Trade Spat Fails to Stunt Walmart China Cross-Border E-Commerce Growth
Le Yan
DATE:  Oct 19 2018
/ SOURCE:  Yicai
Trade Spat Fails to Stunt Walmart China Cross-Border E-Commerce Growth Trade Spat Fails to Stunt Walmart China Cross-Border E-Commerce Growth

(Yicai Global) Oct. 19 -- China-US trade frictions have had no obvious impact on cross-border e-commerce, which mainly deals in food, daily necessities and other fast-selling goods that have preserved their original value because they are largely untaxed. Some companies, like Walmart China, have even logged rapid growth. 

After two years' development, over 100,000 items from 27 countries and regions are now for sale in Walmart's flagship store on the JD Daojia e-commerce platform of China's JD.Com, covering 23 categories including maternity and child, beauty, personal care, nutrition and health, food and beverage, children's toys, household items and foreign language books.

Its cross-border e-commerce has entered a rapid growth phase, Walmart said. Sales at its flagship store rose over fourfold from January to September compared with the same time last year, while the ranks of its buyers increased threefold over the same period.

Various overseas shopping forms such as proxy purchases and direct mail make it difficult for consumers to choose products, and they also worry about their quality and the integrity of the buying process, said Yan Qing, senior director of the cross-border e-commerce of Walmart China, adding sales at the company's flagship stores have been fairly good in the past two years.

Goods affected by China-US trade frictions are mainly in the technology sector, while the ratio in trade and retail is relatively small. Companies plying cross-border e-commerce can increase their direct mail ratio to shrink the tax bite and adjust their goods categories and business areas.

Importing goods in cross-border e-commerce differs from that in traditional trade, for which the taxation is also different, sector insiders said. Therefore, imports by retailers such as Walmart China are barely affected by duties.

The US government announced tariffs on USD200 billion in Chinese imports effective Sept. 24, with their rate to rise to 10 percent and 25 percent from Jan. 1.

Editor: Ben Armour

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Keywords:   Walmart,Cross-Border E-Commerce,Trade Frictions