Abstract
In China, modern information technology is rapidly remodeling its distribution channel of social products and the transaction mode of online shopping is gradually accepted by more and more consumers. For e-commerce enterprises engaged in online sales, design and execution of logistics operations mode, especially the outsourcing decision for each logistics link, is one of the key components of strategy for e-commerce enterprises at the present stage. This decision not only directly influences the operating cost and service level of an enterprise, but also is crucial to the formation of long-term competitive advantage of an enterprise.
This is a preview of subscription content, log in via an institution to check access.
Access this chapter
Tax calculation will be finalised at checkout
Purchases are for personal use only
Notes
- 1.
In China, the complete C2C online second-hand goods market is not well-developed. In general, small-scale individual business online shops are classified as C2C e-commerce. The difference between small-scale C2C shops and small-scale B2C shops lies in that small C2C shops are not registered as company and do not apply for business license or pay business tax. Although they purchase, display and sell products on network platform, their transactions are regarded as second-hand goods transactions in view of market regulation. Both “e-commerce enterprise” and “online shopping enterprise” mentioned in this chapter include B2C and C2C types.
- 2.
Compiled from relevant data released by iResearch, an independent marketing research firm in China.
- 3.
Refer to Liu et al. (2013, Chapter VIII) for more details concerning China’s e-commerce as well as the development background and development status of online shopping.
- 4.
Compiled from China Research Center of the Internet of Things (2012).
- 5.
Also known as order fulfillment center.
- 6.
Except for a few large-scale e-commerce enterprises (such as JD.com), the trunk transportation link of online shopping logistics is generally undertaken by third-party transport companies with long-distance trunk transportation capability.
- 7.
For each link of online shopping logistics, classification of self-operation and outsourcing is directed at the main service contents of enterprise. In fact, there is no enterprise in China that realizes the complete self-operation of distribution center and express service. In some remote regions, only few express enterprises like EMS can provide delivery service; online shopping enterprises can only choose outsourced logistics service to fulfill orders for these regions. Moreover, in addition to its self-operated B2C platform, JD.com also has an open online shopping platform, by use of which small-scale B2C or C2C enterprises can provide online shopping service, so the logistics service of these enterprises are in essence outsourced to the logistics system of JD.com or its contracted partners.
- 8.
On March 30, 2013, the original domain name of 360buy.com is officially changed to JD.com.
- 9.
Vertical e-commerce refers to an e-commerce mode operated in depth in certain industry or market segment, and all commodities on a vertical e-commerce website are products of the same type. Comprehensive e-commerce is the opposite and refers to an e-commerce mode with diverse products. With the intensified competition of e-commerce market, vertical e-commerce enterprises with business covering specific types of commodities and services emerge among online shopping enterprises. Currently, they are mainly specializing in books, garments/shoes/hats, digital/electronic products, maternal and infant products, cosmetics, tickets, etc.
- 10.
Alipay is an online payment enterprise subordinate to Alibaba Group, similar to Paypal of Ebay.
- 11.
Shen Xuanhao, President of Lefeng.com holds that, it will be more or less sufficient for vertical type e-commerce enterprises with annual sales volume between 2 billion RMB and 3 billion RMB to set up warehouses in Beijing, Shanghai, Guangzhou and Chengdu in general. The reason being that major online shoppers at home are mostly concentrated in large-sized cities; these four cities can radiate to the Yangtze River Delta, the Pearl River Delta and other regions with concentrated online shopping. He also believes that it is not cost-effective for e-commerce enterprises with annual sales volume below 3 billion RMB to build more warehouses than these four, for the additional gain will be very minimal. Above view compiled from: Shen (2012).
- 12.
Customers beyond the service scope cannot enjoy the service of 1-h delivery, but can buy books through online shops operated by Kuaishubao.com on Taobao.com and receive regular express service.
References
China e-Commerce Research Center (CECRC) (2013) 2012 data monitoring report for online retail market of China, 2013-01-29. http://www.100ec.cn/zt/upload_data/wenjian/2012wlls.pdf
China Research Center of the Internet of Things (2012) Report on development of e-commerce and logistics in China. Research Department of Truck Logistics, China Research Center of the Internet of Things, Beijing
Liu BL et al (2013) Contemporary Logistics in China: Transformation and Revitalization. Springer, Berlin/Heidelberg
Shen XH (2012) Analysis on construction of logistics systems of vertical e-commerce enterprises – an interview with Shen Xuanhao, Vice-president of Lefeng.com. Logist Mater Handl 9:74–77
Author information
Authors and Affiliations
Corresponding author
Editor information
Editors and Affiliations
Rights and permissions
Copyright information
© 2014 Springer-Verlag Berlin Heidelberg
About this chapter
Cite this chapter
Jiao, Z. (2014). Operations Mode and Development Trend of Online Shopping Logistics in China. In: Liu, Bl., Lee, Sj., Wang, L., Xu, Y., Li, X. (eds) Contemporary Logistics in China. Current Chinese Economic Report Series. Springer, Berlin, Heidelberg. https://doi.org/10.1007/978-3-642-55282-3_11
Download citation
DOI: https://doi.org/10.1007/978-3-642-55282-3_11
Published:
Publisher Name: Springer, Berlin, Heidelberg
Print ISBN: 978-3-642-55281-6
Online ISBN: 978-3-642-55282-3
eBook Packages: Business and EconomicsBusiness and Management (R0)