A1 Journal article (refereed), original research

Evaluation of e-commerce location and entry to China – implications on shipping and trade

Open Access publication

LUT Authors / Editors

Publication Details
Authors: Panova Yulia, Tan Albert, Hilmola Olli-Pekka, Puvindran M. H., Hongsheng Xu, Li Weidong
Publisher: SpringerOpen
Publication year: 2019
Language: English
Related Journal or Series Information: Journal of Shipping and Trade
Volume number: 4
ISSN: 2364-4575
eISSN: 2364-4575
JUFO-Level of this publication: 1
Open Access: Open Access publication


E-commerce is experiencing strong global growth, and leading market is
nowadays that of China, whether it is evaluated from the perspective of
domestic market size or cross-border volumes. In this research work
further understanding and knowledge is built from Chinese market using
general choice algorithm (GCA) and two real-life case studies. The
outcome of GCA model shows the list of the most preferable locations for
e-commerce enterprise development. Findings of this study are also
compared to two case studies of e-commerce entrance to Chinese market,
where one of these two is operating in an omnichannel environment.
Market entrance in these two was implemented through very simplified and
centralized distribution structure, and using location of Shanghai.
Actual operations are either outsourced or in-house produced. Cash on
delivery (COD) is still the preferred payment method in e-commerce order
fulfilment. One factor being rather important in case companies was
distribution prices, where courier services all over the country play an
important role. For logistics in general, and sea ports, research
reveals that currently dominating areas of the Pearl and Yangtze River
Delta face the challenge to some extent from other places of China as
favourable locations for e-commerce and consumption are also at north
and western parts.

Last updated on 2020-20-03 at 10:03