eBay broker warehouse deal to help Chinese sellers sell to UK
In an media announcement entitled “eBay China Warehousing Deal Benefits All”, eBay Inc. reveals a new deal that they say will help Chinese sellers export to consumers in the US, UK, Germany and Australia.
eBay says the deal with Winit Corporation will “enable Chinese sellers more opportunity to reach overseas markets, providing much wanted inventory to consumers in destination markets like the US, UK, Germany and Australia. It also seeks to provide our sellers more business opportunities in categories such as Home & Garden, Parts & Accessories and for other large and heavy products, while improving the overall retail shopping experience for the customer.”
Apparently the partnership will offer Chinese sellers:
– A one-stop, cross-border supply chain solution, supported by overseas warehousing
– Full-package services ranging from international shipping to overseas warehouse management
– An end-to-end transparent tracking system and business consulting services including inventory management and business expansion.
eBay obviously wants more Chinese sellers exporting to markets such as the UK because the MD of eBay Greater China John Lin says: “We continue to invest in enhancing our China CBT (cross border trade) retail export business and this new partnership helps us bring even more CBT sellers to the market.”
I’m sure some of you will have something to say about this development. Chinese sellers have recently been in the news in the UK with regards to their VAT liabilities.
I give up.
The news broke a while back. Anyone close to Coalville can do a drive by to monitor activity:
Will ebay be making the country of origin of the seller clear by putting a nationality flag at the top of each listing? And have seller nationality as part of item specifics?
Will this stop Chinese sellers marking items sold the UK as “Gifts”?
So If I understand this correctly, Chinese sellers will send a shipping container full of stock to this UK warehouse, and when one of their super cheap items sells, it will be packaged and sent from the UK? They likely will evade VAT, Tax, and most other associated business costs which they seem to like doing so much, and essentially turn eBay UK into Ebay China!?
The only edge we have as a UK seller is that our stock is in the UK and can be with our customers within 1 working day. If the Chinese sellers are going to offer the same product for half the price, and can send it next working day, we might aswell pack up business now!
I hope I have read this wrong!
The Chinese already post stock from the UK while evading VAT and they do this openly with eBay allowing this fraud to continue without repercussions.
All this will do is accelerate the process for many smaller sellers who don’t have fulfillment options in the UK.
My advice would be to get out of any generic chinese made stuff now while you still can – that area will be totally dominated by them and eBay will probably give them preferences in their search engine (and lower fvf fees).
Focus on goods that don’t come from China to survive
Thanks James, I am aware that they are already doing this, albeit in a smaller and less publicised way. It seems that they are now massively upping the ante, and making sure that everybody in China knows it too!
Until now it hasn’t been a huge problem for us, as it doesn’t seem to be happening on a large enough scale, but it seems that the floodgates are now slowly opening.
I wholeheartedly agree with you on the generic Chinese Products, but I’m sure for many sellers it isn’t as easy as simply choosing a new product that isn’t generically made in China. In fact I would hedge my bets that 99% of the New Items sold on eBay are Chinese made or can be made in China.
Chinese will slowly lose their manufacturing competitiveness over the coming years. It is never too late to shift to other countries or move into niches or brands. You have time on your hand.
Just have to accept that eBay/Amazon will continue to facilitate open fraud until forced to and that regardless they can use their search / buy box algorithms to push particular sellers.
I often find myself competing for the buy box (Amazon) with Chinese sellers selling from China to the UK and with 85% positive feedback and the same price (or more) and less overall feedback. Basically metrics far worse in every single way. The unwitting customer makes a purchase taking 2-3 weeks to be delivered with a higher chance of bad service. Makes no sense.
Amazon wouldn’t allow this out of a UK seller so can only assume they allow this behaviour from the Chinese as they want to grab market share.
Slightly O/T but what happens with the customs declaration and eBay’s “Global Shipping Programme”?
According to HMRC’s fraud reporting line this is not fraud providing payment is made to someone outside the EU. They told me it was a known loophole.
To make it clear this is a partnership between ebay China and Winit Corporation.
ebay UK do not appear to be involved.
Winit will no doubt be charging Chinese sellers a fulfilment fee and they will also have to pay UK postage rates which as we know are far higher than China airmail rates. And of course ebay charge fees on postage. And I doubt that Chinese sellers using this service will gain special favour ebay UK fee wise. As far as ebay are concerned it is just another seller.
All this has to be built in to price goods are offered for sale at so it is not all doom and gloom!
The VAT thing is probably of more concern to the UK sellers than this Winit fulfilment thing.
Today’s New York Times:
’Consumer prices fell in the eurozone for the first time since 2009, according to official data released on Wednesday, putting further pressure on the European Central Bank to act to prevent a downward price spiral that could further damage the fragile banking sector and undermine growth for years to come.’
Obviously EBay are seeking to suck profit from the huge export potential offered to Chinese exporters selling their goods in the UK and to ‘control’ this operation to their own particular advantage via postal and warehousing facilities. It will also continue to ‘monopolise’ all sales to their advantage through the EBay sites. Another nail in the coffin of SMEs. It would be interesting to know how much (percentage wise) EBay will be charging these Chinese exporters.
The economic effect of the lowered consumer prices that will certainly follow will effect almost all consumer goods sales and will plunge the UK and other Western markets into an even deeper recession.
Where we could import and sell a decent quality item for £40 to the UK market, they sell directly In bulk for say £11 cutting out the middleman, or in other words UK businesses and destroying what consumers are prepared to pay for an item. The money goes straight from the consumer to China. No money for small UK sellers, no income tax, no vat. It’s time UK sellers took a stand and we all played by the same rules.
Is this destined for the new UK ebay warehouse:-
Not unless there is a new deepwater canal to the East Midlands that nobody noticed!
In the Daily Telegraph article it states that it can carry 900million tins of Baked Beans. I do not know a great deal about Baked Beans but do we buy or sell them to China???
were astonished you know little about baked beans the talking out your backside that occurs
All I know about Baked Beans is what I want to know about Baked Beans. Basically that I take the end off the can and heat them up and eat them.
If we are commenting on talking out of your backside and equating that with pollution. Isnt pollution blamed for Global Warming and all that involves including storms and adverse weather. Surely as your weather is considerably worse than the weather down here perhaps its your pollution thats to blame. I rest my case.
Get with the program guys.
China is here to stay and you have to compete with them.
Please stop this “its so unfair” crap. This is online. Embrace, adapt, compete, and succeed. Competition is a good thing and cheapest usually wins.
If you can’t compete then get out and change your occupation.
Long live the Revolution!! :)
What a stupid thing to say!
How can you compete with people breaking the law to undercut your prices? I thrive off of competing with other business, cutting prices where I can, haggling on bulk orders etc, but when your “Competitor” isn’t paying 20% VAT, Tax, and all other associated business costs, then it is impossible to “Compete” as it isn’t a level playing field anymore!
Breaking the law isn’t healthy competition, it is a criminal offence!
Report it then.
Frankly I have better things to do like selling MY stock rather than whinging about something I have no control over!! Lifes too short to waste time on crap.
Long live The Revolution!! :)
Good luck with that!
Its not luck.
There are many things I don’t like but I prefer to get on with what I can control and do what I need to do to be sucessful instead of whigning and wasting energy on something I have no control over and can not change.
China? Rahh, Rahh, Rahh… So what? Loads of buyers know its better to pay more and order from a reputable supplier. Buyer beware. Increasingly China is losing more and more because of thier shoddy “cheap” products, very long delivery times, and terrible “we don’t give a shit” type of customer service. Their bubble will burst, and then we can all start whinging about the next problem.
I plug that gap and thrive. I suggest you all do the same. Focus on selling product and stop worrying about something you have no control over.
Long live The Revolution!! :)
I used to import decent quality fashion watches and did really well for a good few years.
The trick is to try sell the products they don’t, or the best chinese made watches that they haven’t got yet. As soon as they start selling the same model from warehouses in bulk its a race to the bottom on price and game over.
Its become to hard to keep ahead of them and cassini has pretty much burried smaller sellers like me. Plus, every man and his dog in the uk seems to have got involved, its become saturated with uk sellers who have had the same idea, when I began in 09 there was hardly anyone doing it.
I’ve switched to vintage and luxury watches as there is a stronger european and western market and the chinese arent importing in bulk and posting in dusty little bags from warehouses, marked ‘gift’. Learning to roll with the punches.
The real trick is finding something WITHOUT competition, or at least very little competition.
I have a nich area. For the first 5 years I was the market leader and kept prices VERY high. By buying agressivly and purchasing all random stock I ensured that I was the only place you could get these items unless you either took a chance on an auction, waited for a random seller to clear his clutter, or paid a premium buying new. Then two assholes saw me making money and decided to try and mussle in. It became a Dutch Auction but I made sure that I was ALWAYS the cheapest. I took the view that I would sell at a loss just to stop them making sales, and even though I may lose money on one item, many customers will buy something else at the same time and I will make a profit on that. Then there is the also benefit/value of a customer gained who is likely to come back in the future or recommend us to his friends. I knew if my competition was only making penny’s then it would only be a matter of time before they would eventually fall.
Combined with great customer service this approach worked and last year my “competitors” went under, mainly because they both had retail shops with an annual overhead of a least 50 or 60k. I am only mail order and work from home and I would have to sell a shit load to make £60k! They tried but could not compete against me. They were stupid trying. One is now a bankrupt, and the other is up to his ears in debt.
I feel nothing for them, frankly they deserved it by trying to capitalise on something someone else has created. They were that sad type of people who can’t figure anything for themselves and feed of the backs of others. They deserve their demise and now they are gone I have zero real competition so I have whacked up my prices and business is on the up.
Long live The Revolution!! :)
Seem to be a lot of contradictions in what you are saying. One minute you are critical of people concerned of being undercut, by china ( who have sat and watched to see which products sell the best, then undercut, just like your competitors) then you criticise your competitors for doing the same
There is no contradiction.
Let me be clear:
1) Competition is a good thing when done right (not like the 2 assholes who see someone doing well, can’t figure a business themselves so need to copy someone else in the hope they are on to something, and then do it in a cheap manner with poor service and ultimately can’t survive). It’s taken me six months to get market prices back up. During the previous 2 years buyers were getting a steal! Every business LOOKS easy but few are. I welcome quality competitors who are sensible with pricing and provide great service but any fool should be able to see a Dutch Auction is pointless (and especially if your retail shop has a £60k P/annum overhead! Wanna compete? No worries, price similarly (I don’t mind someone selling for a little less as my reputation will ensure I still sell my stock) and provide great service. My prices are what they are because less is a fast road to insolvency so don’t be a don’t be a dick by selling at rock bottom. Wanna compete? Fine, but don’t be a flea on the backs of others and drag down the market in the process.
2) China? I really couldn’t give a toss. Its an open market so let them compete. The best will survive. Most people I speak with have been burnt by China and now avoid it. That bubble is already bursting. Is it worth it? That’s up to the individual but I think many people now realise its better to pay a bit more to someone else. Buyers beware!
3) Tony, I’m guessing you’re from China so maybe you have a problem. My attitude to online is embrace, adapt, compete, and succeed. Competition is a good thing but quality and service is essential, and especially in the long term. If you can’t compete long term then you probably don’t have a future so maybe you should consider changing your occupation.
Long live The Revolution!! :)