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

If you let other people sell on your platform, you first check the seller's identity, address, contact details, and license, then register them and open a file. Once the file is open, you go back and check again at least every 6 months. Who the seller is has to be reported to market supervision, the tax situation is reported to the tax authority every quarter, and the goods and transaction records are kept for 3 years. Miss 1 of these and you are first ordered to correct. If you do not correct, the fine is 20000 to 100000 yuan.

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.

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.

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 · 4

1. 全国人大常委会 (2018). 电子商务法（第十、二十七、二十八、三十一、八十条）. flk.npc.gov.cn/detail?id=2c909fdd678bf1790167…
2. 市场监管总局 (2021). 网络交易监督管理办法（市场监管总局令第 37 号，第八、二十四、二十五、三十一条）. gov.cn/gongbao/content/2021/content_5602020.htm
3. 国务院 (2025). 互联网平台企业涉税信息报送规定（国务院令第 810 号，第二、三、四、十条）. gov.cn/gongbao/2025/issue_12146/202507/conten…
4. 国家税务总局 (2025). 关于互联网平台企业报送涉税信息有关事项的公告（税务总局公告 2025 年第 15 号）. gov.cn/zhengce/zhengceku/202506/content_70297…