Recently we’ve been writing articles relating to e-fulfilment strategies and solutions for Australian companies. But how does the online market look in countries other than Australia? And what can we learn from them?

Read on to discover how China’s e-commerce market is evolving into the largest in the Asia-Pacific region and how Australia is following the same path.

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China’s e-commerce industry

China’s e-commerce market is now a trillion dollar business and looks set to grow year by year as it becomes the preferred purchasing method for China’s growing middle class. The following infographic shows the e-commerce market in Asia and specifically the global powerhouse nation of China plus five interesting facts demonstrating why 90% of China’s B2C purchases are made online today.

5 Facts about the Chinese e-commerce industry

  • Asia dominates global e-commerce: Over 40% of internet users around the globe live in Asia. Regarding e-commerce, 36.2% of worldwide B2C e-commerce sales will come from Asia in 2014 and are expected to increase to 39.7% in 2016.
  • When we say Asia, we mean China: 6 out of every 10 dollars spent online in Asia comes from China.
  • Estimated B2C e-commerce sales in the Asia-Pacific region will grow from $383.9 billion to $1052.9 billion in 2017. China is the main attributor to this number, with e-commerce sales increasing from $181.62 billion in 2013 to an estimated $439.72 billion in 2016. The next biggest increase within the Asia-pacific region is Japan, $118.59 billion in 2013 to $143.13 billion during 2016.
  • As a nation, China is very web-educated with 74% of citizens using Smartphone’s for product price comparisons and reviews, compared to the global average of 43%. They are also much more likely (37%) to purchase these goods through the mobile devices than the global average (26%).
  • In regards to industry specific goods, the top 3 most purchased products online globally include consumer electronics, books and clothing. Luxury goods are the least popular product category bought online.

Infographic on the Asian e-commerce industry

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E-commerce and supply chain management

Although China has a bigger population with more online users than Australia, it’s a good example to see how businesses are succeeding in using the e-commerce channel. So what can Australian businesses learn from China?

  • The importance of quick and responsive e-fulfilment is mandatory to create a competitive advantage that meets growing customer expectations and greater demand through online avenues. Just like in China, air freight will be one of the key mode of transport considering the far distances in Australia.
  • Furthermore Australian businesses need to start now with preparing and streamlining their supply chain strategy for the rapidly growing demand in order to not stay behind.
  • Every business is different – an in-house IT solution or a outsourced solution of an e-fulfilment company that meets the business’ requirements – if your considering to expanding your retail business online, make sure you have the right e-fulfilment strategy and technology in place. Please find more information in our article Can your current ERP (Enterprise Resource Planning) or WMS (Warehouse Management System) handle e-fulfillment?.

Want to speak to a comprehensive 3PL provider that can assist with your supply chain management? Contact BCR today.

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For more than a century, BCR has continued to help small, medium and large businesses achieve an optimum logistics solution with warehousing and transportation, including air freight and sea freight services to and from the major ports including Brisbane, Sydney, Melbourne, Adelaide and Fremantle (Perth).

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