During the last few years, the e-commerce market of Hong Kong has grown astonishingly. Without a doubt, e-commerce plays an important role and affects the economy of Hong Kong. If you are looking to build an e-commerce company in Hong Kong, consider some popular online e-commerce platforms in Hong Kong. Various platforms are developed for both local and foreign sellers.
According to Statista the eCommerce market is projected to reach US$8,658m in 2021. Apart from this, the numbers are expected to show an annual growth rate of 10.5%, resulting in a projected market volume of US$12,879m by 2025. Such is the scope and incredible potential for the industry.
A unique factor about Hong Kong is finding a blend of mainland Chinese eCommerce platforms and foreign brands. Therefore, the number of options for you increases. With the rise in the number of options, there might arise difficulty in selecting the right marketplace to opt for. This article will assist you and share the list of the popular eCommerce marketplaces in Hong Kong. But before that, let us read about what an e-commerce platform is.
The e-commerce business in Hong Kong has emerged as the single biggest growth driver in the global marketplace. It is considered that if e-commerce is necessary to your business, then the solution you take is arguably one of the most critical business decisions you will make.
The primary function of an eCommerce platform is to allow a business to sell products and services online. Back in time, companies had to buy on-premise, standalone e-commerce software that required extensive I.T. setup and in-house management with specialized development teams. Now, there are various e-commerce software that offer the customer-facing front-end component of an online business. Like all other businesses, online companies need additional software to manage back-end functions, such as accounting, management of orders, management of the inventory, and customer service. It can get complicated when piecing together different software solutions. But, a software based on the software-as-a-service (SaaS) model came in as a savior and united all the needed commerce and business functionality into a single software. Nowadays, e-commerce business models allow customer service reps to have a single view of a customer across all channels.
Ecommerce platforms encompass all core business functions integrated into a single solution. To be precise about its functionalities, it encourages improved collaboration, regulates operational processes, and provides real-time data visibility across organizations. The importance of an e-commerce platform can be calculated by the number of functions it performs. This integrated platform cohesively performs the following positions:
The e-commerce programs have moved beyond single-purpose software that facilitates people to buy products and services online, simply.
Let us now discuss the best eCommerce platforms in HK.
The first one to hit the list is Tmall. It was launched by Alibaba in 2008 as a spin-off of Taobao and to feed sellers of more premium products. With time, Tmall has grown massively and is one of the largest e-commerce websites after Taobao. One thing that sets Tmall apart is that in Tmall you can get numerous high-end or foreign brands. The primary usage of the platform is done for the Business to consumer(B2C) and Business to business( B2B) services.
Founded early in 1998, JD is one of the biggest competitors to Tmall. The website is known for its advanced attainment and logistics inclinations with extremely high automatized processes. J.D. has two different platforms available. Jd has dedicated one platform for local sellers (JD.com) and the other for the cross-border eCommerce sellers (JD.hk). The primary difference between both platforms will be the audience reach. JD.com will allow you to achieve a more vast audience than JD.hk.
In JD.hk you can store the products in a bonded warehouse that is located somewhere in mainland China or a fulfillment center in Hong Kong. The goods are later exported directly to end customers in China. One major benefit that J.D. will offer is that, it is cheaper to start selling on J.D. than Tmall, and the entry requirements are not as harsh.
Taobao, another most influential eCommerce website in China, was founded in 1999, exactly one year after JD.com. It is easy to register and import products that aren’t necessarily bad as you can take hold of various distribution channels, which includes sales through bricks & mortar stores and online stores. Products in demand on Taobao primarily include:
Alibaba owns the platform and is widely used among buyers all over China, including Tier 1 – Tier 4 cities. Primary Chinese sellers use Taobao, and you cannot register on the website with a foreign company and import the products into China. Thus, you must test the products (when needed), register with local authorities such as the AQSIQ, and print Chinese labels. These are just examples of the steps required. Concede that you cannot open an online store with a Hong Kong company but will have to start a company in mainland China to sell on the website.
With more than 1 billion daily active users, Tencent’s WeChat messaging app is now also a platform for online shopping. The Gross Merchandise Volume for businesses running their own mini-programs in the app rose 255% in 2021, whereas the Gross merchandise value (GMV) for physical goods sold through those programs rose 154%.
The platform grew from more than just an instant messaging app. Being a WeChat user helps you buy movie tickets, book restaurants or hotels, and make small payments using the app instead of cash or credit cards. This has undoubtedly contributed to changing Chinese people’s lifestyles and consumer behaviors. WeChat also gives a platform for brands to get direct feedback from customers, especially for foreign companies to test the Chinese market before further investments.
Founded in 2002, DC Fever primarily focuses on digital products intending to present up-to-date information on digital cameras, lenses, tablets, mobile phones, and more. It is a gem for photographers and tech-savvy buyers. With almost 1 million enrolled users, it’s undoubtedly one of the biggest eCommerce websites in Hong Kong. You can get second-hand products as well on this site. The only drawback is that the website is not published in English.
Price.com.hk is one of the most widespread eCommerce platforms in Hong Kong. This platform promotes a user-centric experience along with big data analysis. It is basically a price comparison website where users can visit One brands’ official websites to get a summarized overview of the best deals available right now. This platform is also not available in English and can only be used in Hong Kong.
One brand accounting for a whopping 34% of U.S. online sales, Amazon, is the marketplace no merchant should ignore. A large number of merchants enter e-commerce with Amazon. Amazon offers “Fulfilment by Amazon” (FBA), where Amazon will automatically prepare and fulfill orders made on your Amazon store. Commodities with FBA are for Amazon Prime’s free 2-day shipping service, which has over 80 million subscribed shoppers and can assist your products to stand out. Additionally, FBA provides multi-channel fulfillment (integrating to platforms like Shopify), 24/7 customer service, and return processing for merchants.
Today, eBay has more than 200 million users around the world. Not only this, but it also has 80 million listings online at any given time. eBay has a presence in 37 markets globally and presents a platform for both buyers and sellers. It all started as a place to trade collectibles, and hard-to-find items but have now developed into a marketplace where you can sell practically anything. You can get anything and everything at eBay, right from everyday items like clothing, mobile phones, to even cars.
Now that you have a fair share of knowledge about an e-commerce business in Hong Kong, you might be thinking of starting your own e-commerce business in Hong Kong. Honestly, e-commerce platforms have come a long way in the past twenty years. No company should ignore the value of investing in an e-commerce platform in today’s era. Yes, one more piece of advice before you dive into the ocean of developing your dream e-commerce business. It is okay to hire a professional when in need. Someone who can help you is a better option than losing everything at once. If you need any expert assistance in forming your business in Hong Kong then contact Startupr. We can help you to start your dream business in HK.