Developing Shopping Online in China
Thesis: The reasons why shopping online has become an important role in China are the development of technology, the characteristics of shopping and the improvement of people’s lifestyle.
I. The development of new technology
A. The Internet communication skills
B. Computer program systems
1. The feedback-based reputation system
2. The E-payment system
II. The characteristics of shopping online
A. Low-price strategy
B. Diversity of products
III. Some changes in people’s lifestyle
A. Logistics development makes life more convenient
B. People prefer to stay at home because of the Internet
Developing Shopping Online in China
Have you had a good experience of shopping online? It might have been common in the US; however, the only approach for Chinese to buy clothes or food was to go to the mall or supermarket ten years ago. Shopping online has become more and more popular in China and has been adopted as a common way to shop. A report, conducted by iResearch, an online market research company, said that the first year’s trade volume of Chinese online market soared 95.8% (as cited in Ding, 2009, ¶2). People in China now prefer to click to the website, select products and make sure to purchase. There are two common types of e-commerce websites in China: B2C and C2C. B2C presents business-to-consumer, and C2C stands for consumer-to-consumer. A few e-commerce websites, such as Dangdang (www.dangdang.com.cn, the largest and most popular B2C website in China), and Taobao (www.taobao.com, the largest C2C website in China, owned by Alibaba.com), “have won great success and established good reputation among online consumers”(Lu, Zhou& Bin, 2007, ¶1). The reasons that shopping online has been developed and improved in such a high speed in China are the development of technology, the characteristics of shopping, and the improvement of people’s lifestyle. The first reason why shopping online has become a significant role in China is the development of the technology, such as network communication skills, e-payment system and the feedback-based reputation system. The Internet has had widespread effects on Chinese since it was first introduced into China in 1995. The Internet, a recent innovation, has become a significant intermediary for not only communication but also commerce. Compared with traditional shopping approaches, the features of the Internet will be considered by buyers, and people will think whether the characteristics of the Internet are preferred when shopping online (Joseph& Dong, 2006, ¶6). The three steps when consumers are shopping in the Internet are to click their mouse, search for what they want to buy, and make sure to purchase, while they even don’t have to talk to sellers. The convenience of the Internet leads shopping online to be the first choice. Moreover, most consumers are concerned with computer program systems related to payment safety or product reputation when shopping online. Such computer program systems have been set up to ensure consumers’ profits. A lot of online shopping websites, such as eBay.com and Taobao.com use feedback-based reputation system, in which the sellers’ and buyers’ reputation and credit will be recorded and marked based on transaction in the past. It means a lot in online C2C market, and the seller will be trusted if s/he has a good reputation, which brings about good sales (Bo, Zhangxi, & Bingjia, 2010, ¶20). Nelson (1970) sorted products into experience and search goods. People want to try the quality of experience products right before they buy the products, while people have to see search products through some information provided online. In other words, the products bought online are search goods. People have...