{"id":9958,"date":"2025-01-20T07:28:44","date_gmt":"2025-01-20T06:28:44","guid":{"rendered":"https:\/\/eurotext.de\/en\/?p=9958"},"modified":"2025-01-30T11:54:19","modified_gmt":"2025-01-30T10:54:19","slug":"e-commerce-in-taiwan","status":"publish","type":"post","link":"https:\/\/eurotext.de\/en\/blog\/e-commerce-in-taiwan\/","title":{"rendered":"E-Commerce in Taiwan"},"content":{"rendered":"

For European businesses looking to expand their online sales, Taiwan is an exciting new target market. As a highly developed industrial nation with a thriving democracy, Taiwan is often compared to Japan or South Korea. However, its unique geopolitical status adds an extra layer of complexity. In this article, we\u2019ll explore why this is the case, highlight the key features of Taiwan\u2019s e-commerce<\/a> landscape, and outline what businesses need to keep in mind when entering this promising market.<\/p>\n

Quick Facts About Taiwan<\/h2>\n

Taiwan<\/b>, which is officially called the Republic of China<\/b>, is an island nation in East Asia, consisting of the main island of Taiwan and several smaller ones. The country has a total of over 23 million residents, with about 4 million living in the bustling metropolitan area of Taipei<\/b>, the capital in the north. Taiwan spans 35,800 square kilometers and sits in the Western Pacific, about 130 kilometers off the coast of mainland China.<\/p>\n

Taiwan is a democratic, semi-presidential republic that experienced rapid economic growth and gradual democratization from the mid-20th century onwards. Today, alongside Japan<\/a> and South Korea<\/a>, it\u2019s one of the most democratic countries in East Asia<\/b>. However, Taiwan\u2019s political status is contentious: China views Taiwan as a \u201cbreakaway province,\u201d while Taiwan maintains it is a sovereign state. This long-standing disagreement, known as the Taiwan conflict<\/b>, has persisted since the end of World War II.<\/p>\n

Few countries officially recognize Taiwan due to China’s “One China Policy,” which requires nations to choose between formal relations with China or Taiwan. This led to Taiwan losing its United Nations membership in 1971 under Resolution 2758.<\/p>\n

Despite this, Taiwan ranks high in global development metrics. With a Human Development Index (HDI) of 0.926 as of 2021, it stands 21st in the world (Germany: 0.950; United States: 0.927). Taiwan\u2019s GDP was nearly USD$756 billion in 2023 with a GDP per capita of USD$32,610. In 2023, a Statista survey showed that the average disposable income in Taiwan was about \u20ac12,000 per person.<\/p>\n

Taiwan uses the Taiwan New Dollar (TWD), which is divided into 100 Jiao. As of January 2025, 1 Euro equals 33.90 TWD. Taiwan follows China Standard Time (CST) year-round, with no daylight savings. This means Taiwan is 7 hours ahead of central Europe.<\/p>\n

Language and Localization<\/h2>\n

Taiwan\u2019s official language is Taiwanese Mandarin Chinese<\/b>, which varies little from standard Mandarin Chinese. However, other recognized national languages are widely spoken. These include Taiwanese Hokkien<\/b>, which is derived from Min Chinese and is spoken by about 70% of the population, and Hakka<\/b> which is spoken by about 7% of the population. In addition, there are 16 indigenous Formosan languages<\/b> spoken by a small minority of the population.<\/p>\n

A crucial note for localization: Taiwan uses traditional Chinese characters<\/b>, unlike mainland China, which adopted simplified characters. For businesses entering the Taiwanese market, adapting your content to traditional characters and local culture is essential.<\/p>\n

English<\/b> is the most common foreign language in Taiwan. About 25% of the population speaks some level of English, particularly in urban areas like Taipei. Still, translating<\/a> your materials into Mandarin is critical if you want your message to resonate with the local audience. Tailored, culturally sensitive localization is key to success, particularly in e-commerce, where even minor details like currency and tone matter.<\/p>\n

Economy and Trade<\/h2>\n

Taiwan’s economy is driven by services (62%) and manufacturing (36%), with agriculture accounting for just 2%. Taiwan is a global leader in electronics production, particularly semiconductors, but also exports machinery, chemicals, metals, and plastics.<\/p>\n

In 2023, Taiwan exported goods worth US$432 billion while importing US$351.9 billion, primarily electronic machinery, mineral fuels, and chemicals. Most imports come from China (22%), Japan (16%), South Korea (13%) and the U.S<\/a>. (12%). European countries such as Belgium, Germany<\/a> and Austria<\/a> are also trading partners.<\/p>\n

Trends in Internet Usage<\/h2>\n

According to a 2023 study, Taiwan boasts an internet penetration rate of about 91%<\/b>, with 21.7 million active users. In another survey, 38% of respondents indicated that they went online several times a day, while only 6% said they went online once per day or less.This makes it a lucrative market for e-commerce businesses. Internet usage is evenly distributed between genders, though women are more active on social media platforms like Facebook and Instagram.<\/p>\n

Taiwan has one of the highest social media penetration rates in the region<\/b>, with about 19 million users in 2024. As in much of the world, Facebook is more popular among adults, while Instagram attracts younger users. By far the most lucrative and popular social media app in Taiwan is the LINE app<\/b>, which offers calls, chatting, group chat, collaboration, payments and more. It also offers advertising opportunities and includes a built-in e-commerce platform, which makes it an obvious choice for e-commerce merchants who want to expand to the region.<\/p>\n

Smartphones <\/b>are huge in Taiwanese e-commerce, with 70% of Taiwanese online shoppers <\/b>reporting that they use their mobile phones to make purchases. That means that it\u2019s crucial to optimize your website for mobile platforms.<\/p>\n

E-Commerce Insights<\/h2>\n

Taiwan\u2019s e-commerce market g<\/b>enerated over NT$6.81 trillion (\u20ac200 billion) in 2022, including both B2C and B2B sales. Electronics and food\/beverage industries lead in revenue<\/b>, followed by personal care and hygiene products, which saw a significant boost during the COVID-19 pandemic.<\/p>\n

Adults aged 45\u201354 are the most active online shoppers<\/b> (39%), followed by younger adults under 44 (30%) and those over 55 (31%). Overall, 51% of Taiwanese consumers shop online regularly\u2014just below the global average of 58%.<\/p>\n

The preferred payment methods for online shoppers are mobile payment, credit and debit cards, and other payment cards<\/b>. Taiwanese shoppers used cards of all kinds in 53.6% of all online transactions, and credit and debit cards for 47.3% or purchases and digital payments<\/b> in 44% of purchases. Digital wallets like LINEPay, Apple Pay, and Google Pay<\/b> were used for about 26.7% of transactions. Their popularity is growing, but they less prevalent in Taiwan than in South Korea or Japan.<\/p>\n

93% of consumers who made online purchases in 2022 shop on e-commerce marketplaces, followed by retailer\/brand websites (39%) and shopping apps (34%). Popular marketplaces include Shopee Taiwan<\/b>, Momo Shopping<\/b>, and eWorldTrade<\/b>, with Momo specializing in cosmetics and household goods. Note that most local platforms are only available in Mandarin.<\/p>\n

Import and Customs Considerations<\/h2>\n

Taiwan uses the Harmonized System<\/b> for tariffs, making its customs processes similar to Europe\u2019s. Imports fall into four categories: Prohibited, Controlled, Permitted, and Temporarily Suspended. Over 8,000 items are freely importable without a license. However, restrictions exist on EU agricultural products and certain sensitive goods like automobiles.<\/p>\n

Detailed labeling and packaging can simplify customs clearance, especially for items like beverages, textiles, and pharmaceuticals. For some products, such as vehicles and agricultural goods, a certificate of origin may be required.<\/p>\n

Conclusion<\/h2>\n

For European businesses, Taiwan offers an exciting opportunity for digital expansion. With its advanced infrastructure, tech-savvy population, and vibrant democracy, Taiwan is often compared to Japan or South Korea. However, the country\u2019s unique geopolitical situation does make things a bit more complicated.<\/p>\n

However, while Taiwan\u2019s diplomatic status remains complex, this doesn\u2019t detract from its potential as an e-commerce market. Success lies in understanding the local language, culture, and consumer habits. By tailoring your approach to Taiwan\u2019s unique landscape, your business can thrive in this dynamic and growing market.<\/p>\n
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Sources<\/h2>\n