What is DHgate.com?

Is DHgate.com Safe. As an innovator of B2B e-commerce in the field of international trade, DHgate.com (www.DHgate.com) fully considers the peculiarities of international trade and integrates emerging e-commerce and traditional international trade to provide professional and effective operations for international trade. The information flow, safe and reliable capital flow, fast and easy logistics and other services are a major innovation in the field of international trade and opened a new chapter in the field of China’s international trade.

The status of DHgate.com:

Since DHgate.com (www.DHgate.com) can greatly enhance the international competitiveness of Chinese export-oriented small and medium-sized enterprises, and promote the development of key industries and regional economies, the Ministry of Information Industry Management and Certification Center for E-commerce Organizations has listed it as a demonstration and promotion unit The China Association for International Cooperation of Small and Medium-sized Enterprises and the China Small and Medium-sized Enterprises International Cooperation Coordination Center, which are affiliated to the National Development and Reform Commission, also regard it as strategic partners. DHgate.com (www.DHgate.com) will continue to work hard to explore and forge ahead, determined to become the leader of e-commerce in China’s international trade field, and make the greatest contribution to China’s numerous suppliers and the development of China’s international trade.

DHgate.com’s service model:

DHgate.com is the first B2B website in China that helps Chinese SMEs engage in online international trade, similar to B2B eBay. Unlike other B2B websites that provide information and charge membership fees as the main profit model, DHgate.com makes profits by collecting transaction commissions from buyers. Sellers can enjoy low-cost services such as no registration fee, free certification, no product login fee, and no product display fee on the platform. After the buyer pays, the seller can deliver the product to the buyer by express.

 

The advantages and disadvantages of DHgate.com V.S. Alibaba

The business and characteristics of each e-commerce platform are different. Today I will summarize the difference between DHgate.com and AliExpress. I hope to help you!

About the difference between DHgate.com and Alibaba Express

DHgate.com is the wholesale and procurement of small and medium-sized enterprises, which is an online foreign trade B2B platform. Compared with Alibaba, an information trade B2B platform, it is also a second-generation B2B.

DHgate.com does is e-commerce online trade, that is, direct online transactions, and buyers are basically wholesale, and the products are small and medium.

Alibaba’s SuperPay is basically similar in form to DHgate.com. It also deals with small and medium-sized trades. However, SpeedBuy is just established and not mature yet. DHgate.com has been doing this since 2004, and it is currently doing so. There is a big problem, and that is the serious disharmony between buyers and sellers. In other words, many sellers who are currently engaged in Quick Buy have no orders, which is more difficult to do.

Because Alibaba, everyone knows that it is a large-scale foreign trade information platform, and his registered overseas buyers generally buy large-scale goods and large-scale wholesale. A lot of the travel is by sea, and Alibaba’s current express sellers sell things that are not in line with the appetite of his original overseas registered buyers, that is, they are not in line with the market. In addition, although it is also free to do the express buyout, if it is not a member, the review is very slow, and the original Alibaba members need to charge a small amount of fee, and they can do the express buyout smoothly, and they can only do it if they are members.

Of course, DHgate.com currently has some problems, such as product review, sometimes there will be a lag phenomenon. If your product upload is not very and standardized, the product review will be very slow, the photo is not clear, and the product description is not detailed. All will lag behind, which means that the product description will be prioritized for review. In addition, DHgate.com has always been criticized for the problem of disputes. Before, there were malicious buyers. Once disputes occurred with the sellers, they rose to the platform for ruling. If the evidence is insufficient, it is likely to cause harm to our domestic sellers. Now Fortunately, the first order of a new seller will not cause the phenomenon of being blocked due to the dispute rate. In the past, the first order was the dispute, and the account was basically finished.

 

At present, the main reason for this is that the seller’s products may have product descriptions that do not conform to the product description. Starting in March, DHgate.com has begun to vigorously block some malicious domestic buyers, some dispute rates, and buyers who sell some fake products. Buyers with high refund rate disputes. A group of sellers have been blocked. These sellers have been complained by buyers before. The dispute rate is too high. DHgate.com has also begun to rectify it vigorously.

 

Although DHgate.com and Alibaba International are both B2B websites, there is a big difference between the two websites. I have summarized the advantages and disadvantages of DHgate.com and Alibaba International Station. The main points are as follows:

1. Development pattern: Alibaba International Station is the world’s leading international trade B2B e-commerce platform, and has been ranked among http://Alexa.com international trade, e-commerce, trade market, import and export trade websites Ranked No. 1 in the world, it has been rated as the “Best B2B Website in the World” by Forbes Magazine in the United States for eight consecutive times. DHgate.comhas been online for 16 years since it was launched in 2004. Although it has completed 4 rounds of financing during this period, it has not yet been listed. Therefore, DHgate.com’s international influence and popularity are relatively low. This can also be seen from the website traffic. According to the statistics of http://Alexa.com, the daily average traffic of Alibaba International Station is more than 40 times that of DHgate.com.

 

2. Product coverage is different:

3.   The products on Alibaba International Station have basically covered all industries, from light industry to heavy industry. All customers can find the products they want on Alibaba International Station. DHgate.commainly focuses on daily consumer goods, while industrial products are relatively rare.

 

3. There is a big difference in the charging mode:

4. Alibaba International Station mainly collects membership fees and advertising fees. There are two types of membership fees. Basic export members are 29,800 yuan a year, and Jinpinchengqi is 80,000 yuan a year; advertising costs are mainly foreign trade direct Car, the first recharge is 10,000 yuan, and later it will be a multiple of 5,000. DHgate.com’s charging methods are membership fees, advertising fees, and transaction commissions. There are two membership fees, 9800 and 16800; advertising fees are similar to the foreign trade through train at Ali International Station; transaction commission fees are different, and the platform will According to the size of a single order and the type of goods sold, commissions ranging from 0.5% to 19.5% are charged to buyers.

Fourth, there are big differences in suppliers: Most of the suppliers on Alibaba International Station are distributors and factories. The sellers of DHgate.com are mostly individual sohos, and they are generally small in scale.

 

Why are DHgate.com online products sold so cheaply?

 

In many countries, Chinese products are synonymous with “cheap”, and most ordinary consumers are basically happy to see the influx of Chinese products. However, will local sellers and authorities have the same attitude?

Russia wants to curb cross-border e-commerce

 

Vladimir Stupnikov, CEO of Russia’s emerging e-commerce platform SPUTNIK, said: “At present, the governing body of the Russian Federation is seeking an effective solution to curb the development of cross-border e-commerce.”

 

It is understood that the reason Stupnikov launched the SPUTNIK platform is because of the increased demand for “cheap goods from China” by local consumers and “Chinese suppliers are eager to supply the large-scale and rapidly growing Russian market.”

 

The goal of the platform is to first cooperate with retailers from China and Southeast Asia, and then with companies from the European Union and Russia, and strive to attract local consumers who “do not trust foreign platforms” and provide them with cheap fast-moving consumer goods and household products. Electrical appliances, clothing, shoes, etc.

Stupnikov said that last year, local consumers saw a surge in online shopping from Chinese sellers. He attributed this phenomenon to the attractive pricing of Chinese products. Low-cost products, coupled with a seamless shopping experience, are the key to consumers.

 

However, Stupnikov said that the goal of the Russian Federation is to create a fertile land for Russian players to reap the fruits of domestic trade. Factors such as saturated competition from East Asia have made Russian companies compete for consumers’ wallets.

 

Russia lowers import tax threshold

 

At the beginning of this year, the government of the Russian Federation implemented a new legislation aimed at lowering the import tax threshold, which will make consumers bear the cost of purchasing high-priced goods in non-Russian territories: starting from January 1, 2019, through land and sea The threshold for tax-free purchase of imported goods by individuals entering the Eurasian Economic Union countries is reduced to 500 euros, and the total weight of the duty-free goods cannot exceed 25 kilograms.

Russia’s next plan to control overseas competition is to significantly reduce the import tariff threshold: from January 1, 2020, the import tariff threshold will be reduced to 200 euros, and the tax rate will be reduced from 30% to 15%. For Russian consumers, buying goods from abroad has become a luxury.

 

Obviously, this move will significantly reduce competition in the Russian market, and domestic transactions in Russian e-commerce may skyrocket, but it is not conducive to promoting the healthy competition required for innovation in the country.

 

Types of DHgate.com Online Suppliers

 

There are three main ways to purchase goods from DHgate.com’s foreign trade e-commerce: offline wholesale market, online mall wholesale, and factory supply.

 

1. Offline wholesale market

 

That is to say, according to your area, you can purchase goods from the local or surrounding wholesale markets. The wholesale markets have a large number of products and a complete range of products. There is a lot of room for selection, and you can shop for many.

 

The offline wholesale market is suitable for sellers who have zero foundation and want to test foreign trade.

If you want to be a seller of a single category, you can find a more professional wholesale market nearby. If you want a multi-category business, you can find a large multi-category wholesale distribution center nearby.

 

The most obvious advantage of purchasing from the offline wholesale market is that you can shop around and bargain face-to-face, and this method of purchasing is very safe. Everyone can see the real product, easy to get the goods, and the supply is stable.

 

The disadvantage of this purchase method is that the purchase price is higher than the other two methods, because these wholesalers are often intermediate links in the commodity circulation channel, and if you need to purchase a large quantity of goods, the offline wholesale market may not be able to satisfy .

 

2. Online mall wholesale

 

This method is to purchase from online shopping websites, mainly integrated websites such as Taobao and 1688, or wholesale websites of a single industry.

 

Online mall wholesale is suitable for part-time sellers.

 

The advantage of this purchase method is that the purchase can be completed without leaving the house, the operation is flexible, and it is not restricted by time, region, origin and other aspects.

 

The disadvantage of this purchase method is that the actual product cannot be seen, it is difficult to see the quality of the actual product from the picture, it is more troublesome to return, and it is prone to damage in the logistics process, which is not suitable for importing some vulnerable products.

3. Cooperation with the factory

 

This method is mainly to purchase goods from the factory and establish a cooperative relationship with the factory. You can find factories locally for cooperation, or you can find factory information on informational websites. Here we remind everyone that it is best to conduct on-site inspections.

 

This method of cooperation with factories is suitable for sellers who have a certain trade foundation, hope for long-term development and have a large demand for products.

 

The main advantage of this purchase method is that it has a price advantage, and the factory can customize it according to special requirements. If a stable cooperative relationship is established with the factory, the stability of the supply of goods will also be guaranteed.

 

The disadvantage of this purchase method is that it is difficult for individual sellers to achieve a cooperative relationship with the factory because of the small demand in the initial stage. If it is difficult to cooperate directly with the manufacturer, you can first establish a fixed cooperation with some first-level agents to obtain a good purchase price.

How does DHgate.com make an ecological cross-border B2B platform?

DHgate.com, a B2B cross-border e-commerce export platform established in 2004, has “newed”.

“DHgate is a centralized scenario for global wholesale buyers, intensive and efficient; MyyShop is a decentralized scenario for the SaaS model for global distribution groups.” DHgate.com Chairman Wang Shutong explained in detail at the DHgate.com Ecological Partner Conference held a few days ago The company’s “dual drive engine” development strategy.

According to reports, DHgate is a B2B online trade and service platform operated by DHgate.com for 16 years, and MyyShop is a cross-border SaaS product newly launched by DHgate.com to serve overseas small b distributors. Based on the trend judgment that “decentralized e-commerce brings new incremental markets”, DHgate.com stated that it will rely on these two engines to build a more complete ecological cross-border e-commerce export platform.

The rise of overseas “new micro-businesses”

According to a survey conducted by OC&C, a retail industry strategy consulting company, the Z generation born after 1997 is an independent and “borderless” generation. Their buying behavior is more willing to happen in decentralized scenarios than mainstream e-commerce platforms. This explains to a certain extent, why overseas websites with independent domain names (independent sites) will become popular compared to “centralized” third-party e-commerce platforms.

When it comes to “decentralization”, a new generation of e-commerce shopping has begun to grow in more social buying scenarios such as social distribution and live delivery, in addition to channels such as independent stations.

According to a research report released by Influencer Marketing Factory, 46% of Gen Z and Millennial consumers in the US market have purchased products on social e-commerce or live broadcast platforms. In 2020, the number of shopping users on social e-commerce platforms in the United States will increase by 25% and is expected to increase by another 13% this year.

Wang Shutong, founder of DHgate.com, shared a short story in his speech:

Meria is a Zumba dance teacher from Texas, USA. She has more than 3,500 followers on Facebook, and the fitness, dance, and weight management content she shares are also very popular. The epidemic prevented Meria from taking dance lessons in the classroom, so she began to find new sources of income, and wanted to sell related products in her field of expertise through the “friend circle” of online social networking. But for the e-commerce company Xiaobai Meria, the competition is too fierce to enter the traditional e-commerce platform; to use the site-building platform as an independent site, the thresholds for supply chain, product selection, logistics, and marketing are too high.

“In the end, Meria chose MyyShop to solve all the processes of supply chain, product selection, logistics, and marketing.” Wang Shutong said,

There are a large number of “new micro-merchants” like Meria born overseas, which will promote the rapid development of the B2B service economy, because they need more complete transaction services to solve all problems in one stop.

B2B cross-border e-commerce releases more opportunities

Data show that from 2020 to 2021, the compound growth rate of global B2B e-commerce transaction scale is 17.5%. B2B growth is strong in major e-commerce countries in the world.

According to Forrester’s estimates, in 2023, the scale of B2B e-commerce in the United States will exceed US$1.8 trillion, and its share of total B2B sales will rise to 17%, with a compound annual growth rate of more than 10%; Europe’s Germany, France, Italy, and Spain With the 5 countries in the UK, the scale of B2B e-commerce will exceed US$2.8 trillion in 2024.

“Cross-border e-commerce B2B has ushered in a trend.” Li Chao, chief analyst of iResearch, pointed out that at present, the B2B industry must not only do a good job at this stage of transactions, but also lay a good foundation for the next service stage. This is why, in addition to the B2B online trading platform and the foreign trade integrated service platform, the B2b2C platform was born.

“The first’B’ is the supplier and the majority of producers. The second’b’ is not the big B in the traditional perception, but the small b, which resembles the role of distributors. They are in the’today without tomorrow’ ‘Status requires a large number of companies to empower them. For the’B’ at both ends, at present, their demand for services is greater than their demand for transactions.” Li Chao said. These services mainly include cross-border transactions, operational services, warehousing and logistics, and financial payments.

In Wang Shutong’s view, DHgate.com has seen new opportunities on this B2B cross-border e-commerce track where it is best at. MyyShop will build on DHgate’s supply chain advantages, big data accumulation, and contract performance capabilities for more than ten years. Shaping the B2B ecosystem of cross-border e-commerce.

“Use SaaS to serve the new global micro-business forces that have emerged on social media, and at the same time open up incremental markets for Chinese factories, suppliers and brand owners.” She said.

How to make an ecological platform?

According to Hou Jianchen, the person in charge of the platform operation center of DHgate.com, most of the “new micro-businesses” (that is, overseas small b distributors) do not have complete e-commerce capabilities. To be the “enablers” behind them, they need to provide A complete set of solutions. As long as they import traffic and have fans place an order, MyyShop’s fulfillment system will deliver the goods directly to their fans.

The original method is that sellers order, sell goods, and guide shopping by themselves, but now they need a complete ecological platform that can incorporate all resources and can solve all problems in one stop. For example, in logistics, timely delivery within the same city, customs clearance, back-office management tools, and even issues such as reasonable tax avoidance. “Hou Jianchen said.

At the same time, in response to the pain points of upstream supply-side sellers, DHgate.com also released the “four new” packages.

It is reported that in terms of “new products”, DHgate.com will launch a preferential policy for brand sellers with a commission as low as 1.5%; support the shortest T+1 withdrawal cycle for category professional sellers; and launch a dedicated account manager for industry and trade sellers. At the same time, DHgate.com platform will also support one-piece sale, providing a combination of on-site marketing tools including Seller Coupon, seller alliance, and on-site advertising.

In terms of “new markets”, DHgate.com will enter the African market represented by Morocco in the future, and will build a local French team to improve its Western-language station services in Spain, the Spanish-speaking area of ​​the United States, and the Mexican market. In addition, new sites such as Ireland, the Netherlands, Poland, Japan, and Sweden are already in preparation.

In terms of “new technology”, DHgate.com will launch three smart applications of “intelligent product selection”, “intelligent marketing” and “intelligent matching” based on cross-scenario big data and AI artificial intelligence. Intelligent product selection can implement recommended product selection through AI algorithms. Intelligent marketing uses AI Coupon to help sellers set up coupons that are most suitable for buyers, and intelligently match corresponding personalized product recommendations to achieve “goods looking for people”.