Who Really Is DHgate?

Inside the Viral Comeback of China’s Original Cross-Border E-Commerce Platform

DHgate’s shopping app surged to #2 on the U.S. App Store in April 2025 – second only to OpenAI’s ChatGPT – amid a burst of viral TikTok videos highlighting China’s factories and cheap goods.

An unlikely name in Chinese e-commerce leapt to the top of U.S. app charts this April. DHgate, a veteran B2B cross-border e-commerce platform founded back in 2004, suddenly found its mobile app ranked #2 on the U.S. App Store (Free category) – just behind ChatGPT and ahead of big names like Google Maps and WhatsApp . For a platform that had long languished outside mainstream consumer awareness, this was a startling comeback driven by TikTok-fueled virality and global trade turbulence.

The immediate catalyst was a wave of viral TikTok videos tagged as the “Chinese factory secrets” trend. In these clips, Chinese manufacturers and content creators pull back the curtain on global supply chains – revealing that many products Western consumers assumed were “local” or premium brands are actually made in China . One TikTok creator, for example, showed luxury-brand handbags and shoes (Louis Vuitton, Prada, etc.) side-by-side with lookalikes, subtly implying viewers could find nearly identical items on DHgate for a fraction of the price . Commenters even nicknamed DHgate the “yellow app” (a nod to its gold-colored icon) and flooded these videos asking for links and tips on how to buy these bargains .

Compounding the trend, the U.S.–China trade spat gave these videos extra punch. In early 2025, the U.S. government (under a revived Trump-era tariff policy) sharply hiked tariffs on Chinese goods – some duties spiking up to 145% . This sparked anxiety among American small businesses and consumers about rising prices and inflation . Amid these jitters, TikTok clips showcasing China’s low-cost manufacturing struck a chord. American users flocked to DHgate in hopes of “buying direct” from Chinese factories before tariffs made goods more expensive . As a result, DHgate’s app downloads skyrocketed. On April 13, 2025, the DHgate app was downloaded 117,500 times in a single day on iOS – a 732% jump over its 30-day average; U.S. users accounted for 65,100 of those downloads (up 940% vs. prior average) . In just a few days, the app’s U.S. ranking rocketed from #352 into the top 3, as if “riding a rocket” .

This sudden explosion of traffic has given the two-decade-old company a new moment in the spotlight. DHgate tapped into U.S. consumers’ ravenous demand for high bang-for-buck goods, leveraging “short-video era traffic dividends” from TikTok . The official DHgate TikTok account itself swelled to over 94,000 followers amid the buzz . It’s a resurgence few saw coming, raising DHgate from relative obscurity to a “phenomenon-level” viral hit in the West .

However, turning fleeting virality into lasting success is another matter. The spike in consumer attention presents both opportunity and peril for DHgate. The platform’s sudden popularity rests on the same ultra-low-cost supply chain that once gave it a sketchy reputation for knock-offs. As we’ll explore, DHgate’s ability to convert this viral fame into sustainable growth will hinge on its supply chain efficiency, compliance with regulations, and user experience . It also faces fierce competition and the challenge of balancing a core B2B business model with an influx of ordinary consumers enticed by TikTok. To understand where DHgate might be headed, let’s first look back at how it began – and at the visionary entrepreneur behind it.

Founder Diane Wang and the “Online Silk Road” Vision

Any story of DHgate’s rise must start with its founder, Diane Wang (Wang Shutong). Now one of China’s prominent tech entrepreneurs, Wang’s career trajectory in the 1990s and early 2000s set the stage for DHgate’s creation. She graduated from Beijing University of Posts and Telecommunications in 1991 and began as a university teacher, but quickly transitioned into the nascent Chinese tech industry . By 1993, Wang had joined Microsoft China, where at age 25 she became the company’s youngest executive – eventually serving as Microsoft China’s Director of Business Development . In 1999 she moved to Cisco China as a senior manager, notably the only woman on Cisco China’s management team at the time .

But Wang was not content to remain a corporate executive. In 2000 – the same year Alibaba was founded – she took the entrepreneurial leap, teaming up with future Xiaomi founder Lei Jun and entrepreneur Chen Nian to start Joyo.com . Joyo was an online bookstore and e-retailer (often likened to an early Amazon of China). Under Wang’s leadership as CEO, Joyo grew quickly and was acquired by Amazon in 2004, becoming the foundation of Amazon’s China operation . This successful exit gave Diane Wang both the capital and the confidence for her next venture – one even more ambitious in scope.

In August 2004, just after selling Joyo, Wang founded DHgate (敦煌网) with a bold vision: to create China’s first cross-border B2B e-commerce platform, essentially an “online Silk Road” for small businesses . The name “敦煌” (Dunhuang) refers to a famous Silk Road trading city, underscoring her aim to digitally connect Chinese suppliers with buyers around the world. “I wanted to pave a Silk Road on the internet,” Wang later said of DHgate’s mission .

Launched in 2005, DHgate was indeed pioneering. It came years before Alibaba’s AliExpress (B2C) or other Chinese platforms went global. Wang’s strategy was to focus on the long tail of international trade – empowering small and medium-sized enterprises (SMEs) to buy and sell across borders. “We grabbed the long tail of e-commerce – providing a platform for small suppliers and small buyers,” Wang explained in an early interview . In practice, this meant that even a tiny shop or solo e-commerce entrepreneur in the U.S. or Europe could source goods directly from a Chinese factory via DHgate, without needing the massive order volumes required by larger wholesalers. Likewise, small Chinese manufacturers and merchants gained a channel to reach global customers they couldn’t access via Alibaba’s big-Buyer-focused marketplace.

Wang’s “connection not competition” philosophy has guided DHgate’s development. “The second half of cross-border e-commerce isn’t about how many competitors you can defeat, but about how many partners you can connect and work with,” she has said . This emphasis on building networks – connecting SMEs to the global market, connecting influencers to supply chains (as we’ll see with social commerce), and connecting with partners for logistics and payments – has been a recurring theme in DHgate’s evolution.

Over the past 20 years, Diane Wang also became an advocate for digital trade on the global stage. She served as China’s representative on the APEC Business Advisory Council (ABAC) starting in 2011 and co-chaired APEC forums on SMEs and women’s entrepreneurship . Under her leadership, DHgate pioneered the APEC Cross-Border E-commerce Training (CBET) initiative in 2014 to train SMEs in e-commerce, and by 2018 DHgate’s platform boasted 19 million global buyers and 1.9 million suppliers . Wang has been recognized internationally, named among “Asia’s 25 Most Influential Businesswomen” by BusinessWeek and serving as a Chinese delegate to the G20’s B20 summit .

Through all this, she remained at the helm of the company she founded. As of 2025, Diane Wang is still DHgate’s CEO and Chairwoman, exemplifying rare longevity in China’s fast-changing tech scene. Her leadership and vision – from Microsoft to Joyo to DHgate – have been integral to DHgate’s story, driving it to continually adapt while staying true to the core idea of connecting “Made in China” with the world.

DHgate’s Journey: Timeline and Development from 2004 to Today

From its founding in 2004 to its recent revival, DHgate has had a winding journey. Here’s an overview of key milestones in DHgate’s development over two decades:

• 2004-2005 – Founding and Launch: Diane Wang establishes DHgate in Beijing (Aug 2004) as China’s first B2B cross-border e-commerce marketplace. The website officially launches in 2005 , targeting overseas buyers and small Chinese suppliers. Early funding arrives in 2006-2007 as venture capital sees potential .

• 2008-2010 – Early Growth: DHgate gains traction among global small buyers seeking cheap Chinese goods. In 2008 it ranks 7th on Deloitte’s Technology Fast 50 Asia list . By 2009, it reaches 1 million registered buyers . DHgate positions itself as a major channel for China’s countless factories to sell abroad in small volumes. It faces rising competition from Alibaba’s B2B site (alibaba.com) and globalsources.com, but carves out a niche with low order minimums and escrow payment protection (holding funds until buyers confirm delivery, to build trust).

• 2010s – Expansion and Competition: Throughout the 2010s, DHgate expands its catalog and global reach. It reportedly surpassed 10 million product listings and millions of users during this period . By 2018, DHgate covered 225 countries and had 19 million buyers and nearly 2 million suppliers . However, Alibaba Group’s platforms (both the **Alibaba International B2B portal and AliExpress for direct retail) grew even faster, often overshadowing DHgate. In 2020, DHgate’s share of China’s cross-border B2B e-commerce market was only 1.4% (ranked #2), dwarfed by the 26.2% share of the top player – Alibaba’s international marketplace . In website traffic, Alibaba’s B2B site commanded ~80-90% of visits among major platforms, whereas DHgate was around 18% . Competitive pressure was intense, and DHgate remained a relatively small player in the shadow of e-commerce giants.

• 2020 – Social Commerce Pivot with MyyShop: Facing new competition from upstarts like Shein and the changing landscape of online shopping, DHgate launched a major strategic initiative. In late 2020 it introduced MyyShop, a decentralized social commerce SaaS platform . This marked a pivot from purely marketplace operations to enabling influencer-driven online retail. MyyShop allows content creators, small online sellers, and “dropshippers” to easily integrate DHgate’s product supply into their own shops or social media accounts. The move was aimed at riding the wave of “retail everywhere” – leveraging TikTok, YouTube, Instagram, and other social platforms as new sales channels. (More on MyyShop in the next section.)

• 2021 – Attempted IPO: In mid-2021, DHgate filed for an IPO on the Hong Kong Stock Exchange, aiming to raise capital for further expansion . The filing (since expired) revealed financials and highlighted challenges: DHgate was profitable but growth had slowed, and it faced compliance costs to police counterfeits. Ultimately, the IPO did not materialize (perhaps due to market conditions and regulatory scrutiny on Chinese tech firms). DHgate remained a private company, and in 2022 it reorganized as “DHgate Group”, explicitly framing its two “engines” as the DHgate marketplace and the MyyShop social commerce platform .

• 2022-2023 – Laying Social Commerce Groundwork: DHgate Group doubled down on social commerce and overseas localization. It formed partnerships with TikTok and Facebook/Instagram, and even co-hosted events like VidCon (the big creator convention) to promote MyyShop . By 2022, MyyShop had collaborated with over 10 million influencers (each with 100k+ followers) across platforms . Many Chinese exporters began using MyyShop to push products that could become “TikTok viral” hits . DHgate was planting seeds within the burgeoning creator economy, hoping that influencer-driven sales could become its second growth curve . This effort foreshadowed the TikTok-driven boom that would erupt in 2025.

• 2025 – Viral Breakthrough: As detailed, DHgate’s moment arrived in April 2025, when TikTok “factory reveal” videos and the U.S. tariff scare combined to send its app installs and traffic to record heights . DHgate swiftly rolled out a “Tariff Shield Plan” for its sellers on April 11, 2025, promising extra exposure, subsidies, and 1-on-1 logistics support to merchants who pledged not to raise prices despite tariffs . It also launched a “Stock & Save Sale” promo to encourage overseas buyers to stock up on goods . In other words, DHgate seized the moment to assure buyers it would buffer them from tariff impacts and keep prices low – reinforcing its low-cost appeal. The company professed to be surprised by the “unprecedented” surge in U.S. consumer interest, but it quickly embraced the influx of traffic .

Today, DHgate Group operates its flagship DHgate platform alongside MyyShop and associated services. According to the company’s official data, it has over 2.5 million registered suppliers, offering 34+ million products, and nearly 60 million registered buyers globally . It serves buyers in 225 countries and regions, with North America and Europe accounting for over half of its customers . To facilitate trade, DHgate has built out logistics and payment infrastructure: it offers 100+ international logistics routes and maintains 14 overseas warehouses for quicker local delivery . It even developed its own payment and financing services for cross-border transactions, aiming to smooth pain points for SMEs. In short, from a two-person startup (legend has it the first order on DHgate in 2005 was for $500 worth of goods ) to a platform enabling millions of trades, DHgate has come a long way.

Yet, despite this scale, DHgate until recently kept a low profile. It was often considered an “old guard” e-commerce firm that had fallen behind flashier newcomers. The TikTok episode has thrust DHgate back into the limelight – perhaps just in time for its third decade, the company is reinventing itself once more.

How DHgate’s Business Model Works – and What Sets It Apart

How exactly does DHgate operate? At its core, DHgate is a marketplace platform that connects sellers (mostly in China) with buyers (mostly overseas). It is often described as B2B e-commerce, meaning it was designed for business purchasers, but in reality it supports very small wholesale orders – even quantities of just 1-5 pieces in many cases. This blurs the line between B2B and B2C, effectively letting individual consumers buy direct from factories (much like AliExpress, though DHgate launched earlier). Several key aspects of DHgate’s model differentiate it from the giants: