E-Commerce in China

What do you do if most people in your country don't use credit cards? Kevin Zhong, our correspondent in China, reports three main methods:

1. COD. The most popular method is to pay upon delivery. This is mainly because that most of people don't have credit cards, and the payment upon delivery is the safest way for them.
2. Bank Transfer. Another popular approach as to transfer money from the customer's bank account online, similar to using an ATM. The service is provided by China Merchants Bank. It is reported that there are over 150 million bank (including debit) cards in China.
3. Remittance. Remittance of payment after the order is also used in e-commerce.

The number of Internet users in China is mushrooming. According to a report by the China Internet Network Information Center, with data through 12/31/00, there are 22.5 million Internet users who use the Internet one hour a week or more, about 1/3 the number of users in the US. Gender breakdown is 70% male, 30% female. Users are primarily young, with 15% under 18, 41% ages 18 through 24, and 19% ages 25-30. 63% and unmarried. 41% have graduated with at least a bachelor's degree. http://www.cnnic.cn/develst/e-cnnic200101.shtml

E-commerce, too, is burgeoning. The China E-Commerce Association and China Network Evaluation Center reported business to consumer sales of US$62.9 million in 2000, and projects US$190 million in 2001, and US$3.2 billion by 2004. An April 9 story by the Xinhua News Agency, reported that currently China has more than 600 online stores, located mainly in Beijing, Shanghai, and Guangzhou. Best-selling items include computers and communications products, personal-use items, books, magazines, videos, music products and electrical household appliances. As an e-commerce infrastructure is built and a nationwide credit system and laws developed, B2C commerce will expand even faster.

A good English source of information on business in China can be obtained from China Online. http://www.chinaonline.com/