The concept of E-commerce was introduced into China in 1993, and the first online transaction in China was done in 1996. In 1998, the E-commerce demonstration project among enterprises aiming to promote informatization of the national economy was initiated. The transfer of E-commerce from concept to practice started in 1999.Being expand from B2C to C2C (online audition) and B2B (emerged at the end of 1999), E-commerce showed a sound momentum in China.

Market Scale of E-commerce in China, 2001-2006 (Unit: RMB billion)

The market scale of B2B E-commerce (being in the leading position of various E-commerce types in China) reached RMB 644.6 billion in 2005, accounting for around 95% of total E-commerce transactions.

The market of B2C E-commerce developed rapidly as well in China in 2006. Nowadays, leading B2C service providers such as dangdang.com and joyo.com are accelerating its business integration. The report gives a detailed description of B2C E-commerce in sectors of medicine, tourism, office supplies, gift collection, nutrition & healthcare and cosmetics, meanwhile summarizes their profit-making models in 2006.

In spite of a small proportion in E-commerce market, there has been a fast growth for C2C market in China in recent years. Based on the incomplete statistics, the number of registered C2C users exceeded 30 million in 2005, and C2C E-commerce transactions reached over RMB 10 billion then. By the end of 2006Q3, the total number of C2C E-commerce users had been up to 60 million. What's more, C2C E-commerce transactions reached approximately RMB 27 billion in 2006. As far as C2C is concerned, major domestic service providers include ebay.com.cn, taobao.com and paipai.com. Due to its charge-free policy, taobao.com is continuously expanding its markets while ebay.com.cn is now losing its market share due to its charging policy. Noticeably, the rising paipai.com (affiliated to Tencent), owing to its charge-free policy and huge number of QQ users, has maintained a rapid growth since its operation in Sep 2005. By Sep 12th, 2006, online registered users had surpassed 25 million and the quantity of online commodities over 5 million.

The development trends of E-commerce in China are presented below:

Firstly, the depth of E-commerce will be further explored. Core business flow and the management of client relations will be extended to the Internet, making products and services more accessible to users. Enterprises will foster new value chains and combine the relative parties into a strategic alliance for common benefits.

Secondly, China E-commerce will confront severe challenges. As the int'l E-commerce environment is gradually consummated, the global orientation of Chinese E-commerce enterprises is the inevitable for expanding foreign trade and economic cooperation, adapting to economic globalization and improving the competitive of Chinese enterprises. Meanwhile, overseas E-commerce giants are also marching into China successively. 

Thirdly, merger will sweep E-commerce websites. Homogenous merger comes the first. Currently, numerous websites are repeatedly constructed, which is featured by similar orientation and business. In the fierce competition for limited resources, only several top websites could be the winners. In additional, some leading E-commerce enterprises, which are advantageous in resources, brands and clients, but still lag far behind well-known overseas E-commerce enterprises, should have to form strategic alliance by complementary merger. To cooperate strategically among different types of websites will be the future result because individualization and profession are the two trends of E-commerce, while customers' demands are various. 

Lastly, E-commerce by industry will be the mainstream of next-generation e-commerce development. The 1st-generation E-commerce is merely focused on content, and the 2nd-generation on comprehensive E-commerce. In comparison, the next-generation industrial E-commerce will closely integrate with value-added content and business platform, bringing the advantages in information services into full play.

2. Development of E-commerce  
2.1 Development of Global E-commerce  
2.2 Development of China's E-commerce  
2.2.1 General Status  
2.2.2 Existing Problems  

3. Development Environment of China's E-commerce  
3.1 Development of China's Internet Infrastructure  
3.2 Payment of China's E-commerce  
3.3 Overview of China's Logistic & Distribution System  
3.4 Survey on Chinese Netizens' Online Purchase  

4. Research on Typical B2B Websites  
4.1 alibaba.com.cn  
4.1.1 Brief Introduction 
4.1.2 Operation Status  
4.1.3 Marketing Methods  
4.1.4 E-commerce Services  
4.2 hc360.com  
4.2.1 Brief Introduction 
4.2.2 Operation status  
4.2.3 Marketing methods  
4.2.4 Payment Options  
4.3 mymai.com  
4.3.1 Brief Introduction  
4.3.2 Operation Status  
4.3.3 Marketing Methods  
4.3.4 Services  

5. Research on C2C websites  
5.1 ebay.com.cn  
5.1.1 Brief Introduction 
5.1.2 Marketing Strategy
5.1.3 Payment Tools 
5.1.4 Partners  
5.2 taobao.com  
5.2.1 Brief Introduction  
5.2.2 Marketing Strategy  
5.2.3 Payment Tools   
5.2.4 Partners  
5.3 paipai.com
5.3.1 Brief Introduction
5.3.2 Marketing Strategy  
5.3.3 Payment Tools 
5.3.4 Partners  

6. Research on China's B2C E-commerce by Industry  
6.1 China's Medical Industry  
6.1.1 E-commerce Development  
6.1.2 Analysis of Typical Websites  
6.1.3 Summary of the E-commerce Profit-making Model  
6.2 China's Tourism Industry  
6.2.1 E-commerce Development  
6.2.2 Analysis of Typical Websites  
6.2.3 Summary of the E-commerce Profit-making Model  
6.3 China's Office supplies Industry  
6.3.1 E-commerce Development  
6.3.2 Analysis of Typical Websites  
6.3.3 Summary of the E-Commerce Profit-making Model   
6.4 China's Books/Audio/Video Industry  
6.4.1 E-commerce Development  
6.4.2 Analysis of Typical Websites  
6.4.3 Summary of the E-commerce Profit-making Model 
6.5 China's Toy Industry  
6.5.1 E-commerce Development  
6.5.2 Analysis of Typical Websites  
6.5.3 Summary of the E-commerce Profit-making Model  
6.6 China's Gift Collection Industry  
6.6.1 E-commerce Development  
6.6.2 Analysis of Typical Websites  
6.6.3 Summary of the E-commerce Profit-making Model   
6.7 China's Nutrition and Healthcare Industry  
6.7.1 E-commerce Development  
6.7.2 Analysis of Typical Websites  
6.7.3 Summary of the E-commerce Profit-making Model 
6.8 China's Cosmetic Industry  
6.8.1 E-commerce Development  
6.8.2 Analysis of Typical Websites  
6.8.3 Summary of the E-commerce Profit-making Model  
6.9 China's Catering Industry  
6.9.1 E-commerce Development 
6.9.2 Analysis of Typical Websites  
6.9.3 Summary of the E-commerce Profit-making Model  
6.10 China's Garments Industry  
6.10.1 E-commerce Development  
6.10.2 Analysis of Typical Websites  
6.10.3 Summary of the E-commerce Profit-making Model 

7. Viewpoints and Conclusion