The development of e-commerce in China

The key factors for the future development of e-commerce are payment, logistics, and data. How to seize these three key factors is not only a challenge, but also a great opportunity for all the Internet industry and all those who are interested in future economic development. The dilemma of high logistics cost, low efficiency, and poor service has become a key factor hindering the future development of e-commerce. Self-built warehouses may become the key to the transformation of e-commerce.

The development of e-commerce in China

With the increase in my country’s Internet penetration rate, the development of e-commerce has taken off, with an average annual growth of 28% in transaction volume. In 2010, the transaction volume of my country’s e-commerce market reached 4.5 trillion yuan. Moreover, due to the explosion of Internet users and the increase of e-commerce platforms in recent years, online shopping has “flyed into the homes of ordinary people”, which gives hope to websites that have been in operation for many years or are rising stars.

The core of e-commerce development is service. Although the e-commerce industry is showing a booming development momentum, there are still some problems that need to be solved urgently. It can be said that the e-commerce development environment is not perfect, the construction of relevant laws and regulations is lagging behind, and the service supervision system, statistical monitoring system, and industrial investment and financing mechanism are urgently needed to be established.

According to survey data from the China Chamber of Commerce, 69% of online shoppers are most dissatisfied with the quality of online shopping products. “No matter where you go, the focus of e-commerce is to provide consumers with high-quality products, affordable prices, and convenient services, so that the majority of netizens can buy with confidence. Only in this way can e-commerce develop.” Daoweigou Chairman Lai Hua said.

E-commerce has greatly improved the benefits and efficiency of traditional business activities. E-commerce on the Internet has its own unique advantages compared with traditional business systems. These advantages include:

  1. Brand new space-time advantages Traditional business is store-style sales characterized by fixed sales locations (ie stores) and fixed sales hours. Sales on the Internet are carried out through online stores featuring information databases, so its sales space extends with the extension of the network system. There are no geographical barriers, and its retail time is determined by consumers, namely online users. Therefore, sales on the Internet have a brand new spatio-temporal advantage over the traditional sales model. This advantage can meet the consumption needs of online users to a greater extent. In fact, shopping on the Internet has no national boundaries and no The difference between day and night.
  2. Reduce the dependence on materials and fully display the advantages of products and services. Traditional business activities must have a certain material basis before they can carry out business activities. Virtual enterprises can be established through the Internet, such as online shops and online banks. It does not require much to open and develop. At the same time, companies can also transfer savings to consumers. This is why the famous online bookstore Amazon can provide consumers with preferential discounts that traditional bookstores cannot provide. At the same time, online sales can take advantage of the performance of online multimedia, which can fully display the internal structure of products and services, which helps consumers to fully understand the product or service before buying it. Although traditional sales can display real products to customers in stores, for ordinary customers, the understanding of the purchased products is often very superficial, and they cannot understand the internal quality of the products. It is often easy to be affected by the appearance of the products. The confusion of external factors such as packaging. In theory, consumers buying rationally are not only to improve their consumption utility, but also to save social resources.
  3. Reduce inventory and reduce transaction costs. In order to cope with the unpredictable market demand, enterprises have to maintain a certain inventory of products and raw materials. The root cause of inventory is poor information, and e-commerce based on information technology can change the problem of inaccurate and untimely information in corporate decision-making. Through the Internet, the market demand information can be transmitted to the enterprise’s decision-making production, and the enterprise demand information can be immediately transmitted to the supplier to supplement the supply in time, so as to achieve zero inventory management. At the same time, enterprises can improve marketing efficiency and reduce promotional expenses through network marketing activities. According to statistics, advertising on the Internet can increase sales by 10 times, but its cost is 1/10 of traditional advertising; moreover, e-commerce can reduce procurement costs, because Internet companies can seek the best prices in the global market Suppliers, reduce intermediate links. Some data show that the use of EDI can usually save companies 5% to 10% of procurement costs.
  4. Close user relationship and deepen user understanding. Due to the real-time interactive communication of the Internet and the absence of any interference from external factors, it is easier for consumers of products or services to express their own evaluations of products or services. Retailers can have a deeper understanding of the intrinsic needs of users. On the other hand, the instant interactive communication between retailers has promoted the close relationship between the two.
  5. The advantages of reducing intermediate links and lower transaction costs E-commerce redefines the traditional circulation model, reduces intermediate links, makes direct transactions between producers and consumers possible, and changes the way the entire social economy operates to a certain extent.


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