(Source: https://pltfrm.com.cn)
Introduction
In 2025, Xiaohongshu’s cross-border e-commerce model offers overseas brands an affordable entry to China’s premium market, with fees structured to reward high-engagement sellers through rebates and low barriers. Understanding these costs—from deposits to commissions—ensures profitability while capitalizing on the platform’s 300 million users who prioritize authentic imports. This breakdown delivers actionable insights to budget effectively and optimize returns from day one.
1. Initial Setup and Registration Fees
1.1 Account Verification Charge A one-time enterprise account upgrade fee of 500-1,000 RMB covers basic verification and blue-V badge assignment for overseas entities. This modest cost grants immediate access to content tools and analytics, essential for pre-launch note seeding. Waive it by entering via certified partners like PLTFRM for streamlined processing.
1.2 Document Processing Expenses Translation and notarization for trademarks and business licenses run 2,000-5,000 RMB, depending on volume, but Xiaohongshu waives full legalization for cross-border applicants in 2025. Factor in proxy mobile setup (200 RMB) for app access. These upfront investments yield quick ROI through organic discovery.
2. Security Deposits and Refunds
2.1 Category-Based Deposit Tiers Deposits range from 20,000 RMB for low-risk apparel to 50,000 RMB for health supplements, serving as compliance guarantees and fully refundable upon exit or after 12 months of flawless operations. Beauty brands often start at 25,000 RMB, with performance thresholds unlocking partial returns quarterly.
2.2 Refund Optimization Strategies Maintain 4.8+ store ratings and <5% return rates to accelerate refunds, using Xiaohongshu’s dashboard for real-time compliance tracking. Top performers in 2025 receive 20-50% rebates tied to GMV milestones, turning deposits into growth capital.
3. Commission and Transaction Costs
3.1 Sales Commission Rates Platform commissions vary from 2% for fashion to 5% for electronics, deducted per transaction and lower than competitors for high-volume overseas sellers. Bundle with promotions to offset, as 2025 updates favor dynamic pricing for cross-border listings.
3.2 Payment Gateway Fees Alipay and WeChat Pay integrations add 0.6-1% per order, with international cards via Alipay Global at 2-3% for overseas remittances. Monitor via Qianfan system to bundle fees into pricing, ensuring transparency for Chinese buyers.
4. Ongoing Operational Expenses
4.1 Marketing and Promotion Add-Ons Optional traffic boosts start at 5,000 RMB per campaign, but organic notes drive 70% of visibility—allocate 10-15% of budget here for KOL collabs. 2025’s algorithm prioritizes authentic UGC, minimizing paid needs for engaged brands.
4.2 Logistics and Fulfillment Charges Bonded warehouse partnerships cost 3-6% of order value, with direct overseas shipping at 8-12% including duties. Use Xiaohongshu’s REDelivery for subsidized rates, scaling with volume to cut costs by 25% in peak seasons.
Case Study: Verde Essentials’ Cost-Efficient Launch
U.S. sustainable home goods brand Verde Essentials managed Xiaohongshu fees under 80,000 RMB initial outlay in mid-2025, starting with a 25,000 RMB deposit and 3% commissions on lifestyle products. By hitting 4 million RMB GMV via UGC campaigns, they secured a 40% deposit rebate and expanded to livestreams, boosting margins by 18%.
Conclusion
Strategic fee management on Xiaohongshu in 2025 transforms costs into investments for overseas brands eyeing sustainable China growth. Leveraging our 10+ years in localization, PLTFRM audits your budget for optimal setup. Eager to minimize expenses? Schedule a free fee simulation and rebate strategy call today.
PLTFRM is an international brand consulting agency that works with companies such as Red, TikTok, Tmall, Baidu, and other well-known Chinese internet e-commerce platforms. We have been working with Chile Cherries for many years, reaching Chinese consumers in depth through different platforms and realizing that Chile Cherries’ exports in China account for 97% of the total exports in Asia. Contact us, and we will help you find the best China e-commerce platform for you. Search PLTFRM for a free consultation! info@pltfrm.cn
