As more individuals are relying on the use of the internet, e-commerce is gaining more relevance globally. Factually, lots of individuals prefer buying products and services online rather than visiting brick-and-mortar stores. Given this, China is the topmost market that is servicing the needs of lots of people that are into e-commerce. Without a doubt, the Asian country is the leader in terms of e-commerce cross-border volumes as well as domestic market size. As of 2018, China’s e-commerce market was estimated to be worth more than $1.15 trillion; hence, it is the #1 e-commerce nation in the world. Currently, it is the choicest option for lots of individuals and groups that are looking for ways to ship products required for their e-commerce business. It is noteworthy that China’s e-commerce market is expected to even grow further in the coming years.
Despite the unprecedented growth and strength of e-commerce in China, it is undeniable that there is a significant relationship between online and offline shopping. This is especially true when you are considering the selection of location. For instance, it has been discovered that the delivery time can be reduced to 5 days if the appropriate location is selected for bonded warehouses. However, if the direct shipping model is used, it will take around 7 to 30 days for similar goods to be delivered. Like location, entry to China can also have a notable impact on e-commerce in the country and around the world.
Therefore, when a company is interested in shipping from China to USA, it is crucial to carefully assess the e-commerce location and entry to guarantee safe and on time delivery of goods.
If you are looking for ways to invest in e-commerce and want to use China as your source, you must never overlook the importance of location and entry. Nonetheless, certain factors are known to play a key role in choosing the best location. These factors include:
Each location has a varying number of cross-border e-commerce zones. However, those with higher numbers tend to be more suitable for e-commerce businesses as they often make transactions smoother and faster. So it is not strange that areas with a higher number of cross-border e-commerce zones will be preferred by many businesses. In addition, this factor can also affect the countries around China.
Wage level is also usually considered when choosing an e-commerce location. This is because wage level will affect the overall cost of productions. Therefore, e-commerce businesses will likely gain more profit if using an e-commerce location with low wage level.
How much does it cost to move goods from a particular location within or outside the country? This is an essential question that must be answered when selecting an e-commerce location and entry to China. Generally, some locations are known to have affordable transport tariffs due to their positioning, government regulations, and lots more. Expectedly, the more affordable the transport tariffs, the better for an e-commerce company. So, considering its importance, transport tariffs must be duly considered.
Duties and taxes are not the same throughout China. Therefore, you can expect duties and taxes to be higher in some places and lower in others. In most cases, the volume of trades and government policies are the major factors that determine the duties and taxes of e-commerce businesses. Regardless of the duties and taxes, you can rest assured that they will affect the cost of China to USA shipping as well as the overall cost of the products.
In simple words, labour productivity is the amount of products that workers can manufacture within a specified time. This factor is instrumental in determining the overall productivity of a company and, as such, affect the profitability of e-commerce businesses. A location with higher labour productivity will help e-commerce businesses to maximize their profits. Besides, it can also reduce the days of production of goods and services; consequently, reducing the delivery time of such products.
Although many locations in China have good internet connectivity, some locations are known to be better than the others. With a good internet connection, it is usually easier for foreign businesses to communicate seamlessly with China-based companies. Therefore, locations with a good internet connection can be a better choice.
Business climate refers to the professional and economic conditions around a group of businesses in a particular sector or environment. In general, the business climate is influenced by political or government attitudes concerning the businesses, their financial stability, structure and support for labour organizations, and lots more. If the business climate in a location is favourable to a particular business type, it will be the perfect place for running e-commerce in China.
For instance, if a region is trying to encourage people to buy computer-related products from their local manufacturers, such location will probably have favourable political and government policies. As a result of this, it will be a great place for e-commerce businesses that are into computer accessories.
Access to natural resources is an essential element that affects e-commerce location and entry to China. If a location has reliable access to natural resources and the infrastructure for using the resources, it will be the perfect place for e-commerce businesses. This is because access to natural resources may reduce the cost of shipping from China to USA or another country.
Apart from the factors above, the unemployment rate, number of corporate businesses of retail trade and political stability are also important when choosing an e-commerce location and entry to China.
According to an analysis, Beijing, Guangdong, Shandong, Jiangsu, Shanghai, Zhejiang, Sichuan, Fujian, Hubei, and Shandong are some of the best e-commerce locations and entries in the country. During the analysis, many of these favoured locations didn’t have outstanding labour productivity or low wages, but their logistics infrastructure, internet development, and retail trade were excellent.
As clearly described above, e-commerce location and entry to China involves a lot of dynamic factors that can have varying impacts on the success of businesses. Therefore, businesses must assess these factors when shipping from China to the United States of America or other countries.
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