E--commerce, the electronic commerce that has revolutionized the world and the way businesses are carried out, has become the order of the day if people…
If there is any country that is surging ahead in the arena of ecommerce in terms of revenue generation then it is definitely China that unanimously tops the charts. The country is aiming at doubling its e-commerce sales value to 18 trillion Yuan by 2015 end. It would by then definitely become the leading market for e-commerce globally. This was stated by the country’s top industry regulator. People would be under the impression that it is the United States that would have the maximum number of internet users but contrary to this belief it is the Chinese who top the list with a whopping 513 million users.
The 11th Five Year Plan statistics reflected that China recorded a staggering growth rate that increased by 250% in the year 2010. The number of people that purchased goods from the online platform in 2010 was 161 million and they made purchases worth 513.1 billion Yuan. And the scenario from then on has only been expanding into different industries like transportation, trading, agriculture, travel and finance industries.
Online shopping has become the order of the day as it is very convenient and allows the shoppers to save on a lot of time and energy too. As a result of which the methods through which payments are made also have increased through online third parties and through more secure payment gateways too.
China has recorded a remarkable increase of the amount received through payments from the third party services and is reported to reflect a 60 fold increase. And this channel, the business to customer ecommerce is predicted to become the principal driver of the online shopping industry in China. Though this may be the standard pattern that is observed in majority of the countries it is China that leads the entire bandwagon which his depicted from the statistics that have been collected by reliable sources in the industry.
A deeper delving in the facts and figures showed that the major revenue churners were websites that amazon.com, taobao.com and 360buy.com…websites that sold directly to the customers that have a major holding in the sales recorded in the ecommerce markets during the last year. And very soon with the kind of progress that the country China is making it may surpass the other biggies like the united States and Japan in another three years only to become a big name or focal point for all online services as well as goods.
Major sales were in the garments and luggage segment which was closely followed by the sales in the electronic devices segment. Whatever is the percentage it is a very lucid fact that ecommerce sites are minting money in the Chinese markets. This boom could partly be attributed to the advancement of the technology in the mobile devices which has further boosted the ecommerce in different countries and very visibly in China. There have been many people who swapped mobiles in order to get connected to the 3G or the third generation network and this is the major contributing factor to a great extend for the huge ecommerce growth in the year 2010.
Keeping this positive growth in mind the China government too is encouraging the big companies to make a transition into the online platform as the medium sized and small sized companies were responsible in bringing a major chunk of online sales; it would only be tripled or quadrupled when the big companies also make a foray into the online platform.
Companies are thinking of numerous ways in which the entire situation could be a win-win situation for buyers as well as sellers and this is witnessed in the efforts of the small companies towards encouraging group buying from the online stores that could fetch the customers’ highly affordable prices or even larger discounts.
Making a foray into the online platform through ecommerce stores will not only be beneficial for the buyers it will also be highly beneficial for the business owners too as they will be saved of a lot of overhead costs, manpower costs and also energy costs.
With a perfect ecommerce system in place and the right product tracking systems, there is nothing much that the business owner could lose out on at all. These efforts will further be ameliorated by the Chinese government when it will place more emphasis on the public buying e-tickets which will definitely be a great boost to the public transport system in the country.
There is nothing like reaching a saturation point in the ecommerce sales. The horizons keep extending and China is now targeting the overseas market to spread its wings. All said and done, even when there are so many positives that come along with ecommerce one cannot overlook the flip side and the difficulties that the markets pose. There is still a lot to be accomplished in terms of legislations and also online shopping services. However, this is not at all detrimental in the growth trajectory of the country.
About Hemant Parmar
Hemant Parmar is an eCommerce expert and a keen Magento consultant who specializes in meeting the needs of businesses in the e-commerce space. Years in the eCommerce market make him a perfect choice for sharing his expertise on eCommerce and Magento 2 development. He believes that customers need to be met no matter how challenging it might be.Read More