China Imposes New Tax on Overseas Purchases

China Imposes New Tax on Overseas Purchases

China’s Finance Ministry announced that they would be raising the tax currently imposed on foreign goods that e-commerce companies ship into China to help their economy with consumption instead of relying on investment and industry. The new tax is said to be implemented on April 8, 2016 and will cover not only commercially imported goods but personally imported goods as well. This means that goods sent to individual customers in China from overseas will also be subject to import taxes, tariffs, and consumption tax. For example, tariffs on watches ordered from abroad are to be increased to 60% from 30% and on jewelry to 15% from 10%. With the new tax law, the Chinese government is hoping to encourage its citizens to purchase domestically instead of purchasing overseas. According to Fortune.com, although Chinese shoppers account for a third of global sales of luxury goods, only a fifth of those sales where made in mainland China while the rest of the purchases were made abroad either though e-commerce or by Chinese tourists who smuggle products into China to sell. Luxury consumption in China fell 2% in 2015, even though purchases by Chinese consumers rose 251% in Japan, 31% in Europe and 33% in South Korea. Many Chinese consumers prefer to purchase products abroad as they are sure to be genuine compared to the products at home. Products such as maternity and baby products (ex. baby formula and diapers) are bought overseas for safety issues and Chinese consumers have shown that they are willing to pay more for products such as cosmetics, infant formula and other baby products. The question remains if these new taxes will...

The Japanese Consumer Experience – Shipping & Packaging

Japan’s e-commerce market has grown significantly over the years. In 2014, online sales in Japan totaled to over $70 billion and by 2018, they are forecasting to grow sales to over $105 billion. In order to succeed in the growing e-commerce market in Japan, companies must be able to localize the customer experience as over 99% of the population only speaks Japanese. With the growing presence of the online space, customer experiences and expectations in Japan differ than that here in the US. 1. One day shipping is a domestic standard. It is very typical for customers to receive their orders the same or next day. Geographically, Japan is slightly smaller than California, and highly effective methods of shipping have been created. The top carriers such as Yamato, Sagawa, and Japan Post, all offer impeccable services as they are able to deliver to customers 7 days a week and even on national holidays. Customers that order from websites that ship near where they live, can typically expect their package to be delivered to them on the same day.         2. Packages are never left at the front door. If you live in Japan, you can expect that your packages will never be left at the front door. Carriers such as Yamato, Sagawa, and Japan Post will always knock on the front door and hand off the package to a person. If a customer is not home at the moment, they will leave a note attached with instructions for re-delivery and try again the next day regardless of the shipping method. It is not uncommon for a deliveryman to leave...
FedEx to Expand E-Commerce Reach in China, Japan: New services seek to simplify the international shipping process for merchants

FedEx to Expand E-Commerce Reach in China, Japan: New services seek to simplify the international shipping process for merchants

Source, The Wall Street Journal, Image source FedEx Corp. will expand its global e-commerce business in an effort to compete for the growing number of packages shipped to consumers from China and Japan, executives said Monday. The company, which in 2014 acquired Bongo International, a company that helps shoppers purchase goods from foreign retailers by automatically adjusting currencies, and customs and shipping costs, by location, is rebranding the business as FedEx CrossBorder. The company plans to expand its services to merchants in China and Japan by next June, said Chip Hull, vice president of the newly named division. The company already consolidates shipments for global e-commerce retailers in the U.S., Europe and Peru. Asia “is the second-largest region from an export perspective in the cross-border space, on par with Europe, and [is] growing at a faster rate,” Mr. Hull said. As global e-commerce grows at double-digit rates around the world, “Asia is certainly the 800-pound gorilla in the room.” FedEx’s international e-commerce efforts have come as other companies are investing in helping retailers with international online-shopping services. United Parcel Service Inc.acquired i-Parcel around the same time that FedEx bought Bongo, and Pitney Bowes Inc.acquired Borderfree Inc. last year. Deutsche Post AG’s DHL also offers international e-commerce services. The services seek to simplify the international shipping process for merchants who can’t track varying tariffs, shipping times and other factors when sending their products to different countries, a cumbersome and opaque process that experts say can turn shoppers off. Some larger retailers employ dozens or even hundreds of staff to arrange and track packages, while smaller merchants say orders that simply disappear...