Yiwugou Pushes for Business License Displaying, 50% of Businesses Online Expected to Comply by the End of August

News provided by

Jun 28, 2016, 11:00 ET

YIWU, China, June 28, 2016 /PRNewswire/ -- Yiwugou.com (the official website of the Yiwu Commodity Market, which is the largest commodity wholesale market in the world) has announced its cooperation with the Yiwu government's regulatory bodies to push businesses on the website to display their business licenses. Around 50% of businesses using this platform are expected to comply by the end of August. Each business on Yiwugou.com is required to disclose the information in its business license or provide a link to its business license in a noticeable position on its main page. This is intended to regulate operation activities more effectively in accordance with China's laws and regulations.

In March last year, Yiwugou worked with the Yiwu government's regulatory bodies to roll out the online business license for the platform. Each such license is tied to a store account on Yiwugou and issued to the business as a permit for operation proving that the business is certified by the government's regulatory bodies. Up to now, nearly 10 thousand such licenses have been issued. A growing number of businesses are applying for real-name authentication based on the business license.

The certification and supervision of e-commerce businesses have been virtually a vacuum in China. Mainstream e-commerce platforms have relied on corporate certification. However, when a transaction dispute arises on a platform, the platform, which is actually a company, cannot do a good job regulating business behavior by invoking laws and regulations. As a move to tackle this problem, the Yiwu government's regulatory bodies had released the Guidelines on the Registration of E-comerce Businesses on Yiwugou before Yiwugou came up with the online business license in March last year. This document specifies which businesses the online business license for Yiwugou applies to and what scope it covers. It also provides details on restrictions and the procedure for registration.

Insiders say the online business license for Yiwugou boosts the credibility of businesses on the platform, incorporates the certification and supervision of these businesses into the state regulatory system, and standardizes this whole process. All this could take Yiwugou's credibility system to a higher level.

According to staff of Yiwugou, business license displaying has become a key condition for businesses to take part in activities organized by Yiwugou. For example, only businesses that comply are eligible to participate in the Ten Vendors of the Year.

About Yiwugou.com

Logo - http://photos.prnewswire.com/prnh/20141215/164355LOGO

SOURCE Yiwugou