A New Silk Road - Cross Border B2C eCommerce into China
The ecommerce market in China is experiencing rapid growth as Chinese consumers shift from traditional shopping methods to shopping online.
Cross-border ecommerce is experiencing unprecedented growth in popularity, and goods sold via the business-to-consumer (B2C) channel are expected to contribute an increasing share of the total market.
Cross-border ecommerce is spreading to a wider population base with purchases amounting to a spend of $85.76 billion in 2016.
According to a joint study undertaken by Accenture and AliResearch, 200 million Chinese overseas shoppers or “Hai Taos” will purchase 245 Bn US$ worth of goods from abroad by 2020.
Chinese consumers rely on reviews and word-of-mouth recommendations from trusted sources to make decisions on products, and with overseas goods and brands being perceived to be of higher quality than those available domestically, the product’s origin is considered as an important measure of quality.
With integrated supply chain solutions allowing delivery times from the online order to the consumer in China to be as little as 4 days, it is not unknown for the end consumer to suspect that their goods originated from China, leading to disputes.
To avoid reputational issues, vendors insist that shipping labels, showing the origin country, are not covered by subsequent courier labels.
In an effort to further reassure the end consumer of a product’s origin, logistics providers have implemented track & trace solutions which provide detailed tracking information covering the entire shipping process.
It is clear that when providing a B2C logistics solution for delivery to customers in China, the importance of implementing a high availability supply chain visibility system at the centre of operations, which can support operational processes in real time, and support data gathering and visibility at every step of the shipping process cannot be overlooked.