Kazakhstani sellers fear that the growing presence of Chinese platforms such as Pinduoduo could hurt their businesses. Those most at risk are merchants who import inexpensive goods from China and resell them at a markup.
In late September, news emerged that Chinese e-commerce giant Pinduoduo planned to launch a project in Kazakhstan. Although the details remain unclear, the plans include a proposed transport and logistics hub, Almaty SkyHub, designed to facilitate shipments from China to the European Union, the Eurasian Economic Union (EEU) and Central Asia. Following the announcement, many Kazakhstani entrepreneurs voiced concerns about intensifying competition.
Kursiv.media spoke with representatives of online sellers’ associations to find out which businesses have the most to fear from Chinese marketplaces and what the government and entrepreneurs themselves can do to protect local businesses.
Ordering goods from China will become easier
Artem Bukhonin, a marketplace expert and founder of the Sellers.kz community, said a logistics hub would primarily serve transit and export operations rather than deliver individual parcels directly to Kazakhstani consumers. Nevertheless, if Chinese goods become more accessible and ordering them more convenient, local sellers will face greater challenges.
Read also: Local shops vs. China’s Temu: Kazakh retail sector fights for survival.
«If buyers can order the same products directly to their homes, sellers who simply transport Chinese goods and make a profit on the markup — essentially charging customers for delivery — will struggle. A markup alone is no longer enough to retain customers. Sellers who offer immediate availability, warranties, exchanges and personalized advice will be in a much stronger position,» Bukhonin said.
«I would advise every seller to review their product range now and answer honestly: Which items do customers buy because they need them immediately, and which are they willing to wait three weeks to receive from China?»
Khamit Kashikov, head of the Ecommerce-Kz association, also stressed that little is known about Pinduoduo’s specific plans for Kazakhstan. However, the platform has already held consultations with the State Revenue Committee on taxation and data exchange. If a transport hub is established in Almaty, consumers could benefit, he said.
«Delivery times will shorten, shipping will become more predictable, returns will be easier, and customers will no longer need to rely on third-party cargo intermediaries. The country would benefit, too, through additional tax revenue and new jobs. Kazakhstan could also become a transit point for shipments to Russia, Kyrgyzstan and other EEU member states and Central Asian countries,» Kashikov said.
At the same time, he warned that competition would become tougher for local sellers. Many merchants source goods from China and resell them at a markup intended to cover logistics, customs clearance and customer service.
Read also: Digital goldmine: What Kazakhstanis really spend on online marketplaces.
«Pinduoduo largely works directly with manufacturers, making it nearly impossible to compete on the price of identical products. The hardest-hit categories will be unbranded goods, including household items, accessories, clothing and other small consumer products. Ultimately, consumers stand to gain,» Kashikov said.
Are Chinese platforms already hurting sales?
Kashikov said local sellers were already feeling pressure from Chinese e-commerce platforms. Consumers in Kazakhstan actively order goods through Pinduoduo, despite the platform’s lack of a Russian-language interface. Deliveries are handled by third-party logistics providers.
The president’s press office previously reported that the joint venture between Kazpost and YTO Express had delivered 12.5 million parcels from China.
«Goods are cheaper, the selection is vast, and consumers vote with their wallets. When the price difference is significant, they are willing to wait. Sellers in the low-price segment feel the pressure most acutely,» Kashikov said.
Bukhonin disagreed that Pinduoduo would have a substantial impact on the market immediately. He believes it could take another two to three years for the platform to significantly affect local businesses, as infrastructure must be established, customs arrangements put in place and consumer trust earned.
Until then, Kaspi and Wildberries are likely to remain the main marketplaces for many local sellers. Competition is also intensifying from other Chinese services, including Temu.
The risks for local sellers are therefore likely to grow gradually rather than emerge all at once when Pinduoduo launches. Bukhonin said it remains unclear what support the government will provide to Kazakhstani businesses. If the tax burden continues to rise, local sellers will find it even harder to compete with foreign platforms.
Read also: E-commerce marketplaces begin to phase out sellers.
«Local sellers will survive only if they have a predictable and favorable tax regime during this transition. Otherwise, in two or three years, the question will no longer be whether a competitor has arrived, but whether any local sellers are left. That is why we established the ecoms.kz sellers’ association, which I helped co-found, and are actively inviting online merchants to join,» Bukhonin said.
Compete on service and delivery speed, not just price
Kashikov said competing with Chinese platforms on price alone was futile. Instead, sellers should rethink their strategies and focus on delivery speed — for example, by offering same-day delivery. Even with local logistics hubs, Chinese e-commerce platforms would struggle to match that level of service, he said.
Entrepreneurs should also develop their own brands and offer additional value. Customer service, warranties, after-sales support, product bundles and the ability to tailor products to specific needs can all help differentiate local businesses. Sellers should aim to offer complete solutions rather than individual products alone.
Another priority is diversifying sales channels. In addition to marketplaces such as Kaspi, Wildberries and Ozon, sellers can use their own websites, social media and brick-and-mortar stores. Niche markets where Chinese platforms face greater barriers — including products that require certification and large, bulky items — may offer further opportunities.
Bukhonin also recommended capitalizing on advantages that overseas platforms may find difficult to match: locally available inventory, same-day or next-day delivery, easy returns, warranties and personalized online consultations.
High-quality product listings and customer reviews can provide another competitive edge. On platforms such as Kaspi and Wildberries, shoppers consider more than price when deciding what to buy.
Bukhonin advised sellers to gradually phase out product categories in which their prices are higher than those of Chinese competitors primarily because of shipping and resale costs.
How the government can support local sellers
Kashikov outlined three steps the government could take to help Kazakhstani businesses compete with foreign marketplaces.
1. Level the playing field for local and foreign sellers
According to Kashikov, goods in parcels valued at up to 200 euros can be imported duty-free and exempt from value-added tax (VAT), typically without certification or labeling requirements. By contrast, Kazakhstani entrepreneurs importing goods must pay customs duties and 16% VAT, as well as meet certification and labeling requirements.
Although duties and VAT have applied to parcels valued above 200 euros since July, Kashikov said, the bulk of low-cost goods remains particularly sensitive to these differences in trading conditions.
2. Introduce a dedicated tax regime for e-commerce
E-commerce differs from traditional retail in its operating costs and business requirements, Kashikov said. He proposed a turnover-based tax of 1% to 2% for online sellers, replacing the standard 4% rate under the simplified tax regime. He also called for deductions for business-to-business (B2B) transactions and simpler labeling requirements for small batches of goods.
3. Develop domestic logistics
Kazakhstani entrepreneurs need access to affordable warehousing, order fulfillment services and low-cost domestic shipping, Kashikov said.
He argued that there was no need to ban platforms such as Pinduoduo. Instead, the government should create conditions that allow Kazakhstani entrepreneurs to compete with foreign platforms on equal terms.