3 barriers to explosive growth in e-commerce in China

by: Ezra Marbach

Analysys International in their ''Research Report Series on Internet -- E-commerce (2004)", found that the volume of e-commerce transactions in China reached 440 billion RMB in 2004.  It's expected to reach 620 billion RMB in 2005. Analysys predicts that e-commerce will become China's next big growth sector. 

Analysys International also believes that the three major barriers to the development of e-commerce in China are:

  • Logistics - weak transportation and distribution networks;
  • Payment systems - primitive banking and online payment services; and
  • Credit cards - few credit cards in circulation.