The Development of Chinese E-Commerce

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.

E-commerce has greatly improved the benefits and efficiency of traditional business activities. Compared with traditional business systems, e-commerce on the Internet has its own unique advantages. 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.

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. For example, the opening and development of online shops and online banks does not require much At the same time, companies can also transfer savings to consumers. This is why the famous online bookstore Amazon can provide consumers with discounts that traditional bookstores cannot provide.

3. Reduce inventory and reduce transaction costs. In order to cope with the unpredictable market demand, companies 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.

4. Close user relationship and deepen user understanding. Due to the real-time interactive communication of the Internet and the absence of interference from any 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.