Xiaohongshu (RED) EC Store Setup Guide for Overseas Brands

In China, Xiaohongshu (RED) is far more than just a social app—it has become a major platform where consumers make purchasing decisions. Today, its monthly active users (MAU) have surpassed 350 million.

For many global brands, Xiaohongshu represents a compelling gateway into the Chinese market. However, complex onboarding procedures and security deposit requirements often pose a significant hurdle.

In this guide, we’ll map out the end-to-end process for overseas brands to open a EC store on Xiaohongshu. We’ll also provide an in-depth breakdown of the core operational fees and security deposit requirements.

* Information as of September 2026.

About Xiaohongshu (RED)

Xiaohongshu (RED) is a social platform where users document and share their lifestyles through images, text, and short videos. It also functions as a powerful product-discovery community that directly shapes consumer purchasing decisions – a concept often referred to in China as “zhongcao” (grass‑planting).

Users turn to the platform to share daily life snippets and recommend favorite products. Over time, searching Xiaohongshu for authentic reviews before making a purchase has become second nature for a growing number of consumers.

By seamlessly merging content sharing with e-commerce, Xiaohongshu launched its native commerce feature, “Marketplace”. This move has attracted a massive influx of brands, giving rise to its unique “zhongcao” (grass‑planting) economy.

For overseas brands, Xiaohongshu is more than just a channel for brand awareness—it serves as a direct sales pipeline to Chinese consumers, creating a complete cross-border closed loop.

The Full Onboarding Process for Overseas Brands

For overseas brands, onboarding on Xiaohongshu (RED) typically follows a standardized three-stage process: account registration, official enterprise account verification, and store setup.

Step ①：Account Registration

You can register using a valid phone number (including international numbers) or an email address.

Step ②：Enterprise Account Verification

The official enterprise account is a prerequisite for running commercial promotions and opening a store. Once verified, the account receives a blue “V” badge, confirming its official brand status.

To complete verification, you will need to submit the following documentation.

The verification fee for an enterprise account is 600 RMB. After that, an annual review is required, and the fee for the annual review is also 600 RMB.

* Note: Enterprise accounts must complete the annual review within two months prior to the expiration date. Failure to complete the review on time or pass the review will result in the deactivation of official enterprise status and commercial privileges.

Step ③：EC Store Setup

Once your enterprise account is verified, you can apply to set up a EC store. At this stage, you will need to submit the following additional documentation.

Store Operating Fees

For overseas brands, beyond the enterprise account verification fee, day‑to‑day store operations mainly involve three core costs: basic technical service fees, payment channel fees, and the security deposit.

About the Security Deposit

The security deposit is paid to Xiaohongshu (RED) under the “one store, one deposit” principle. It guarantees product and service quality, ensures compliance with store agreements and legal obligations, and safeguards consumer rights.

Think of it as a “just-in-case” reserve fund.

Xiaohongshu’s security deposit consists of two components: the Basic Security Deposit and the Risk Security Deposit.

* The store operator pays the fee directly to Xiaohongshu, not to any agency or third party.

① Basic Security Deposit

The Basic Security Deposit consists of two parts: the Category Deposit and the Floating Deposit.

Paid upon store opening, this balance covers any consumer compensation or penalty fees incurred during store operations.

1. Category Deposit

• The Category Deposit varies by product category, ranging from $800 to $10,000.
• If the store operates across multiple categories, the deposit is calculated based on the category with the highest amount – deposits are not cumulative.

2. Floating Deposit

On the 2nd of each month, Xiaohongshu recalculates the Floating Deposit based on the previous month’s settled sales. Merchants will be notified if the required deposit amount increases.

When making the final payment, the higher of the two—the Category Deposit or the Floating Deposit—will apply as the required deposit amount.

* Example: General Merchandise Store

The store operates in two categories: 3C Digital Accessories and Pet Food and Supplies.

• 3C Digital Accessories：$3,500
• Pet Food and Supplies：$800

Since the store operates across multiple categories, the higher amount applies. In this case, the Category Deposit for this store would be $3,500.

For the current month, the store’s settled sales amount is RMB 110,000, which corresponds to a Floating Deposit of $700.

Since the deposit is determined by the higher of the two—the Category Deposit and the Floating Deposit—the Category Deposit of $3,500 applies.

Therefore, the store’s total deposit for the month would be $3,500.

② Risk Security Deposit

The Risk Security Deposit is an additional deposit required only when specific conditions are triggered.

It is primarily used for order after-sales handling and consumer experience compensation. Under normal business operations, this deposit will not be triggered.

1. Trigger Conditions

• When an order issue arises that requires a refund or compensation, the platform will first deduct the amount from the merchant’s settlement account.
• If the balance in the settlement account is insufficient, the platform will first advance the payment to the consumer on behalf of the merchant. The platform will then deduct the corresponding amount from the merchant’s Basic Security Deposit to repay the advance.
• If the Basic Security Deposit remains insufficient and the advanced amount remains unpaid for more than 3 days, the Risk Security Deposit will be triggered.

2. Collection Standards

For standard stores, the Risk Security Deposit is twice the Category Deposit, capped at RMB 10,000.

* Specific conditions and amounts are subject to the information displayed on the Xiaohongshu Merchant Portal.

About Security Deposit Management

Security Deposit Deductions

1. In the event of after‑sales claims or similar situations during day‑to‑day operations, Xiaohongshu will first deduct the amount from the store’s balance. If the store balance is insufficient, Xiaohongshu will then deduct from the security deposit.

2. Xiaohongshu reserves the right to deduct part or all of the security deposit in accordance with the agreement and platform rules under any of the following circumstances:

• Violation of platform rules
• Major negative public opinion incidents
• Third-party complaints, arbitration, or similar legal actions

（Primary Uses: Consumer compensation, compensation for platform losses, payment of liquidated damages, and other related costs.）

Security Deposit Replenishment

When a deficit occurs in the security deposit account, prompt replenishment is required.

* Specific conditions and amounts are subject to the information displayed on the Xiaohongshu Merchant Portal.

Security Deposit Refund

* Specific conditions and amounts are subject to the information displayed on the Xiaohongshu Merchant Portal.

Summary

For overseas brands, Xiaohongshu (RED) represents a vast and highly attractive market.

While cross-border onboarding and platform rules may seem daunting at first, the actual process is straightforward once you break down the workflow and deposit requirements.

We hope this guide provides a clear, actionable roadmap to help you confidently take your first step onto Xiaohongshu.

Disclaimer

Information as of August 2026.

Platform policies, deposit standards, and onboarding requirements are subject to change.

Please refer to official Xiaohongshu documentation.

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