Good to know about Tmall
- Official brand stores: Genuine products and fewer returns, but higher prices.
- Shipping: Delivery within China is often free; most sellers use a forwarder to Korea.
- Reselling brands: Check for trademark issues before reselling branded goods.
How it is calculated
- Cost per item = (item price + local shipping) × exchange rate + agent fee + international shipping + extras + duty and VAT, divided by quantity
- Buying agent: duty-free if the item value (with local shipping) is 150 USD or less; above that, duty and 10% VAT on (items + international shipping)
- Stock import: duty and 10% import VAT regardless of value. General taxpayers recover the import VAT, so it is left out of cost
- Net profit = price in Korea − marketplace fee − cost per item − domestic courier − VAT
The 150 USD limit is the current rule. The government is reviewing the small-import exemption, so check Korea Customs notices. VAT for buying-agent businesses depends on how you file; check with a tax accountant.
Frequently asked questions
Are Tmall and Taobao the same company?
Both are Alibaba Group services. Tmall focuses on business and brand stores; Taobao is a marketplace with many individual sellers.
Does the 150 USD duty-free limit apply to Tmall?
For agent purchases cleared in the customer’s name, orders up to 150 USD are usually duty-free. Stock imports are taxed regardless.