Ecommerce in China - How Far Ecommerce Can Go
If you're a retailer in China, you probably have heard that one ecommerce giant made 100 million yuan in gross merchandise value last year. Ecommerce is a new concept in the retail sector, but its potential is huge. In this article, we'll look at how far this new model can go, its benefits, and the barriers it faces. And, of course, we'll talk about the barriers it faces as it continues to grow.
ecommerce giant says it made 100 million yuan in gross merchandise value
Alibaba, the ecommerce giant, is set to announce its first quarter profit on Wednesday, after announcing a hefty increase in sales. The single-day sales that took place last November topped four hundred billion Yuan, or $74.1 billion USD, an increase of 26% over the same period in 2018. The sales were driven by 470 brands that have made over 100 million yuan in gross merchandise value on Alibaba's platforms like sell on Walmart.
The ecommerce giant said that sales of 382 brands totaled more than 100 million yuan on Tmall within 45 minutes after midnight on Thursday. Those brands included Huawei, Erke, Apple, and L'Oreal. As of two am on Thursday, Xiaomi had made a 15-billion-yuan profit. It launched its festival on October 20, and sales totaled over 100 billion yuan by the end of the day.
Alibaba launched its annual online blitz earlier this year, kicking off two main discount periods. Alibaba said that the blitz saw a peak of 583,000 orders per second, with more than half of those being made online. The site claims that a record number of brands from outside China participated, including nearly 31,000 of them. And two-thirds of them participated for the first time.
Benefits of ecommerce
Among the many benefits of ecommerce is the cost savings. Customers no longer have to worry about leaving their homes to make a purchase, and they can browse a wide variety of products or services from the comfort of their home. They don't have to rush or worry about finding the right store during a busy time, either. Besides, ecommerce sites are available round-the-clock, ensuring that they never have to be closed.
Apart from saving money on operating costs, ecommerce also provides many other benefits. The benefits of ecommerce are endless. It has the potential to increase your sales worldwide, and it requires minimal financial investment. Unlike brick-and-mortar stores, ecommerce requires only a small initial investment. The only initial expenses required are for the website, and the rest is maintenance and stock. But opening a brick-and-mortar store requires thousands of dollars. That's not to mention the cost of signage, store equipment, and design. And many of these expenses don't justify the sell on Etsy.
Another benefit of ecommerce is that customers can buy products from their home whenever they want. The internet allows customers to shop at anytime and from any location. This is especially convenient for those who are busy with work and/or family. Additionally, ecommerce sites are available 24 hours a day, seven days a week. Customers are able to browse and buy items, even if the physical store is closed. In addition, ecommerce sites provide product details, warranty information, reviews, and descriptions. And because it is possible to buy products online, there is no need for sales people or retail locations to attend to orders.
Barriers to market growth
e-commerce spending will grow 13.4% this year, compared to only 2.6% growth for the US economy in 2012. However, this growth rate is not guaranteed. MarketingSherpa asked marketers to rank barriers to ecommerce market growth by difficulty level. A high difficulty level would represent the least challenging issue, while a low difficulty level would indicate a relatively easy barrier to overcome. Each bar represents the difficulty level, from one to eight.
Many online retailers are concerned with the expense and complexity of foreign currency payments. In addition, accepting payment methods not common in North America is often an impediment. For example, many consumers in Brazil prefer Boleto Bancario to pay by card online. Other barriers include local regulations and customs duties. Language, customer service, and the cost of fulfillment are the most common problems that entrepreneurs face when selling products internationally.
Other obstacles to ecommerce market growth include a lack of regulation and the scarcity of local retailers. However, if these issues are addressed, e-commerce is likely to thrive and attract young, tech-savvy shoppers. A few other barriers include language differences, and limited payment options. And finally, there are challenges related to postage, privacy, and postal systems. Ultimately, a strong e-commerce market can help the global economy.
