Internet Purchasing Portal to Facilitate Better Online Electronic Commerce Transactions in China Proposal Essay

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While China’s rapidly growing economy has facilitated wholesale purchases using credit cards via B2B transactions and platforms, a majority of the population still has limited access to credit cards that can facilitate international and, in some cases, domestic purchases (Xinsheng and Qi 33).

This is in part due to the restrictions placed by the Chinese government on its internal financial systems due to its desire to have greater control and limit foreign volatility from affecting local markets.

However, with the increase in internet usage, higher demand for smartphones and greater consumer interest in owning a PC, this has created an ever increasing level of localized demand for EC (Electronic Commerce) transactions as more local consumers within China realize the advantage of online purchasing. To meet this demand, it is recommended that an online purchasing gateway be created that allows local Chinese buyers to purchase products online yet make payments locally via a payment center or a bank using a product code.

China has experienced an exponential growth in internet subscribers with more than 18 million being added on a yearly basis. Combined with greater purchasing power as a result of China’s booming production based economy, this has resulted in more local consumers developing consumption habits outside of merely subsistence (Liu 266).

Convenience, novelty and, in some cases, luxury have become the factors by which local consumers within the country base their purchases (Stanworth, Warden and Hsu 461). The ability to accommodate these factors via EC has been at the forefront of the developing online marketplace within China and, as such; requires immediate attention in order to take advantage of this opportunity.

It is recommended that an internet portal be created that allows online transactions to be funneled via this gateway. All local consumers within China would have to do is create their own account and use this as a means of paying for all online transactions with merchants that also have accounts via the same gateway.

In order to process payments, a barcode or a serial number is sent to the client’s email account once a transaction has been initially processed online (Yali, Yang, and Beixin 24). The client would then take that serial number and barcode to the nearest authorized payment center or bank, have them scan the barcode and pay the amount indicated on the transaction.

Once the amount has been paid, the transaction is then completed with the item being sent to the address indicate on the internet portal account. If the customer has a credit card, the internet portal can process the transaction via agreements with the local bank that the card belongs to.

The advantage of this method is that it allows individuals without credit cards to make online transactions. Also, customers that do have credit cards yet are unable to use them to purchase goods internationally can use the merchant portal as a middle man in order to process the transaction for them (Chang, Chen, and Dobbs 73).

Given the sheer size of China’s economy and the number of consumers within it, it is likely that many online merchants, both local and international, would have very few reservations about opening their own online accounts via the payment portal in order to make their goods and services more accessible to local buyers in China.

Number of Internet Users vs. Number of Credit Cards Issues in China
Internet UsersCredit Cards
2012564,000,000270,000,000
2013617,580,000320,000,000
2014641,601,070360,000,000
2015650,000,000390,000,000

(Zhang, Bian and Zhu 304)

What this data shows is that the number of internet users increases at almost the same pace as the number of credit cards available within China. This shows that as more people have credit cards and access to the internet, they need a reliable method of online payment processing for the local and international goods that they want.

Works Cited

Chang, Elsie, Yougang Chen, and Richard Dobbs. “China’s E-Tail Revolution.” Mckinsey Quarterly 3 (2013): 70-77. Print

Liu, Ying. “Online Purchaser Segmentation And Promotion Strategy Selection: Evidence From Chinese E-Commerce Market.” Annals Of Operations Research 233.1 (2015): 263-279. Print

Stanworth, James O., Clyde A. Warden, and Ryan Shuwei Hsu. “The Voice Of The Chinese Customer.” International Journal Of Market Research 57.3 (2015): 459- 481. Print

Xinsheng, Ke, and Sun Qi. “Study Of CSF In China’s B2C E-Commerce Based On Expert Evaluation.” Journal Of Electronic Commerce In Organizations 12.2 (2014): 31-45. Print

Yali, Shen, James G.S. Yang, and Lin Beixin. “Current Status Of Internet Commerce And Taxation Problem In China.” International Tax Journal 40.2 (2014): 17-47. Print

Zhang, Yu, Jing Bian, and Weixiang Zhu. “Trust Fraud: A Crucial Challenge For China’s E-Commerce Market.” Electronic Commerce Research & Applications 12.5 (2013): 299-308. Print

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IvyPanda. (2019, May 30). Internet Purchasing Portal to Facilitate Better Online Electronic Commerce Transactions in China. https://ivypanda.com/essays/internet-purchasing-portal-to-facilitate-better-online-electronic-commerce-transactions-in-china/

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"Internet Purchasing Portal to Facilitate Better Online Electronic Commerce Transactions in China." IvyPanda, 30 May 2019, ivypanda.com/essays/internet-purchasing-portal-to-facilitate-better-online-electronic-commerce-transactions-in-china/.

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IvyPanda. (2019) 'Internet Purchasing Portal to Facilitate Better Online Electronic Commerce Transactions in China'. 30 May.

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IvyPanda. 2019. "Internet Purchasing Portal to Facilitate Better Online Electronic Commerce Transactions in China." May 30, 2019. https://ivypanda.com/essays/internet-purchasing-portal-to-facilitate-better-online-electronic-commerce-transactions-in-china/.

1. IvyPanda. "Internet Purchasing Portal to Facilitate Better Online Electronic Commerce Transactions in China." May 30, 2019. https://ivypanda.com/essays/internet-purchasing-portal-to-facilitate-better-online-electronic-commerce-transactions-in-china/.


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IvyPanda. "Internet Purchasing Portal to Facilitate Better Online Electronic Commerce Transactions in China." May 30, 2019. https://ivypanda.com/essays/internet-purchasing-portal-to-facilitate-better-online-electronic-commerce-transactions-in-china/.

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