Tmall Global Merchant Acceptance Standards of 2022

Tmall Global Merchant Acceptance Standards of 2022

Statement by Tmall Global: to meet Chinese consumers’ constantly rising taste and power of consumption, Tmall Global decides to recruit the overseas merchants globally for Chinese high-end consumers. Merchants must possess corporate entities outside Mainland China, overseas registered trademarks, and overseas retail qualifications, and boast excellent credit standing and operating status.

Tmall Global does not authorize any institution as the agency for the recruitment of merchants temporarily. Please refer to the official merchant attraction webpage for application procedures and pertinent charge descriptions.

I. Instructions on investment attraction:

1. Tmall Global can decide whether to allow merchants to join the platform according to the actual conditions (including but not limited to brand demands, business performance, and service quality). In addition, Tmall Global can ask for other qualifications from merchants during joining application and the following business operations. Tmall Global will update the joining and business operations standards occasionally in accordance with related laws and regulations of China, developments in various sectors, and consumption demands.

2. All the information and documents provided by merchants shall be authentic and accurate.

(1) Merchants must ensure the authenticity of information and certifications submitted during joining application and the following business operations. They shall verify the authenticity and validity of related certifications by themselves first if the documents (including but not limited to trademark registration certificate and letter of authorization) are provided by the third party. Any merchant whose information or certifications have been found to be false will be added on the dishonest customer list and be barred from cooperation with Tmall Global.

(2) The merchant shall truthfully provide the store operating entity and relevant information, including but not limited to the identities, addresses, contact information, qualifications, and licenses of the agent operator and actual store operating entity. If Tmall Global has regulations regarding the change of merchant information and data, the regulations shall be followed. If the merchant changes the information listed, it shall inform Tmall Global in writing 15 days in advance.

II About Merchant Recruitment

1. Tmall Global mainly recruits merchants through targeted invitations, applications submitted by merchants, and selection from the hot brand pool. For more information, see the Tmall Global Business Categories List.

2. The business owners shall be entities in Hong Kong, Macao, Taiwan, and abroad.

3. Priority will be given to renowned physical marketplaces and B2C websites in Hong Kong, Macao, Taiwan, and abroad, as well as famous international brands that have not yet entered into the Chinese market.

III. Tmall Global Store Types and Related Requirements

1. Brand flagship store

Stores opened by brand owners or exclusive dealers directly authorized by trademark owners on Tmall Global.

In principle, the brand flagship store can only sell goods under the corresponding brand. If the store brand is a group brand, it can sell goods under multiple brands of the group. The goods must directly come from the store brand trademark holder.

2. Marketplace flagship store

Stores opened directly on Tmall Global by the brand trademark owners of offline chain supermarkets, marketplaces, or online B2C websites. The goods sold by the merchants can be traced back to the class-35 trademark holders of the store brands and the corresponding trademark holders of the goods. Such stores can be opened through targeted invitations or applications submitted by merchants.

3. Industrial marketplace flagship store

Stores opened directly on Tmall Global by the brand trademark owners of offline chain supermarkets, marketplaces, or online B2C websites that operate product categories of several industries (such as Clothing, Maternity & Baby, Beauty, Personal Care). If a store that meets the above conditions needs to sell goods of brands of non-designated industries, the store shall provide the tier-1 authorization or purchase invoices from the store brand. The goods sold can be traced back to the class-35 trademark holders of the store brands and the brand owners of the goods. The range of products operated in a single store is limited to three main industries, and the others are non-main industries. In addition, the platform will comprehensively assess the stores’ operations, services, and other performance indicators. A store may be restricted to operating product categories of only one industry. Such stores can be opened through targeted invitations or applications submitted by merchants.

4. Exclusive shop

It refers to Tmall Global stores with store opening authorization from brand trademark owners.

5. Franchise store

It refers to stores operating two or more brands under the same business category of Tmall Global.

6. Galaxy franchise store

Franchise stores selling the products of direct-sale stores of Tmall Global or brand flagship stores thereof on commission without restrictions on business categories.

For more information about the qualifications for applying to join Tmall Global, see the Tmall Global Merchant Qualification Standards and the Detailed Rules for Qualification of Tmall Global Merchants in Operation. Still, there are certain exceptions to the rules.

IV. Security Deposit/Annual Software Service Fee/Rates

1. Security Deposit

Any merchant operating on Tmall Global must pay a security deposit, which is used to ensure that the merchants run their business in accordance with the rules of Tmall Global and pay the penalties to the platform and customers according to the Tmall Global Merchant Services Agreement and related rules and regulations should any violation occurs. The amount of security deposit varies depending on the type of stores. For more information, see theTmall Global Fee Standards.

2. Annual Fee

Any Merchant operating on Tmall Global must pay an annual fee. The amount of annual fee is based on A-level categories and it is divided into two rates: RMB 30.000 and RMB 60.000. Please refer to the Tmall Global Technical Service Fee Breakdown for Different Categories for corresponding annual fee standard of different A-level categories.

3. Real-Time Deduction of Software Service Fee

Any merchant operating on Tmall Global must pay a software service fee based on a certain percentage of their sales (referred to as “rates”). For software service rates of different categories, please refer to theTmall Global Technical Service FeeBreakdown for Different Categories.

V. Restrictions for Joining

1. Merchants whose stores have been terminated by Tmall Global due to serious violations of rules and regulations and fraudulent qualifications (excluding shipping from China) will be banned from launching stores on the platform permanently. The scope of restriction includes but is not limited to: Reopening the terminated store by changing the business entity, and applying for opening new stores by business entities whose stores have been terminated due to serious violations.

2. Merchants who have voluntarily withdrawn from Tmall Global twice in a natural year will not be allowed to reopen their original store with the same business entity or by changing the business entity within six months from the day of the second withdrawal.