How is DHgate.com? What is DHgate.com's transaction model?

How about Dunhuang.com?

DHgate.com is the world's leading online foreign trade trading platform. Its CEO Wang Shutong is one of the earliest e-commerce practitioners in China. In 1999, he co-founded Joyo.com and served as its first CEO. In 2004, he founded DHgate.com.

DHgate.com is the first website in China to provide B2B online transactions for small and medium-sized enterprises. It adopts a commission system and will charge new sellers registration fees starting from February 20, 2019[1]. Fees are only charged after the transaction between the buyer and the seller is successful. According to PayPal transaction platform data, DHgate.com is the first e-commerce website in Asia Pacific and the sixth in the world in terms of online foreign trade transaction volume. Its transaction volume in 2011 reached 10 billion.

What is the transaction model of DHgate.com?

Dunhuang.com's "pay for success" breaks the traditional e-commerce "membership fee" business model, which not only reduces corporate risks, but also saves unnecessary expenses. At the same time, it avoids competition with B2B Alibaba, Made-in-China.com, Global Sources, Global Market, etc. A standard seller does business like this: upload the characteristics, quotations, and pictures of his products to the platform, prepare and ship goods after receiving orders from overseas buyers; buyers pay after receiving the goods, and both parties settle trade in various ways. The whole cycle is 5-10 working days.

On DHgate.com, buyers can generate orders based on information provided by sellers. They can choose to purchase in bulk directly, or they can choose to purchase samples in small quantities first and then purchase in large quantities. This type of online small-amount wholesale generally uses express delivery, and express delivery companies generally act as agents for customs declaration within a certain amount.

For example, Dunhuang.com maintains close cooperation with international logistics giants such as DHL and FedEx. Based on the huge business volume of the network, it can reduce the equivalent logistics costs of small and medium-sized enterprises by at least 50%. Generally speaking, the number of such orders will not be too large, and some can save customs clearance procedures. Taking ordinary digital products as an example, the number of orders placed by buyers at a time ranges from a dozen to dozens. This kind of small transaction is more frequent, unlike traditional foreign trade orders, which may be placed once every six months. One order is almost the seller's "ration" for a year. "Selling goods on Alibaba B2B in the way of Taobao" is an interesting summary of Dunhuang.com's transaction model.

This is the end of the introduction to Dunhuang.com in this issue. If you want to get more knowledge about Dunhuang.com, please pay attention and we will continue to answer your questions~