Electronic Commerce

Overview

China’s e-commerce has grown rapidly in recent years.  Statistics show that China’s e-commerce business volume reached 11 billion US$ in 2000, including 50 million US$ from Business to Consumer (B2C) transactions and 11 billion US$ from Business to Business (B2B) transactions.15

The country’s internet regulator, the Ministry of Information Industry, says that for 2002 it will top 1.2 billion US$.  The majority of China's e-commerce Web sites are based in Beijing, Shanghai and Guangdong.   A survey conducted by China Internet Network Center shows growing popularity on B2C, however, many significant obstacles currently prevent China's e-commerce economy from achieving its full potential. There are numerous payment issues hinder e-commerce. Obstacles include: the low use of credit cards and other forms of electronic payment; minimal consumer confidence in online security; an undeveloped system of personal credit; lack of integrated payment systems connecting financial institutions to consumers and industry; and lack of streamlined electronic authentication and clearance procedures for payment authorization and verification. 16

Factor about B2C 17

The Internet users frequency of Accessing the E-business Websites :
Frequently 21.9%
Sometimes 49.8%
Rarely 25.8%
Never 2.5%

The users ever purchased commodities or services via Internet last year :
Yes 31.6%
No 68.4%

The users ever purchased commodities via auction websites last year :
Yes 6.9%
No 93.1%

The users ever successfully made second-hand dealing last year :
Yes 8.7%
No 91.3%

The Purpose for Users to Purchase Online:
Saving Time 48.3%
Reduce Costs 38.8%
Easy to Operate 41.7%
Looking for Rare Commodities 28.9%
For Fun and Curiosity 31.5%
others£º 1.6%

Product (Service) that Users Had Purchased
Books and Magazines 58.0%
Computer Appliance 33.7%
Photographic Equipment 3.6%
Communication Appliance 15.5%
AV Equipment 34.4%
Living and Housing 11.6%
Clothing 4.4%
Family Electrical Appliance 5.6%
Sports Equipment 4.4%
Medical Care Services 3.1%
Present Delivery 14.7%
Financial and Insurance Services 2.6%
Ticket Ordering 9.7%
Educational Services 11.8%
Others 3.1%

Payment Methods :
Cash and Carry 42.8%
Online payment 15.6%
Post Offices transfer 3.9%
Bank Transfer 6.8%

Deliver methods that being used :
EMS 20.5%
Other express deliveries 7.1%
Postal parcel 25.5%
Air, train parcel 2.2%
Home delivery 44.4%
Others 0.3%

Have you ever experienced that goods have not been delivered after your order and payment :
Yes 13.9%
No 86.1%

The satisfaction degree of users when exchange through the Internet :
Quite satisfied 3.5%
Satisfied 34.8%
So so 39.9%
Unsatisfied 20.4%
Quite unsatisfied 1.4%

Primary Obstacles of Online Purchase :
Security can not be guaranteed 31.0%
Inconvenient Payment 11.8%
Quality of products, after service and credit of the producer can not be guaranteed 
30.2%
Delivery is time wasting, the channel is not expedite 13.9%
Unattractive Price 6.3%
Unreliable Information 6.3%
Others 0.5%

 Most Promising Online Business In the Future (multiple choice) :
Online shopping 54.5%
Online Stock Trading 38.0%
Online For-Profit Information Services 34.2%
Online Game and Entertainment Services 36.3%
Online Communication 55.4%
Virtual Community 20.8%
Online Program Ordering Services 38.4%
Online Education 51.8%
Online Hospital 26.7%
Others 0.7%

Status of Purchasing Goods or Services Online

Source: www.cinc.com