When it comes to e-commerce in Africa, many people’s first reaction is that it’s “backward,” “lacks logistics,” and “no one buys anything.” But if I told you that South Africa’s online retail market is projected to exceed R130 billion (approximately 52 billion RMB) by 2025, with an annual growth rate of 35%–38%, would you still consider this a market that can be ignored?

To get to the bottom of these issues, our Qicaiying team traveled to South Africa to conduct on-site research. We have since established a branch office there and set up an overseas warehouse. In today’s article, we’ll let the data speak for itself—covering market size, growth rate, penetration rate, user profiles, and the competitive landscape—to help you gain a clear, comprehensive picture of the South African e-commerce market.

As an individual Taobao seller, what kind of phone call do you dread the most?

It wasn't a negative review or a complaint, nor was it a return dispute—it was a verification call from the tax office:

“Hello, I’m calling from the XX Tax Bureau. There are discrepancies between your platform’s business data and your historical tax filings, so we need to come by to verify the information and file an amended return.”

When the vast majority of small business owners receive this call, their first reaction is usually one of panic and confusion: they can’t tell if it’s real or fake, don’t know how long the audit will last, aren’t sure how much back taxes they’ll have to pay, fear hefty fines, and worry that their business will be shut down immediately.

For a long time, many individual Taobao store owners have assumed that “small online stores don’t need to file taxes.” They’ve operated comfortably by filing zero-income tax returns, keeping no accounting records, and having no tax payment history—all while relying on information asymmetries. However, with the full digitization of e-commerce tax regulation, the era of relying on such luck has come to a complete end.

In this issue, we share a real-life, anonymized case study of corrective actions taken by an individual Taobao women’s clothing store in the Pearl River Delta. We break down the entire process—from being summoned by tax authorities to addressing data anomalies and filing compliance-related supplementary reports—to help all individual e-commerce store owners avoid common pitfalls.

Many individual TikTok creators have a deeply ingrained misconception:

“The platform has already deducted the service fee and taken its cut from the withdrawals, and the MCN has helped with the settlement, so the taxes have definitely already been paid—I don’t need to worry about it myself.”

Commissions from product sales, viewer tips, brand promotion fees, payments from private-domain transactions… For every payment received, streamers assume that taxes have already been paid and that no further tax filing is required.

However, over the past two years, a large number of individual streamers have been receiving tax audit notices, risk alerts, and reminders to conduct self-assessments and pay back taxes. There is only one core reason for this: platform deductions ≠ tax payment, and agency settlements ≠ tax filing.

In this issue, we share a real-life, anonymized client case: An individual live-streamer selling general apparel triggered a big data alert due to misconceptions about income and non-compliant tax filing, resulting in a notice to appear for a tax interview. Ultimately, by reviewing each item in detail and implementing compliance corrections, the client was able to eliminate all risks.

Nine out of ten sellers who run their own online stores have had this kind of wishful thinking:

“Register a company in Hong Kong; funds are transferred via PayPal and AirPay, bypassing mainland China accounts, so no taxes are owed.”

“Our Hong Kong company has always filed zero-revenue returns; no one audits us, so we save wherever we can.”

“The offshore exemption process is too complicated; it’s not worth the hassle.”

Many small and medium-sized independent online store sellers operate using this “extensive approach,” unaware that tax risks have long been quietly accumulating.

In this issue, we share a real-life, anonymized client case study: A seller’s Hong Kong company had been filing zero tax returns for an extended period, had genuine transaction records in its overseas accounts, and operated a mainland China company in parallel. Starting from a high-risk, non-compliant status, the client successfully eliminated risks at low cost and legally saved a significant amount in taxes through a combination of the Hong Kong offshore exemption and a phased compliance approach in mainland China.

If you also own a Hong Kong company, operate an independent e-commerce site or engage in cross-border e-commerce, have consistently filed zero tax returns but have actual business transactions, and are unsure about your risks and compliance options, you can receive a free consultation and assessment.

A new round of U.S. tariffs targeting 60 trading partners officially took effect at 12:01 a.m. on July 24, Eastern Time.

These tariffs, imposed under Section 301 of the Trade Act of 1974 on the grounds of so-called “forced labor,” range from 10% to 12.5%, seamlessly replacing the provisional tariffs that had previously expired, covering 99.4% of U.S. trade volume. Mainland China and Hong Kong, China are both classified under the highest tariff bracket of 12.5%.

Many sellers mistakenly believe this is merely a minor adjustment—from “10% to 12.5%”—but in reality, they have completely underestimated the impact of this round of policies: the new tariffs are cumulative, regulatory oversight has been comprehensively strengthened, and all tax avoidance loopholes have been closed.

This article won’t delve into a lengthy explanation of the policy; instead, it will help cross-border sellers get to the heart of the matter: Now that the new tariffs have taken effect, which category of affected sellers do you fall into, how much profit will you lose, and what steps can you take right now to comply with regulations and protect your business.