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U.S. buyers account for half the sales on Hong Kong-based wholesale site DHgate.com

June 22, 2015 03:11 PM
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DHgate, a Chinese e-marketplace company that offers 25 million consumer products at wholesale prices from 1.2 million suppliers, relies on buyers from the United States for more than half of its business.  

But as DHgate has extended its sales to more countries over the past decade, the share of sales to U.S. buyers has shrunk to 51% from more than three-quarters in 2005, the company says in a recently released report titled “10 year Cross-border E-Commerce Industry.”

The United States accounted for nearly 80% of the value of merchandise purchased on DHgate.com in its first full year of operation in 2005, with the United Kingdom representing 11% and Canada 6%, the report says.  Ten years later, the share of sales from U.S. buyers has dropped to 51% of DHgate.com’s gross merchandise volume, the report found. Customers from the U.K., meanwhile, inched up to 11.2%, while Canadians’ share of sales dipped to 4.86%.

Over the course of the decade from early 2005 to the end of 2014, the total number of order transactions broken down by region include:

● U.S., 44%;

● United Kingdom, 14%;

● Australia, 7%

● Canada, 6%

● France, 3%

● Spain, 2%

● Brazil, 2%

● Netherlands, 2%;

● Sweden 2%

● Germany, 1%

  • Other, 17%

100,000 unique visitors browse the site every hour, the company says.   

The e-marketplace company charges sellers a commission for successful transactions. Commissions vary by product category, but sellers generally pay 4.5% on sales of $300 or more and 8% to 12% on sales of under $300, according to chief operating officer Noah Herschman. For merchants opening a new shop, DHgate charges a service fee for account services and marketing. For foreign buyers, DHgate also provides such services as logistics, financial services, and storage, customs clearance, tax refund and goods inspection programs for an additional fee.

DHgate has also launched a separate e-marketplace at DHport.com, where manufacturers sell directly to other businesses; that site is in a beta test period. The company also operates DHLink.com, which provides logistics services. DHgate did not immediately return a request for information about traffic and sales on those two sites.

Sign up for a free subscription to B2BecNews, a weekly newsletter that covers technology and business trends in the growing B2B e-commerce industry. B2BecNews is published by Vertical Web Media LLC, which also publishes the monthly business magazine Internet Retailer. Follow Nona Tepper, associate editor for B2B e-commerce, on Twitter @ntepper90.

 

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