GMV of China's Online Shopping Market Hit 8.0 Tn Yuan in 2018

Source:iResearch March 22,20192:34 PM

In 2018, GMV of China’s online shopping market hit 8.0 trillion Yuan, increasing 28.3% compared with 2017, and its share in total retail sales of kept expanding as well. Although online shopping GMV presents a continuous rise, it is obvious that the customer acquisition cost for major e-commerce platforms also climb up at the meantime. Thus, many e-commerce companies are actively developing new businesses to attract more consumers. On the one hand, they try to catch people’s attention by applying SNS-based and content-based marketing as well as content-based customized interface. On the other hand, the e-commerce companies explore offline traffic entries that cover full product categories, all channels and all scenarios.

In 2018, share of B2C in China’s online shopping market was 56.2%, declining a little compared with the figure 56.5% in 2017 due to the fast development of SNS-based C2C platforms like Pinduoduo. As the E-Commerce Law that specified e-commerce operators’ obligation to pay taxes came into power, B2C e-commerce platforms like Tmall and JD as well as most of the merchants on the platforms have completed taxation registration and paid tax regularly. 

However, merchants on C2C platforms like Taobao and Pingduoduo are mostly natural people. They are not required to register at the governmental authorities according to the Online Trading Regulations published in 2014, thus platforms with such kind of merchants may be greatly influenced by the new E-Ccommerce Law. What’s more, consumers’ demands for product quality and services will improve under the background of the consumption upgrading, Increasing brand awareness and expanding scale will be the main trend in the near future among e-commerce companies and merchants. 

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