China is slowly becoming an e-commerce rock god as their role in the online shopping universe grows. The Wall Street Journal reported that China’s total online sales are expected to eclipse those of the U.S. in coming years, rising to $356.1 billion in 2016 from $169.4 billion last year. According to Forrester Research, U.S. online retail sales are forecast to reach $327 billion from $226 billion over the same period. With that said, to conjure up an image of a man on a scooter being the primary form of delivery for e-commerce goods is laughable. For some of these rising Chinese dot-coms, a scooter delivery service is a stark contrast to the savvy we often attribute to this dominating economic force.
China is slowly becoming an e-commerce rock god as their role in the online shopping universe grows. The Wall Street Journal reported that China’s total online sales are expected to eclipse those of the U.S. in coming years, rising to $356.1 billion in 2016 from $169.4 billion last year. According to Forrester Research, U.S. online retail sales are forecast to reach $327 billion from $226 billion over the same period. With that said, to conjure up an image of a man on a scooter being the primary form of delivery for e-commerce goods is laughable. For some of these rising Chinese dot-coms, a scooter delivery service is a stark contrast to the savvy we often attribute to this dominating economic force.
While e-commerce in China is on the rise, the country lacks the proper infrastructure to deliver the goods to its broad consumer base. Because of the lack of proper logistical planning the country has seen a surge of courier deliveries utilizing scooters to enable the delivery of electronically purchased goods. Initially, It is a puzzling image, as we tend to think of China as technology giant, leader in the development of technology and an economic force to be reckoned with.
This delivery problem China faces is a cautionary tale to companies seeking to move into e-commerce. While companies in the U.S. can rely on the efficiency of parcel delivery services like Fed-Ex and UPS, e-commerce is not as simple as creating a website. As a business consultant I am astounded by the amount of companies that take their e-commerce strategy as far as creating the website and no further. There is often no thought to order fulfillment, warehousing, inventory management, etc. Even the simple act of packing boxes is overlooked.
So how can an e-commerce site avoid the pitfalls of owning and operating such a service?
- E-commerce doesn’t stop after the site is built
It seems that most e-commerce entrepreneurs focus 90% of their effort on the DURING – what happens DURING the website visit, but completely over look the before and the after experience for the consumer and their business.
- If your site is left unseen, does it still exist?
Ask yourself how will people find out about your website – how do you get them to your doorstep? How much can you invest in promoting or getting people to the website?
- If you got it, flaunt it.
Remember the need for the promotion – If you build it, they will not come unless you tell them to. Secondly what happens – AFTER an order is placed? Once you have won their business how do you fulfill not only the brand promise but their order?
The opportunities afforded by technology are endless, but the need for proper business planning, and real world logistics and operations are fundamental to harnessing these opportunities. For those diving into the e-commerce world, take a moment to not only walk through the online experience but the entire business lifecycle and user experience. Building a website is a solitary channel or the doorway to your offering – it is not your entire business plan. Anyone can build a website, remember to build a business.
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