The ongoing strength in its e-commerce business is good news for China, which has been involved in a yearlong trade dispute with the U.S. I saw an interesting piece of statistic on US e-commerce market this morning from RetailSails newsletter (really good retail blog on US market, recommended), and decide to compare the stats between China and US.. e-Commerce in China will grow by 17.4% on average each year; growth in the US will be significantly smaller China will dominate the global online fashion market with a revenue of more than ⦠Asia-Pacific will account for 42.3% of retail sales worldwide, North America will capture 22.9%, and Western Europe will make up 16.2%. China's economy was devastated by the novel coronavirus outbreak in the first two months of the year, according to data published Monday, and analysts say the nightmare is far from ⦠While there I had the opportunity to meet with Michael Michelini a talented entrepreneur and Internet marketer who is well versed in Co China/US commerce. That is how America was built to be such a creative and dynamic land. Less professional seems more real, that the seller actually has possession of the goods, and isn’t just pulling them off the internet and putting them on his / her online shop. I have been selling online in USA since 2004, and started selling online in China in 2008. Meanwhile, scores of footwear and apparel brands say they’re looking to move their production out of China and into alternative sourcing hot spots like Vietnam and Mexico, moves that could have negative implications for China’s economy. Again, the advantage Chinese e-commerce has over USA ⦠Again, the advantage Chinese e-commerce has over USA is that it learned from American systems and built a better system from the ground up. Following my visit, I interviewed Michael about his experience living and doing business in China. US Census Bureau Retail Trade site Monthly Retail Trade - Quarterly E-Commerce Report Historical Data This Javascript allows the page in IE to resize to the minium width of 783 pixels ⦠Amazon Prime is working on speeding up US delivery times, but China is way ahead of America in the speed of delivery. Starting in July 2018 the U.S. government levied a 25 percent tariff on over 800 categories of goods imported from China. E-Commerce is in its heyday in China, representing approximately 35% of the overall retail market, it is a global leader. People had to make business happen, and didn’t have prior experience and networks to go on. US. It is truly becoming a cashless society with the battle of online payments between two ecommerce giants – Tencent’s Wechat Wallet / Wechat Pay vs Alibaba’s Alipay. Payment for Chinese e-commerce is also commonly held in an escrow and then released once the delivery confirmation is made in the shipping system (which is integrated). In addition, Chinese make contracts/agreements much more complex – and discuss each point in detail. sometimes this can affect cash-flow, because the seller cannot use the funds to purchase the goods (drop ship) and has to finance the order upfront. Want to read more articles like this one? I like to say, Americans don’t like to waste time bargaining. E-commerce growth: China vs. in China, O2O is all too common. The figure is especially impressive given that the nation only overtook the U.S. as e-comm’s worldwide leader six years ago. All rights reserved. America is a much younger culture, therefore they trust much quicker – as there isn’t any pre-existing family business relationships and “Circles” in industries. There he has resources for entrepreneurs and business interested in doing business in Asia. What is considered pretty and useful in US is so different from that of China. 10 LinkedIn Marketing Hacks That Are Guaranteed to Get you More Connections, 4249 E Pratt Ave Suite B, This system did enable Chinese e-commerce to grow to the level it is now and it also simplifies the dispute process. In 2016, Chinaâs e-commerce ⦠High-speed rail and public transport. Global infrastructure improvements could mean more cross-border e-comm, the report notes, with demand for luxury goods, including designer apparel, driving the trend in China. If you look at TaoBao, the Chinese version of eBay, it has chats built into its system and shows if the seller is online or not with a status bubble on the listings. ⦠QQ and Ali Wan Wan are the two most common chat systems for doing domestic Chinese business – and people of all ages use it, not just kids. China has a huge demand for foreign goods. China is poised to become the worldâs top retail market in 2019, surpassing the US by more than $100 billion, according to eMarketerâs latest worldwide retail and ecommerce forecast. Chinese bargain more, way more, than Americans. With the rise of Wechat and the Wechat wallet the Chinese consumer, from college student to grandparent has connected their bank account to their phone. If you have ever thought about doing business in Asia or just want to stay up to date with the current business environment in Asia then I encourage to get ahold of Michael over at his site Global from Asia. Are E-Commerce Sites Covered by the Americans With Disabilities Act? But in China, more People Chat online instead of making calls or emails. On its own, China represents more than half (54.7%) of worldwide internet sales. With a rich history of corporate responsibility, Deckers Brands embraces a holistic approach to doing the right thing. The ⦠In China⦠⦠BEIJING: China has over taken the US to become the world's largest online retail market as its E-commerce revenues grossed USD 439 million last year constituting 7 per cent of its GDP, according to a new report. Its also used as a way to check before you buy. Still, e-commerce is a young industry in China and there is room for much more growth. Maybe thatâs why USA has a debt problem? In conclusion, people are people, in many ways the same between cultures. This stands for online to offline, and with the rise of mobile payments in China, and the usage of QR codes, you can order a breakfast on the side of the road from a cart and pay with your phone. In addition, taking me to some great restaurants Michael took me around to tour local a hackerspace, a local Shenzen startup as well as the Baidu headquarters (the Google of China). In 2012 I had the opportunity to visit Shenzhen China. We ⦠Many buyers like to see if the buyer is online, and chat for a few reasons, to bargain (we’ll cover below) as well as to just make sure the seller is “alive” and not a cheat. 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Payment and shipping is also separate in American e-commerce, where in China they are integrated. First let’s define E-commerce, or buying Online. Here are five ways the U.S. and China trade war is impacting ecommerce â in some ways you may have never considered. Much more direct, the quoted price is supposed to be the end price. Beijing retaliated with duties of 5% to 25% on $60 billion in U.S. goods. Although there are more people shopping online in China than in the U.S., only 14% of Chinaâs population shop ⦠Payment and shipping is also separate in American e-commerce, where in China they are integrated. I define e-commerce as basically the “E” or electronic addition to normal e-commerce, which is the exchange of goods or services for other goods or services – normally now currently traded for goods or services. E-commerce sites in China tend to be louder, busier, more colorful, more texts, and use smaller photos. Four in five Chinese e-comm dollars (80%) are spent using a mobile device, compared to just 64.4% worldwide. Chinese consumers have adopted to mobile payments much faster than in America. Retail e-commerce sales in China is accounted for more than half of the global retail e-commerce sales. In 2017, Chinese consumers spent more than ⦠Still active both in USA and Chinese e-commerce, I will take this post to outline differences I have noticed along the way doing Chinese e-commerce and “American” or English or “international” e-commerce. India and the Philippines both have seen 30%-plus increases in growth this year, with gains above 20% in China, Malaysia and Indonesia. This type of a payment, escrow, delivery, release system in China also shows the level of distrust people have. The current state of e-commerce in China. 1. e-Commerce: China vs. the US Whitepaper 2017 e-Commerce & Retail 1. e-Commerce in China will grow by 17.4% on average each year; growth in the US will be significantly smaller 2. Despite all of this China is growing & changing quickly- and the newer generations are much more curious and open-minded. What Are Topic Clusters and Why You Need them! Please fill out this field with valid email address. If not in 2013, no later than 2014, China's e-commerce will have a bigger gross merchandise volume than in the United States. The quoted price is never supposed to be the actual price, its always up for negotiation. E-commerce gross merchandizing volume (GMV) growth % year-on-year E-oee oss ehaniin ole oh % year-on-year SOURCE: McKinsey China Digital Consumer Trends 2019; eMarketer 2014 15 16 17 2018 134% 14% 47% 27% 15% 31% China ⦠This is a big opportunity for foreign brands looking to tap into the Chinese e-commerce market, as the growing middle class continues to budget for Western goods. Maybe that’s why USA has a debt problem? It’s not just in China that e-comm spending is soaring; the rest of the Asia-Pacific region is shopping online more than ever, too. Run the Numbers: US-China Trade War May Send Imports to a Record Low in 2019, Are E-Commerce Sites Covered by the Americans With Disabilities Act? According to the projections, by 2020 e-commerce market in China will be bigger than American, British, Japanese, German and French e-commerce markets combined. Therefore a few things cross our minds before giving this seller our money….in any country or any culture: Is this seller real, will they honor the transaction by shipping my goods on time, and making sure I am a satisfied customer even after the transaction. Businesses and consumers stand to lose the most. Below I’ll cover a few key topics in an e-commerce transaction: In China, customers want to see real photos of a product. ecommerce usa vs china $ online sales could reach 650 billion by 2020 usa china Chinaâs etail industry posted 1.4b 317m 120 % compound annual growth since 2003 *US: 17% 230 5% $ 210 >6% $ size of ecommerce market (2012) billion billion ecommerce ⦠China has the most mobile users in the world and more e-commerce activity than any other country in the world. The eBay plan of action in the United States ⦠Fast, easy, and secure – people are making payments and bridging the online and offline worlds here in China. I’ve been based in China since the end of 2007. Payment for Chinese e-commerce is also commonly held in an escrow (alipay) and then released once the delivery confirmation is made in the shipping system (which is integrated). Chinaâs E-Commerce share is expected to reach half of the global market by 2020. Everything You Need to Know About Nordstrom’s Black Friday & Cyber Monday Deals, COVID-19 Turned Nordstrom Into a 'Majority-Digital' Business -- What Analysts Are Saying About the Department Store's Strategy, Farfetch, Alibaba & Richemont Join Forces on Game-Changing China Luxury Deal, Dior Will Release a Collection Exclusively for China's Singles' Day, US-China Trade War May Send Imports to a Record Low. In 2012 I had the opportunity to visit Shenzhen China. Companies like Apple and Walmart have filed letters of opposition to the U.S. ⦠WordPress.com VIP. Please be aware that China's total retail sales is still ⦠I had originally made the trip to Shenzhen for business and was there for a little over a week doing training for a newly launched website for DOWIN Lightning Technologies. Credit cards are more commonly used in USA, but growing fast in China. China's retail market will become the largest in the world, exceeding sales in that of the United States in 2019 and topping $6 trillion in 2020, an analysis says. This May, President Donald Trump ordered a tariff increase from 10% to 25% on $200 billion worth of Chinese imports — the third tranche of tariffs since the dispute ramped up last year — and also threatened to hike levies on another $300 billion worth of products. When it comes to e-commerce sales, no country even comes close to China. For our success in international e-commerce, we need 1 key thing, Awareness that these differences exist, and that we need to leverage them in each various culture/country. E-commerce services such as trading platform services, logistics distribution and electronic payment have been intensively developed to support and facilitate the development of cross-border e-commerce. In the US, consumers spent $513.61 billion online in 2018, an increase of 14.2% from last year. When buying online, the “e” part, we cannot meet our seller or buyer face to face and must use the E, or Internet, as a medium to complete the transaction. According to a recent eMarketer report, online sales in China are expected to reach $1.935 trillion in 2019 — more than triple the projected $586.92 billion in sales for the U.S., the world’s No. Chinese consumers are ahead of the rest of the world when it comes to shopping via their cell phones, both in terms of buying on mobile and in using mobile payment apps for online/in-store purchases. But companies like Steve Madden, Walmart, Macy’s and JCPenney have all cautioned that new tariffs could hurt their business. Spokane, WA 99202. The internet has become a critical element of China⦠⢠Growth Trend: E-commerce sales in the U.S. has grown ~51% over the last four years, while China ⦠Chinaâs cross-border e-commerce ⦠eMarketer projects the worldwide e-commerce market to hit $3.535 trillion in 2019, a 20.7% rise over last year. If the price is too high and unreasonable, then they will go on to the next seller, they won’t bother to try to bargain. In the USA, people want to see professional photos, so that they see the seller put the time and care into the product listing and therefore will put the time and care into your order. China recorded $1.1 trillion, representing ~20% of total retail sales. US v Chinese e-commerce industry development. E-commerce represents a rising share of ⦠2 e-comm market. China will dominate the global online fashion market with a revenue of more than US$285bn in 2021 3. Will my personal information be safe when passed to this seller? This has enabled the e-commerce sector in China to flood in prominence, as selling on the web is the least expensive and most effortless path for more small-scale organizations to gain more access into a more substantial market and customer base. I had originally made the trip to Shenzhen for business and was there for a little over a week doing training for a newly launched website for DOWIN Lightning Technologies. Americans aren’t accustomed to chatting….it started with AOL in the 90s, and was mostly for teenagers to gossip and waste time. The ways we build trust is different in different cultures…and e-commerce clearly defines these cultural differences. Powered by According to a recent eMarketer report, online sales in China are expected to reach $1.935 trillion in 2019 â ⦠When it comes to e-commerce sales, no country even comes close to China. A proposed 25% levy on the fourth tranche of tariffs, which would have impacted footwear, apparel and other accessories, was suspended at the end of June. In November 2020, China's total retail sales of consumer goods reached 3,951.4 billion yuan (about US$600.70 bn), up 5% year-on-year, 0.7 percentage point faster than that of the previous ⦠For ecommerce, Chinaâs dominance means that 62.6% of all digital sales will take place in Asia-Pacific. In addition, taking me to some great restaurants Michael took me around to tour local a hackerspace, a local Shenzen startup as well as the Baidu headquarters (the Google of China). What’s the Real Value of Content on E-commerce Sites? As we said above, the delivery is made after payment is deposited into the seller’s account in USA, whereas in China it’s in escrow. It makes people take more time when conducing business transactions and requires that they build enough trust in the business relationship before conducting business. China is a much more established culture, and in a way that culture element holds the country back. While there I had the opportunity to meet with Michael Michelini a talented entrepreneur and Internet marketer who is well versed in Co China/US commerce. Today, China has the largest digital buyer population in the world, amounting to ⦠Below are the insights he shared with me on the differences between doing business online in China vs the US. But it’s cultural experience that defines us. Does Click Through Rate (CTR) Really Matter, 18 SEO experts divulge how they divide their time (on-page & off-page). The real difference between China and US E-commerce. Meanwhile, mobile payment apps are used by 81% of Chinese shoppers, while only 27% of Americans pay using this method. Visit Shenzhen China build enough trust in the United States ⦠High-speed rail and public transport much faster in... 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