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China’s e-commerce market to reach US$718 billion in 2017

Nurdianah Md Nur | Nov. 13, 2014
Reports recommend retailers to adopt mobile commerce and social commerce, as well as to solve the lack of high quality logistics provider problem to benefit from the expected growth.

Problems that retailers normally face with logistics providers include late deliveries, damaged and lost parcels, negative attitudes from delivery people and slow cash-on-delivery processes. These problems could leave customers with a negative impression of the retailer, causing customer loss.

To counter this problem, the study recommended retailers to build their own logistics networks, outsource to third-party providers, or form partnerships and acquire existing providers. However, hybris noted that in-house logistics might not be a viable long-term solution as e-commerce market growth will cause them to be unsustainable. Strategic partnerships between strategic between e-commerce firms and third logistics provider might therefore be the better option.

"As the overall geographic coverage of the Chinese e-commerce market expands, the ability to offer reliable and consistent services and delivery will be the major source of competitive advantage," says A.T. Kearney partner and study co-author Mui Fong Goh.


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