On 8 November 2014, China Food and Drug Administration (CFDA) issued the Cosmetics Supervision and Management Regulation (draft for comments) which stipulated that on-line cosmetic manufacturers and operators have to make real-name registration on the third-party platform. Besides, the third-party platform providers will be responsible for the management of this business. In this background, did the famous Chinese on-line shopping centers improve their cosmetic access requirements?
n The access requirements for cosmetic products in some famous Chinese on-line shopping centers. (The access qualification of products)
n The access requirements for cosmetic operators in some famous Chinese on-line shopping centers. (The qualification of enterprises and tariff standard)
No. |
On-line platforms |
The qualification of enterprises |
Tariff standard |
1 |
T-mall |
①The requirements for flagship stores in T-mall : ① The copy of business license of cosmetic enterprises. ② The tax registration certificate of cosmetic enterprises. Nationalor local tax certificate are both acceptable. ③ Organization code certificate. ④ The approval license of bank account opening. ⑤ The copy of ID of legal representative (both sides). ⑥ The copy of ID of shop representative (both sides). ⑦ Trade mark license or acceptance notice of trademark registration. ⑧ Authorization issued by enterprises to Alipay. ⑨ Product list.
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① Security deposit : according to the difference of store properties and brand state, security deposit can be divided into 3 grades: 50,000RMB, 100,000RMB and 150,000RMB. ② Annual fee : the annual fee refers to the first grade, dividing into 30,000RMB and 60,000RMB. ③ Technical service fee : a certain proportion of sales value. (not includefreight ) |
2 |
Jingdong |
① Enterprises legally established for more than 1 year withregistered capital more than 500,000RMB. ② Trade mark license with brand state is R. ③ One shop cannot operate domestic and imported cosmetics at the same time. |
① Rate : 5%-6% of sales value. ② Annual fee of using the platform: 1000 RMB/year. ③ Security deposit : 30,000RMB or 60,000RMB. |
3 |
Vipshop |
Enterprises have at least one of following qualifications : ① Famous manufacturers. ②Authorized sole agent of a famous brand. ③ Sole distributor of a famous brand. ④ Branch company of a famous brand. ⑤ Affiliated agencyof a famous brand. ⑥ Chinese local office of a famous brand. |
Rate : around 30% of sales value. |
4 |
Amazon |
① The copy of business license ② The national tax registration certificate ③ Selling private brand commodity has to provide : Trade mark license or acceptance notice of trademark registration. ④ Agents or distributors have to provide : completed authorizing chain, authorization : the documents certify that you have the rights to sell the products of this brand. Trade mark license or acceptance notice of trademark registration. ⑤ Selling imported products has to provide the customs declaration issued by the Custom of People ’ s Republic of China |
① The fee under the independent distribution : 8% of sales value (including the price of commodity and distribution fee) ② The fee under the logistics of Amazon : 8% of sales value + Logistics fees + storage charge. |
5 |
The 1st shop |
The requirements for flagship stores : ① The copy of business bicense ② The tax registration certificate of cosmetic enterprises. National or local tax certificate are both acceptable. ③ Organization Code Certificate. ④ The copy of ID of legal representative (both sides). ⑤ The copy of ID of applicant (both sides). ⑥ Trade mark license or acceptance notice of trademark registration. |
① Security deposit : at least 20,000RMB; ② Annual fee of using the platform : 740 RMB /month; ③ Technical service fee: 6%sales value ④ Quality inspection fee : The qualification of stores in the 1st shop will be checked by third-party institutes. The fee will be 300RMB for the first brand and 50RMB for each one more brand. |
6 |
Suning |
① The copy of business license ② The copy of organization code certificate. ③ The copy of tax registration certificate. ④ The copy of ID of legal representative (both sides) ⑤ General taxpayer certificate. ⑥ Operators have to be the brand owner or to provide brand authorization certificate and representative authorization. ⑦ Having basic e-commerce operating team and completed after-sales service ability. ⑧ SOP mode company should have more than 100,000RMB registered capital, and SWL mode company should have more than 500,000RMB registered capital.
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① Security deposit : 10,000RMB; ② The use fee of YeePay: 0.6% for quick payment, 0.4% for others. ③ Consumer protection fund : 0.1%; ④ Commission : 3%-4%; ⑤ Annual fee of using the platform : 12,000RMB for SOP and 6,000 RMB for SWL.
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Through the comparison of these access requirements for cosmetics in famous Chinese On-line shopping centers, we found that they are quite similar in registration of enterprises and brand but different on cosmetic classified management which has not align with CFDA management system. The Shanghai local standard- the Management Standard of the Access Qualification of Enterprises in E-Commerce Platforms -has entered into force since 1 December 2014. This standard stipulated the details of the access and quit of enterprises, the changing or refunding, after-sales services, etc. It shows that the supervision for on-line sellers is becoming more and more normalized. CIRS team advises relevant enterprises to make preparation in advance.