Requiring sellers to join the platform means the platform must verify identities, register data, report information, and retain records for three years

5. Requiring sellers to join the platform means the platform must verify identities, register data, report information, and retain records for three years

Cost: No direct monetary cost. However, the platform must perform background checks on sellers’ qualifications and maintain a registration database. Tax-related information must be reported quarterly, while transaction data must be kept for at least three years. The main challenge is that this is an ongoing obligation rather than a one-time task.

In plain terms: If you allow third parties to sell goods on your platform, you must first verify their identity, address, contact details, and business licenses, then add them to your registration records. After setting up these records, you must re-verify seller information at least every six months. You must also report seller details to market regulators and submit tax-related data quarterly. All product and transaction records must be retained for three years. Failure to comply with any of these requirements results in a mandatory rectification order; if ignored, fines ranging from 20,000 to 100,000 yuan apply.

Benefit: Legal regulations set specific obligations for platforms. The official wording states that platforms must require sellers to provide authentic identity, address, contact, and licensing information, then verify and register this data while maintaining updated records. This means sellers must submit their basic details and required permits before joining, which you must then confirm and log into a database. Periodic re-verification is also mandatory. The exact interval for re-verification is defined as “at least every six months” under relevant administrative rules. Additionally, you must submit seller identity data to market regulators and tax authorities, as required by tax administration laws. All product, service, and transaction data must be retained for no less than three years from the date each transaction concludes. Non-compliance triggers a rectification order; persistent violations incur fines of 20,000–100,000 yuan, while severe cases may lead to temporary suspension of operations and fines of 100,000–500,000 yuan. Tax reports must be submitted within the month following each quarter’s end, with identical penalties for late submissions nationwide.

Evidence grade: A

Notes: Sellers themselves must also register as market entities. Certain exceptions apply: individuals selling self-produced agricultural or handmade goods, or providing small-scale services that do not require permits, are exempt. The threshold for “small-scale” activities is set at an annual transaction volume of 100,000 yuan under current online trade regulations. Platforms also bear two additional responsibilities: clearly marking registered versus unregistered sellers, and prohibiting the removal of consumer reviews.

Sources: Standing Committee of the National People's Congress (2018). E-commerce Law (Articles 10, 27, 28, 31, 80). <https://flk.npc.gov.cn/detail?id=2c909fdd678bf17901678bf8af050b81>; State Administration for Market Regulation of China (2021). State Administration for Market Regulation Regulation of China Order No. 37, Articles 8, 24, 25, 31). <https://www.gov.cn/gongbao/content/2021/content_5602020.htm>; State Council of China (2025). Regulations on the submission of tax-related information for Internet platform companies (State Council of China Order No. 810, Articles 2, 3, 4, 10). <https://www.gov.cn/gongbao/2025/issue_12146/202507/content_7030983.html>; State Taxation Administration of China (2025). Announcement on matters related to the submission of tax-related information by Internet platform companies (State Administration of Taxation Announcement No. 15 of 2025). <https://www.gov.cn/zhengce/zhengceku/202506/content_7029727.htm>