XHS Marketplace Fees Explained: Commission, Service & Advertising Costs
Date Published
Table Of Contents
1. Why Understanding XHS Fees Matters Before You Enter
2. Store Setup Costs: Deposits and Account Verification
3. Commission Fees: How XHS Takes a Cut of Your Sales
5. Xiaohongshu Advertising Costs: The Juguang Platform
6. KOL & Influencer Marketing Costs via Pugongying
7. How XHS Fees Compare to Other Chinese Marketplaces
8. Total Cost Planning: What to Budget for XHS
For international brands eyeing Xiaohongshu — also known as Little Red Book or RedNote — the platform's social commerce potential is hard to ignore. With over 300 million monthly active users, the majority of whom are young, high-spending urban consumers actively searching for products to buy, XHS has evolved into one of China's most commercially powerful platforms. But before you open a store or launch your first campaign, you need a realistic picture of what it actually costs to operate there.
XHS fees come in several layers: upfront deposits to secure your seller account, ongoing commissions on sales, payment processing charges, paid advertising spend via the Juguang platform, and KOL collaboration fees managed through Pugongying. Understanding how each of these works — and how they've changed with recent policy updates — is essential for building a profitable China strategy.
This guide breaks down every fee category on Xiaohongshu's marketplace, including the platform's latest commission incentives for new sellers, so you can plan your budget with confidence and avoid costly surprises.
Why Understanding XHS Fees Matters Before You Enter {#why-fees-matter}
Xiaohongshu is often praised as a more accessible entry point into Chinese e-commerce compared to the heavyweight costs of Tmall or JD.com. That reputation is largely deserved — but it can also lull brands into underestimating the full cost picture. <cite index="15-1">Unlike Tmall or JD, which require high entry fees, costly flagship store setups, and annual commissions, Xiaohongshu lets brands engage and sell directly to consumers via content and influencer collaborations, without heavy upfront costs.</cite> That said, fees still accumulate across multiple categories, and knowing where your money goes helps you allocate budget intelligently.
<cite index="6-10">As of January 2025, the platform generates approximately 60% of its revenue from advertising, 30% from e-commerce transactions, and 10% from strategic brand partnerships.</cite> This revenue split tells you something important: advertising is the engine of the XHS commercial ecosystem, meaning paid visibility will likely be a meaningful line item in your budget regardless of how well your organic content performs.
For brands across beauty, fashion, F&B, or mother and baby categories, the investment is well worth analyzing carefully. If you want a broader picture of how to structure your XHS strategy by vertical, explore AllXHS's industry-specific Xiaohongshu marketing strategies.
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Store Setup Costs: Deposits and Account Verification {#store-setup-costs}
Before you can sell on XHS, you need to complete account verification and pay a security deposit. These are one-time (or annual) costs that vary based on your business type and where you're operating from.
Enterprise Account Verification
<cite index="14-6,14-7">Xiaohongshu supports enterprise verification for both Mainland China companies and overseas/HK/Macau/Taiwan business entities. Verification is handled on the Enterprise Account platform and is valid for one year, with a review fee currently listed as RMB 300.</cite> <cite index="24-21">An annual verification fee of CNY 600 applies for Professional Account renewal, though as of 2025, this fee is waived for the first year for foreign SMEs.</cite> This is a relatively low administrative hurdle compared to other major Chinese platforms.
Security Deposits
The deposit structure depends on your trading model:
• Domestic general trade merchants: <cite index="21-6">Under normal circumstances, the merchant deposit for general trade is RMB 50,000.</cite>
• Cross-border merchants: <cite index="22-22">The deposit for most categories of cross-border stores is USD 3,500.</cite>
• Personal stores (domestic): <cite index="24-12,24-13">As of 2025, there is no follower threshold required to open a personal store. These stores follow a "0 yuan opening" model, where the CNY 1,000 security deposit is only paid before your first withdrawal rather than upfront.</cite>
Deposits are refundable in principle and serve as a guarantee against policy violations. <cite index="21-10,21-11">The application and review time for Xiaohongshu entry mainly depends on the merchant itself. If the merchant can quickly fill in the entry information, pass the review in one go, and does not appeal the contract, then the entry can be completed within a week at the earliest.</cite>
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Commission Fees: How XHS Takes a Cut of Your Sales {#commission-fees}
This is arguably the most important fee category for sellers, as it directly affects your margins on every transaction.
Standard Commission Rates
<cite index="22-24">The Basic Technical Service Fee (commission) rate is generally between 2% and 5%.</cite> The exact rate depends on your product category. <cite index="24-20">Enterprise stores charge commission fees ranging from 3% to 5% depending on product category, with apparel at 3% and electronics at 5%.</cite> Health food and dietary supplements sit at 3%, while categories with higher transaction values or tighter regulatory oversight tend to attract higher rates.
The One Million Commission Free Plan (2025–2026)
In a significant move to attract and retain sellers, Xiaohongshu launched a major incentive in August 2025. <cite index="2-1">From September 1, 2025, to August 31, 2026, merchants will be exempt from paying commission on their first 1 million RMB ($137,000) in transactions, with only a 0.6% payment channel fee retained.</cite> This effectively gives new and smaller merchants a substantial runway to scale their sales volume before commissions kick in — a meaningful cost advantage when entering a new market.
Personal Store Commission
Not every store type is subject to standard commission fees. <cite index="24-14,24-15">Personal stores cannot conduct live-streaming sales and experience 50% reduced search weight compared to enterprise stores. Personal stores do not pay commission fees on sales.</cite> However, the trade-off is significant: personal stores are restricted to non-standard goods like second-hand items and handicrafts, making them unsuitable for most brands seeking a serious commercial presence.
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Payment Channel Fees {#payment-channel-fees}
Beyond the commission, XHS charges a separate fee for processing payments through third-party payment systems.
<cite index="22-26">Xiaohongshu charges cross-border merchants a payment channel technical service fee of 0.7%.</cite> <cite index="10-15">According to Xiaohongshu's business documentation, merchants are charged a 0.7% payment processing fee when users pay via WeChat Pay or Alipay.</cite> For domestic transactions under the commission-free plan, the retained fee drops to 0.6% rather than 0.7%.
It's worth noting that Xiaohongshu has recently acquired a payment license, which signals longer-term plans to internalize payment processing. <cite index="10-20">Xiaohongshu has officially obtained a payment license, marking a major step toward completing its commercial ecosystem.</cite> Once integrated, this could eventually change payment fee structures for merchants — something brands building a long-term XHS presence should monitor.
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Xiaohongshu Advertising Costs: The Juguang Platform {#advertising-costs}
Paid advertising on XHS operates through a dedicated platform called Juguang (聚光), and it's where most brands will commit a significant portion of their marketing budget.
What is Juguang?
<cite index="36-12,36-13">Juguang is Xiaohongshu's advertising and data analytics platform designed to help brands and e-commerce businesses maximize their reach and engagement on the social commerce platform. This tool provides advertisers with robust solutions for creating targeted ad campaigns, monitoring performance, and gaining insights into consumer behavior.</cite> <cite index="14-8">A verified enterprise account unlocks brand credibility and is the prerequisite route to Xiaohongshu's advertising stack (the Juguang ads platform at ad.xiaohongshu.com).</cite>
Ad Formats Available
<cite index="36-4,36-5">Xiaohongshu offers two primary types of ads: In-Feed Ads and Search Ads. In-Feed Ads are seamlessly integrated into the user's feed, mimicking regular posts to provide a non-disruptive experience.</cite> Search ads, by contrast, capture users at the moment they're actively looking for products or brands, making them particularly valuable for conversion-focused campaigns.
Advertising Pricing Models
<cite index="17-5,17-6">Cost Per Mille (CPM), the price advertisers pay per thousand impressions, serves as the fundamental pricing model for most Xiaohongshu campaigns. Unlike performance-based models that charge per click or conversion, CPM provides predictable budget planning while maximizing brand visibility.</cite> Juguang also supports CPC and CPE (cost-per-engagement) models.
<cite index="12-23">The cost-per-click of paid advertisements starts at 0.3 RMB/CPC and the minimum ad fee is 5K RMB.</cite> <cite index="20-2,20-3">The CPM for feed ads and banner ads usually ranges from tens to hundreds of yuan, depending on factors such as the time the ad is being promoted, the specific location the ad is being promoted in, and the specific audience segment the ad is targeting.</cite>
Seasonal Cost Variations
Timing your campaigns matters considerably for budget planning. <cite index="17-14,17-15">Seasonality dramatically affects Xiaohongshu CPM rates, with significant spikes during major shopping festivals. The 618 Mid-Year Shopping Festival (June), Singles' Day or Double 11 (November), and Chinese New Year periods see CPMs increase by 40–70% as brands compete for consumer attention.</cite> Planning campaigns outside these peak periods — or securing budgets well in advance — can meaningfully reduce your cost per impression.
Advertising Budget Allocation
<cite index="32-14">Most brands allocate 30–40% of their total Xiaohongshu marketing budget to paid advertising, with the specific mix depending on campaign objectives, seasonality, and competitive landscape.</cite> Industries with the highest competition, such as beauty and fashion, naturally see higher advertising rates. <cite index="20-4,20-5">The advertising cost on XiaoHongShu is also affected by the competitiveness of the industry you are in. For instance, popular industries on XiaoHongShu such as fashion and beauty will have higher advertising rates.</cite>
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KOL & Influencer Marketing Costs via Pugongying {#kol-costs}
For most brands on XHS, influencer marketing is not optional — it's how the platform's content-discovery model is designed to work. The platform's official KOL collaboration channel is Pugongying (蒲公英), also known as Dandelion.
Pugongying Service Fee
<cite index="13-13,13-14,13-15">REDNote provides an official Key Opinion Leader (KOL) platform called Pugongying. Pugongying charges a 10% service fee. Little Red Book encourages all KOL collaboration to go through Pugongying, otherwise the post could risk being blocked or have limited traffic distribution.</cite> <cite index="13-18">Around 90% of campaigns in the cosmetics industry go through Pugongying, and only around 50% of campaigns in the fashion industry go through Pugongying since the content could look more native.</cite>
KOL Pricing by Tier
KOL fees vary enormously based on follower count, niche, and content format. Below are current benchmarks:
<cite index="32-17">Xiaohongshu influencers are generally categorized by follower count and engagement rates:
• Micro-KOLs (5,000–50,000 followers): ¥2,000–¥8,000 RMB ($280–$1,120 USD) per post
• Mid-Tier KOLs (50,000–300,000 followers): ¥8,000–¥30,000 RMB ($1,120–$4,200 USD) per post
• Top KOLs (300,000–1 million followers): ¥30,000–¥80,000 RMB ($4,200–$11,200 USD) per post
• Celebrity KOLs (1 million+ followers): ¥80,000–¥300,000+ RMB ($11,200–$42,000+ USD) per post</cite>
Beauty and skincare is the most expensive vertical. <cite index="33-9">Beauty and Skincare KOLs command the highest rates, averaging ¥15,000 ($2,100) per post for accounts with 100,000 followers — approximately 50% higher than general lifestyle influencers.</cite> <cite index="33-11">Parenting and Mother-Baby Content Creators follow closely, with rates 30–40% above baseline.</cite>
Long-Term vs. One-Off Partnerships
<cite index="32-17,32-18">Many brands find better value in establishing ongoing relationships with KOLs rather than one-off posts. These collaborations typically cost 20–30% less per post than individual engagements but require commitments of 3–6 months.</cite> Product seeding is another lower-cost entry point: <cite index="11-13,11-14">product seeding costs include product value plus shipping (approximately ¥100–¥300 RMB per KOL) and management fees if using an agency to coordinate distribution. While not all KOLs will post about received products, this approach can generate organic coverage from approximately 10–30% of recipients.</cite>
To find and manage KOL partnerships effectively, brands can leverage the tools and templates available in AllXHS's free Xiaohongshu resources.
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How XHS Fees Compare to Other Chinese Marketplaces {#comparison}
Context matters when evaluating whether XHS fees represent good value. Compared to Tmall Global, where security deposits can reach RMB 100,000–150,000 for flagship stores and annual software service fees add another layer of cost, XHS's entry requirements are considerably lighter. The cross-border deposit of USD 3,500 is a fraction of what Tmall demands.
<cite index="15-13,15-14,15-15">On Tmall or JD, ranking well in search results often requires huge advertising budgets or heavy discounting. On Xiaohongshu, smart content strategy and engagement can rank your products organically. Niche, premium, or lifestyle brands thrive without needing to compete on price alone.</cite>
The real differentiator is the organic opportunity. Because XHS is a content-first platform, well-crafted notes can generate significant discovery traffic without any paid promotion. This makes the total cost of acquisition — when organic is working — considerably more favorable than pure transaction platforms.
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Total Cost Planning: What to Budget for XHS {#total-budget}
When building your XHS budget, it helps to think in three distinct cost buckets:
1. Platform entry costs (one-time or annual)
• Enterprise account verification: CNY 600/year (waived year one for foreign SMEs)
• Security deposit: USD 3,500 for cross-border merchants, or RMB 50,000 for domestic general trade
2. Transaction costs (per sale)
• Commission: 2–5% depending on category (waived on first RMB 1 million in sales through August 2026)
• Payment channel fee: 0.6–0.7% per transaction
3. Marketing and advertising costs (ongoing)
• Juguang paid ads: Starting from 0.3 RMB/CPC with a minimum deposit of 5,000 RMB
• KOL fees via Pugongying: ¥2,000 to ¥300,000+ per post depending on influencer tier, plus a 10% Pugongying service fee
• Agency management fees: Typically 10–25% of total campaign budget for brands working with specialist partners
For brands just entering the market, the commission-free plan introduced for September 2025 to August 2026 is a genuine opportunity to build GMV without the typical commission drag. <cite index="3-1">From September 1, 2025 to August 31, 2026, the first 1 million RMB in payment transaction amounts from the same merchant will be exempted from commission, and only 0.6% of the payment channel cost will be retained.</cite>
Understanding these layered costs is crucial for building a sustainable entry strategy. For expert guidance on how to structure your XHS investment, explore AllXHS's full suite of Xiaohongshu marketing services.
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Frequently Asked Questions {#faq}
How much does it cost to open a store on Xiaohongshu?
The minimum upfront cost for cross-border brands is a USD 3,500 security deposit plus an annual enterprise verification fee of CNY 600 (waived in year one for qualifying foreign SMEs). Domestic merchants face a higher deposit of RMB 50,000.
What is Xiaohongshu's commission rate?
Commission (the Basic Technical Service Fee) generally ranges from 2% to 5%, varying by product category. Enterprise stores typically pay 3% for apparel and up to 5% for electronics. Under the current commission-free plan, the first RMB 1 million in sales per merchant is commission-exempt through August 2026.
What is the minimum advertising budget on XHS?
<cite index="12-2">The cost-per-click of paid advertisements starts at 0.3 RMB/CPC and the minimum ad fee is 5K RMB.</cite> Realistically, meaningful campaign results require a sustained investment, and most mid-tier brands allocate well above this minimum.
Does Xiaohongshu charge a fee for KOL collaborations?
Yes. <cite index="35-22">If you hire influencers through Xiaohongshu's official KOL platform, expect a 10% service fee on top of the influencer fee.</cite> Some brands work directly with influencers to avoid this charge, though that approach carries content distribution risks.
Can international brands advertise on XHS without a Chinese entity?
<cite index="14-18,14-19">Yes, foreign companies can advertise on Xiaohongshu, but there are specific requirements. They must verify a business (Enterprise/Professional) account using valid business/licensing documents (foreign licenses are accepted), trademark proof, and follow the content and ad legal guidelines.</cite>
Final Thoughts
Xiaohongshu's fee structure is genuinely more accessible than China's legacy e-commerce giants, but that doesn't mean the costs are trivial. Thoughtful budget planning across all four layers — deposits, commissions, payment fees, and marketing spend — is what separates brands that break even from those that build real momentum in the Chinese market.
The platform's current commission-free incentive for new merchants represents a rare, time-limited window to establish your store and scale sales volume with reduced overhead. Pair that with a well-executed content and KOL strategy, and the return on investment can be compelling — particularly for lifestyle, beauty, fashion, and mother and baby brands whose products are native to the XHS audience.
For brands looking to go deeper, AllXHS provides the most comprehensive English-language resources available for Xiaohongshu marketing — from industry-specific strategy reports to hands-on tools that help you navigate everything from account setup to campaign optimization.
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Ready to build your Xiaohongshu strategy with confidence?
Whether you're just starting to explore the platform or looking to scale an existing presence, the team at AllXHS can help you navigate the costs, the content, and the commercial opportunity.