Lau is struggling with communicating with Taobao’s  robotic customer service again to prove that she had never received a lost parcel – which is a common situation encountered by many cross-border online shoppers in the after sales process.

Under the technological era, the development of cross-border e-commerce has created a global platform for businesses to break through geographical restrictions and efficiently expand into overseas markets. 

Taobao, a prominent Chinese e-commerce platform under Alibaba, announced its market expansion to Hong Kong in 2024 by introducing a free shipping service to the city. The other two major mainland e-commerce giants, Pinduoduo and JD.com, have also quickly followed suit by introducing free shipping to Hong Kong services to seize the Hong Kong market.

For example, since the expansion of its free shipping service in Hong Kong last October, Taobao Hong Kong has seen double-digit year-on-year growth in both gross merchandise volume (GMV) and order numbers.

Taobao users now make up half of Hong Kong’s total population, said Ye Jianqiu, general manager of Tmall Taobao World, a unit of Alibaba’s International Digital Commerce Group, while the number of new users has more than doubled compared to the same period last year.

Zhuang Shuai, the founder and chief analyst at e-commerce consultancy Bailian said, “Listing on Hong Kong’s e-commerce platforms can help their brands boost their popularity among Hong Kong and foreigner.”

From the customer’s perspective, the free shipping allows them to conveniently purchase items at a low price from mainland e-commerce platforms when staying in Hong Kong.

Although they can enjoy the lower price to purchase different items, their consumer rights have not been guaranteed. According to the Consumer Council, they received 1,088 cases related to cross-border online shopping in 2024 (including Hong Kong consumers shopped with non-local online platforms, and overseas consumers shopped with Hong Kong online shops): 

These complaints highlight systemic challenges, such as inconsistent logistics, misleading product descriptions, and inadequate dispute resolution mechanisms. 

In light of this growing trend, this report examines the implications of mainland e-commerce’s rapid expansion into Hong Kong, focusing on its impact on local businesses, consumer protection, and the broader retail landscape. 

According to the report by the Census and Statistics Department of HKSAR, the total value of online retail sales in 2024 reached HKD 31.6 billion, accounting for 8.4% of total retail sales. As the e-commerce giants Taobao and JD.com announced to invest more than 1 billion to increase their market share in Hong Kong, the local retail industry may find itself challenged by mainland competitors.

By evaluating regulatory gaps and potential solutions, the reports will provide actionable insights for shoppers navigating this evolving landscape.

Since Chinese e-commerce platforms provide better cross-border shipping service, it attracts more and more Hongkongers to shop there.

According to our survey, over 95% of people have used the “Free Shipping to Hong Kong” option. Nearly 90% said it was one of the main reasons they chose to shop on mainland platforms.

“Many products don’t state clearly if they include shipping to Hong Kong or if there’s a minimum order,” Samuel Sun Liang, a 27-year-old student said.

“By the time you figure it out, you could’ve already bought it on Pinduoduo, which clearly shows ‘Free Shipping to Hong Kong’.”

Sun said JD.com gives the best service.“The delivery is fast. Couriers call you in advance and even take a photo if they leave the package at your door,” he said.

In our survey, over 80% of JD.com users agreed, saying they liked its fast delivery, easy-to-use app, and helpful return service.

However, JD.com is more expensive and has fewer products than PDD.“I don’t use it often now,” Sun said. “But if I’m buying something big, like a mattress, I’ll still choose JD.com.”

Pinduoduo is his first choice now.“They sell everything — even fruit. It’s cheaper, there’s no delivery or minimum order fee, and shipping usually takes about five days. That’s acceptable compared to Hong Kong prices,” he said.

Over half of PDD users in our survey said they were happy with it. They liked the low prices (44%) and easy shopping experience (24%). But 5.62% had problems like slow delivery or unclear tracking.

Sun only uses Taobao when he can’t find something on PDD or JD.com. “Sometimes Taobao has it, but you often need to pay shipping. It doesn’t have many snacks either,” he said.

More than 55% of Taobao users reported satisfaction with its free shipping service from our survey result. However, others raised concerns about hidden charges and slower delivery times compared to private shipping agents.

So how can you avoid these pitfalls? Want to shop smart? Follow these steps to compare the three platforms and make better choices.

Some items are restricted or banned for cross-border delivery. If you buy these, the warehouse may reject them, and the courier will return the parcel to the seller. Check out the table of commonly misunderstood items to avoid costly mistakes:

After reading this guide, you’re ready to shop like a pro on Chinese e-commerce platforms!

The convenience of free shipping from Mainland platforms comes with trade-offs especially when it comes to delivery logistics. 

After making purchases on Taobao, Joyce Lee Wing-yin, a 26-year-old accountant said: 

Her experience shows a common complaint among Hong Kong consumers: limited control over delivery timing and crowding at self-pickup points.

While consumers voice concerns, the self-pickup point operators at the center of the logistics chain are under their own strain. As Taobao, Pinduoduo and JD.com expanded their markets to Hong Kong by free shipping, the local self-pickup point owners have faced new challenges from the mainland e-commerce giants.

The owner of E memory collection, Matthew T., is cooperating with one private shipping company currently. Their business has decreased by 50 per cent since Pinduoduo expansion to Hong Kong.

“For many people, they can buy at a lower price on these platforms, but it is like a sugar-coated poison for the Hong Kong economy,” said Matthew. “Many small businesses have thus closed down.”

He mentioned that business has slightly improved this month because there are fewer 99 free shipping products on Taobao.

“Each package can only earn a small commission,” said Matthew, adding that more employees and space is needed in order to accommodate more packages. “One employee needs to handle up to 300 to 400 items.”

On the contrary, Hannah, another self-pickup point owner who is contemplating a collaboration with Cainiao said: “It’s a good thing to have multiple e-commerce platforms entering Hong Kong instead of a monopoly,” she said. “If the commission is too low, you can always consider partnering with a different platform.” 

Hannah is not the only one struggling in the industry, but also Nick Yeung who operates a self-pickup point that works with multiple platforms. 

According to the interviews with different self-pickup points’ owners, many of them mentioned large e-commerce platforms stipulate that self-pickup points cannot cooperate with both Cainiao and Pinduoduo at the same time in order to compete with their rivals, which leads to the self-pickup point owners having to choose between the two.

For Hong Kong consumers, mainland e-commerce platforms like Taobao, Pinduoduo, and JD.com are hard to resist, while discounted goods and free shipping straight to doorstep make cross-border shopping more attractive.

But behind the promotions lies a more complicated reality such as hidden fees, delayed deliveries and a lack of accountability when things go wrong.

Our survey found that some have faced unexpected charges or long waits for their orders to arrive. The real problem is nearly impossible to seek help when something goes wrong.

Much of the confusion starts with misleading promotions. Take Taobao’s “Free Delivery on Orders Over RMB99” campaign as an example. It sounds simple until the consumers get to the checkout.

Some items are eligible for free shipping, but others aren’t. Consumers are often forced to choose between paying 10 yuan (depending on the weight of the products) or selecting consolidated shipping, where the final cost isn’t revealed until the package reaches the warehouse.

This lack of transparency raises concerns about compliance with Hong Kong’s Trade Descriptions Ordinance, which prohibits false or misleading claims. While Hong Kong Customs says that sellers operating locally could be held accountable, enforcement remains weak.

Even though Section 21(A) of the Ordinance allows Hong Kong-based traders to be penalized for unfair practices—even when targeting consumers outside Hong Kong—mainland platforms like Taobao fall outside these legal boundaries. Transactions happen across the border, meaning Hong Kong buyers are left with little to no protection if sellers disappear, deliveries fail, or fees suddenly increase.

The Consumer Council advises shoppers to resolve disputes directly with sellers or logistics providers, but that often leads nowhere – as experienced by one of our aforementioned interviewees, Lau Lok Hung. In such situations, the platform, self-pickup point or seller might shift blame onto each other in order to avoid losses, especially when Lau lacked evidence to prove non-receipt of the package.

To fix this, the Consumer Council suggests that platforms take responsibility for clearly listing all key information—including shipping policies, terms, and any limitations. Free shipping offers should be explained in plain language, with clear conditions stated upfront on product pages, while shipping fees should also be itemized at checkout.

“The trend of cross-border online shopping in Hong Kong is sure to continue, just as they have been operating in the mainland for over 20 years, ” Zhuang said. 

To tackle the influence brought by the e-commerce platforms, Zhuang suggested the retail industry should “localize the service” and “differentiate the products”.

“Categories like baking, cooked food, and fresh produce are all difficult for e-commerce to provide higher quality,” Zhuang added. “For example, offering services such as food tastings, personalized tailoring services can help address competition in e-commerce.”

In the long run, Zhuang believed that the expansion of mainland e-commerce platforms to Hong Kong is good for Hong Kong.