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Evaluation of e-commerce location and entry to China – implications on shipping and trade

Author

Listed:
  • Yulia Panova

    (Luoyang Normal University)

  • Albert Tan

    (Malaysia Institute for Supply Chain Innovation)

  • Olli-Pekka Hilmola

    (LUT University
    Beijing Jiaotong University)

  • M. H. Puvindran

    (Malaysia Institute for Supply Chain Innovation)

  • Xu Hongsheng

    (Luoyang Normal University
    Henan Key Laboratory for Big Data Processing & Analytics of Electronic Commerce)

  • Weidong Li

    (Beijing Jiaotong University)

Abstract

E-commerce is experiencing strong global growth, and leading market is nowadays that of China, whether it is evaluated from the perspective of domestic market size or cross-border volumes. In this research work further understanding and knowledge is built from Chinese market using general choice algorithm (GCA) and two real-life case studies. The outcome of GCA model shows the list of the most preferable locations for e-commerce enterprise development. Findings of this study are also compared to two case studies of e-commerce entrance to Chinese market, where one of these two is operating in an omnichannel environment. Market entrance in these two was implemented through very simplified and centralized distribution structure, and using location of Shanghai. Actual operations are either outsourced or in-house produced. Cash on delivery (COD) is still the preferred payment method in e-commerce order fulfilment. One factor being rather important in case companies was distribution prices, where courier services all over the country play an important role. For logistics in general, and sea ports, research reveals that currently dominating areas of the Pearl and Yangtze River Delta face the challenge to some extent from other places of China as favourable locations for e-commerce and consumption are also at north and western parts.

Suggested Citation

  • Yulia Panova & Albert Tan & Olli-Pekka Hilmola & M. H. Puvindran & Xu Hongsheng & Weidong Li, 2019. "Evaluation of e-commerce location and entry to China – implications on shipping and trade," Journal of Shipping and Trade, Springer, vol. 4(1), pages 1-25, December.
    • Handle: RePEc:spr:josatr:v:4:y:2019:i:1:d:10.1186_s41072-019-0045-6
    DOI: 10.1186/s41072-019-0045-6
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    References listed on IDEAS

    as
    1. Olli-Pekka Hilmola, 2018. "Supply Chain Cases," Springer Books, Springer, number 978-3-319-71658-9, September.
    2. Verhoef, Peter C. & Kannan, P.K. & Inman, J. Jeffrey, 2015. "From Multi-Channel Retailing to Omni-Channel Retailing," Journal of Retailing, Elsevier, vol. 91(2), pages 174-181.
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    4. Weidong Li & Olli-Pekka Hilmola & Yulia Panova, 2019. "Container Sea Ports and Dry Ports: Future CO 2 Emission Reduction Potential in China," Sustainability, MDPI, vol. 11(6), pages 1-21, March.
    5. Yulia Panova & Olli-Pekka Hilmola, 2018. "Evaluation of manufacturing unit location in Russia - European trade and logistics perspective," International Journal of Business Performance and Supply Chain Modelling, Inderscience Enterprises Ltd, vol. 10(1), pages 67-89.
    6. Jiang, Yonglei & Sheu, Jiuh-Biing & Peng, Zixuan & Yu, Bin, 2018. "Hinterland patterns of China Railway (CR) express in China under the Belt and Road Initiative: A preliminary analysis," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 119(C), pages 189-201.
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