Taobao and Tmall are two of the largest and most popular e-commerce platforms in China, both owned by Chinese giant Alibaba Group. Even though these platforms operate in the same ecosystem, they have several key differences that make them different business approaches. Understanding the differences between Taobao and Tmall is important for sellers as it helps you choose the right platform for your business. In this article, we look at the difference between these platforms, how they work and how to choose the right one for your business.
1. Platforms review: Taobao vs Tmall
1.1 Taobao
Taobao is China's largest online trading platform, targeting private sellers and small businesses. Almost everything can be found on the platform, from consumer goods to unique products from small businesses and individual sellers.
- User type: Taobao is focused on small businesses and individuals who sell goods directly to customers.
- Business model: The platform operates on a C2C (Consumer-to-Consumer) model, which means that any person or small business can become a seller.
- Features: Taobao has open access to all sellers without the need for complex certification. Sellers are free to set up stores, list items and start selling.
1.2 Tmall
Tmall is a more professional and brand-focused platform that serves larger, more official sellers. If Taobao is suitable for individual sellers, then Tmall is targeting companies and brands that want to run their business on a professional level.
- User type: Tmall is for companies and big brands that want to sell their products to Chinese consumers.
- Business model: Tmall operates on the B2C (Business-to-Consumer) model, where goods are sold directly to consumers through official brand stores.
- Features: To sell on Tmall, the company must pass strict certification that confirms its status as a brand or official distributor. This gives the platform a greater degree of trust among buyers.
2. Major differences between Taobao and Tmall
2.1 Vendor Type
- Taobao: Open to private sellers and small businesses. Sellers can be either individuals or small businesses that want to sell their goods directly to buyers.
- Tmall: Focused on big companies and brands that want to set up formal stores to sell their products. To become a seller on Tmall, you need to go through the certification process and provide evidence that your company is an official brand representative.
2.2 Target Audience
- Taobao: Attracts a wide audience of Chinese buyers, including those looking for products at affordable prices or unique products from small producers. The platform is ideal for customers who value diversity and affordability.
- Tmall: Focused on wealthier shoppers looking for well-known brand products and willing to pay for quality and official products. This allows the platform to attract a more upscale audience interested in premium products.
2.3 Registration Process and Certification
- Taobao: To register for Taobao, it is enough to go through the standard procedure, specifying personal data and business information. This process takes a little time and does not require the provision of many documents.
- Tmall: The registration process on Tmall is more complicated. Sellers need to be certified by providing documents that confirm their status as brand or company officials. This ensures that products on the platform are sold with a high level of trust and quality.
2.4 Customer Appeal
- Taobao: Taobao presents products of various types and categories, from low-price products to unique products, which attracts most of the audience. Often you can find good discounts and offers on the platform.
- Tmall: Tmall provides customers with confidence that the items they buy are original and high quality. This attracts customers who are looking for well-known brands and official products.
2.5 Fees and Costs
- Taobao: Taobao charges minimum fees to sellers. Sellers are not required to pay to use the platform, but can choose paid services such as advertising or promoting an item. This makes Taobao affordable for most small businesses.
- Tmall: Sellers on Tmall are required to pay the store's rent as well as various selling fees. Those costs could be higher than Taobao, as Tmall is focused on larger sellers with larger trading volumes.
3. What to choose: Taobao or Tmall?
3.1 When to choose Taobao?
If you're just starting a business and want to try online trading, Taobao is a great platform to start. It is suitable for small entrepreneurs, startups and individuals who want to sell goods without serious initial investments.
- Benefits for first-time sellers:
- Ease of registration and start-up process.
- Low cost of entering the platform.
- Wide audience and availability of various product categories.
3.2 When to choose Tmall?
If your business is already running a well-known brand or you want to sell premium products, Tmall is the top pick. The platform attracts a more solvent audience that is ready to pay for the quality and originality of products.
- Benefits for brands:
- Direct access to a high-end audience ready to pay for quality.
- The ability to create an official representation of your brand.
- More trust from customers through certification and brand status.
4. Conclusion
Taobao and Tmall are two platforms that serve different purposes. Taobao is the perfect choice for first-time sellers and those who want to sell at affordable prices, whereas Tmall is more suited to large companies and brands that want to enter the market with high-quality and official products. The choice between these platforms depends on your goals, business type and target audience.
1. Platforms review: Taobao vs Tmall
1.1 Taobao
Taobao is China's largest online trading platform, targeting private sellers and small businesses. Almost everything can be found on the platform, from consumer goods to unique products from small businesses and individual sellers.
- User type: Taobao is focused on small businesses and individuals who sell goods directly to customers.
- Business model: The platform operates on a C2C (Consumer-to-Consumer) model, which means that any person or small business can become a seller.
- Features: Taobao has open access to all sellers without the need for complex certification. Sellers are free to set up stores, list items and start selling.
1.2 Tmall
Tmall is a more professional and brand-focused platform that serves larger, more official sellers. If Taobao is suitable for individual sellers, then Tmall is targeting companies and brands that want to run their business on a professional level.
- User type: Tmall is for companies and big brands that want to sell their products to Chinese consumers.
- Business model: Tmall operates on the B2C (Business-to-Consumer) model, where goods are sold directly to consumers through official brand stores.
- Features: To sell on Tmall, the company must pass strict certification that confirms its status as a brand or official distributor. This gives the platform a greater degree of trust among buyers.
2. Major differences between Taobao and Tmall
2.1 Vendor Type
- Taobao: Open to private sellers and small businesses. Sellers can be either individuals or small businesses that want to sell their goods directly to buyers.
- Tmall: Focused on big companies and brands that want to set up formal stores to sell their products. To become a seller on Tmall, you need to go through the certification process and provide evidence that your company is an official brand representative.
2.2 Target Audience
- Taobao: Attracts a wide audience of Chinese buyers, including those looking for products at affordable prices or unique products from small producers. The platform is ideal for customers who value diversity and affordability.
- Tmall: Focused on wealthier shoppers looking for well-known brand products and willing to pay for quality and official products. This allows the platform to attract a more upscale audience interested in premium products.
2.3 Registration Process and Certification
- Taobao: To register for Taobao, it is enough to go through the standard procedure, specifying personal data and business information. This process takes a little time and does not require the provision of many documents.
- Tmall: The registration process on Tmall is more complicated. Sellers need to be certified by providing documents that confirm their status as brand or company officials. This ensures that products on the platform are sold with a high level of trust and quality.
2.4 Customer Appeal
- Taobao: Taobao presents products of various types and categories, from low-price products to unique products, which attracts most of the audience. Often you can find good discounts and offers on the platform.
- Tmall: Tmall provides customers with confidence that the items they buy are original and high quality. This attracts customers who are looking for well-known brands and official products.
2.5 Fees and Costs
- Taobao: Taobao charges minimum fees to sellers. Sellers are not required to pay to use the platform, but can choose paid services such as advertising or promoting an item. This makes Taobao affordable for most small businesses.
- Tmall: Sellers on Tmall are required to pay the store's rent as well as various selling fees. Those costs could be higher than Taobao, as Tmall is focused on larger sellers with larger trading volumes.
3. What to choose: Taobao or Tmall?
3.1 When to choose Taobao?
If you're just starting a business and want to try online trading, Taobao is a great platform to start. It is suitable for small entrepreneurs, startups and individuals who want to sell goods without serious initial investments.
- Benefits for first-time sellers:
- Ease of registration and start-up process.
- Low cost of entering the platform.
- Wide audience and availability of various product categories.
3.2 When to choose Tmall?
If your business is already running a well-known brand or you want to sell premium products, Tmall is the top pick. The platform attracts a more solvent audience that is ready to pay for the quality and originality of products.
- Benefits for brands:
- Direct access to a high-end audience ready to pay for quality.
- The ability to create an official representation of your brand.
- More trust from customers through certification and brand status.
4. Conclusion
Taobao and Tmall are two platforms that serve different purposes. Taobao is the perfect choice for first-time sellers and those who want to sell at affordable prices, whereas Tmall is more suited to large companies and brands that want to enter the market with high-quality and official products. The choice between these platforms depends on your goals, business type and target audience.