The fast growth of online cross-border shopping - Ben Cavender

Ben Cavender

The already booming e-commerce in China is getting fast an international leg as internet users discover the advantages of buying goods online abroad, says retail analyst Ben Cavender in the China Daily. And the large e-commerce players quickly grab market share.

The China Daily:

After learning how cross-border shopping online can save them money－despite the relevant taxes and shipping charges－and provide guarantees of authenticity, they are giving domestic goods more of a cold shoulder. 

There are a number of reasons behind the rise of cross-border e-commerce in China and the launch of various platforms to service this trend is natural, said Ben Cavender, an analyst at China Market Research Group. 

More Chinese now shop overseas or pay for third parties to purchase products and mail them back to China, because many products either cannot be found in China or they are too expensive, he said. 

About half of all cross-border shopping online by Chinese goes through Amazon.com and these products are sent to customers via shipping agents or online agents, said Niu Yinghua, vice-president of Amazon China. 

As the agents bump up the price, Amazon decided to introduce a direct shipping service for its Chinese customers that can be as low as $1.99 per pound of freight, Niu added. The central government has adopted a quite open-minded stance in response to this exploding e-trend. Premier Li Keqiang, for example, included plans to expand the number of trial cities operating this system into his Government Work Report this year. 

Many Chinese consumers find themselves shut out of the shopping spree because of the language barrier, which has inspired e-commerce companies to step into the breach. 

According to data from the Ministry of Commerce, there are more than 200,000 enterprises in China offering cross-border e-commerce service through various platforms. 

The big e-commerce players in China are fast grabbing territory in this emerging market, said Cavender. 

In February 2014, Chinese e-commerce giant Alibaba Group announced the official launch of Tmall Global, a site designed to give Chinese online shoppers a platform to buy foreign-branded products directly.

More in the China Daily.

Ben Cavender is a speaker at the China Speakers Bureau. Do you need him at your meeting or conference? Do get in touch or fill in our speakers´ request form.

Are you looking for more innovation experts at the China Speakers Bureau? Do check out this list.   

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Why Amazon teams up with Alibaba - Ben Cavender

+Benjamin Cavender 

In a surprise move US internet giant Amazon is opening a webshop at Tmall, part of its competitor Alibaba ´s empire. Retail analyst Ben Cavender explains why Amazon is teaming up with its competitor to enter the China market at CNBC.

CNBC:

Amazon is currently doing a test run of its Tmall store, with an official launch slated for the end of March or early April. 

The U.S. e-commerce giant currently offers consumer electronics, food and beverage, household and baby and maternity items on the site. 

Ben Cavender, an analyst at China Market Research Group says the move is perhaps an acknowledgement that they cannot tackle the China market alone. 

"I wonder if they are conceding the market and recognizing that it's better to work through Tmall because that's where the traffic is going," he said. 

China's B2C e-commerce industry is currently dominated by Tmall and JD.com, which hold 57 and 21 percent shares of the market, respectively, according to iResearch. 

Alibaba's Tmall shop could also be part of a strategy to breed familiarity around its brand which is less known among Chinese consumers, Cavender said. 

"They may be conceding revenue to Alibaba via Tmall in the near term, but in the longer-term it could pay off," he said.

More at CNBC.

Ben Cavender is a speaker at the China Speakers Bureau. Do you need him at your meeting or conference? Do get in touch or fill in our speakers´request form.

Are you looking for more experts on e-commerce at the China Speakers Bureau? Do check our recent list.    

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