Regular Tmall Tmall Globa    

No Chinese business license required Fulfilled from outside of China, with RMA/CSR must in China Payment settled in native currency $25K Deposit + $5K~10K Annual + 5%

Regular Tmall Store     

Chinese business license required All operations in China, including fulfillment Payment settled in RMB $8K~50K deposit + $5K~10K Annual + 5% Large penetration + low shipping cost + low warehouse cost

TD Worldwide vs Regular TD Store Tmall Worldwide    

No Chinese business license required Fulfilled from outside of China using JD’s own network Payment settled in native currency $9K Deposit + $2K Annual + Transaction (5%~8%)

Regular Tmall Store     

Chinese business license required All operations in China, including fulfillment Payment settled in RMB $2K~8K deposit + $2K Annual + Transaction (5%~8%) Large penetration + low shipping cost + low warehouse cost

Connect Them All using Magento

Key Functions Blocks Product Management  Publish product info to eBay and other channels.  Publish product info to 3PL in China.  Store management

Order Management  Download orders from 3PL in China to ERP  Download orders from Magento/eBay to ERP  Update order status from ERP to Magento and eBay

How can we help you? Your eCommerce Partner for China Market eCommerce Strategy and Planning for China Market Omni Channel Strategy Get Your Magento Site Ready Launching your JD and Tmall store Assist in locating operation partners in China Marketing

Q&A

SILK Software Corp. Dong Xu [email protected] 949-748-3706