1 E commerceOnlinePayment AAAAConsulting 2 Content Projectoutline 3E commercedevelopmentinChina 4 25Methodology 26 27Keyfindings 28 77Availablepaymentmethods 29 38MainbanksinvolvedinE commerce 39 43Onlinepaymentprocessflow 44 52Differenceinthreecities 53 71Marketsurveyresult 72 77Analysis Recommendation 78 82Issue Concern 83 85 3 ProjectOutline E commercedevelopmentMethodologyKeyfindingsAnalysis RecommendationIssue Concern 4 E commerceDevelopmentinChina CurrentStatusKeyIssuesFutureDevelopment 5 E commerceDevelopmentinChina E commerceDevelopmentProcessinChina Source Desktop 1996 StudiedE commercedevelopmentinChina1996 12 StudiedE bankservicemodel1997 2 OrganizeddevelopingteamofE bankservicesystem1997 7 FormulatedE bankservicesystem includingprovidingonlineinquiryofcooperatefinanceandcreditcard onlinedeclareofbalanceofinternationalpayment1998 1 OrganizedleaderteamofE bankservicesystembyheadofficeofbank1998 3 FirstonlinetransactioncompletedbyGreatwallcreditcard1999 1 EstablishedE bankdepartmenttocoordinateE commercedevelopment1999 6 Providedmanyonlinepaymentmethods forexample Easypaydevelopedthefirstcompleteonlinepaymentsystem BankofChinasetuppaymentgatewayofSETandCACenter1999 9 SoftwaredevelopmentcenterofBOCsetupE commercelaboratory 6 E commerceDevelopmentinChina Source Desktop E commercecurrentcondition E commercedevelopmentisstillinthegrowthstageandexperiencedrapiddevelopmentin1999 In1999 totalamountofonlinetransactionisRMB5 5manditisestimatedthatthetotalamountofonlinetransactionwillreachRMB3 5bin2000ThelatestresearchpresentsthatinternetusersinChinahasexceeded17mByMarch2000 thereareabout1100Websites 7 E commerceStructure E commerceDevelopmentinChina Note CAwillverifyidentityofallparticipantsduringthecourseoftransaction 8 E commerceDevelopmentinChina 1 User browsingWebsite formulatingorder deliveryorder paymentdatatoWebsite2 3 Website confirmingorder conveyingpaymentdatatopaymentgateway4 Paymentgateway deliverypaymentdatatocardissuer sbank5 Cardissuer sbank verifyingpaymentvalidity transferringmoneytoclearingcenter6 Clearingcenter acceptingmoney notifyingcollectingbank7 8 Collectingbank collectingmoney notifyingWebsite9 10 Website processingdata informingdistributortoarrangingdelivery11 12 Distributor deliverproducts 9 BusinessModel B2BModel1 InformationPlatform E commerceDevelopmentinChina Function Websiteissuingsupply demandinformationtobuyerandsellerNote SuchkindofWebsiteonlyprovideverybasiccommunicationservicebetweensupplierandbuyerExample 10 E commerceDevelopmentinChina BusinessModel B2BModel2 OnlineShoppingCity Function WebsiteprovidingbusinesswithE commerceplatform helpingbusinesstodeveloponlinetransactionNote ThemajorityofparticipantsarebusinessprovidingconsumptionproductsTheWebsiteissimilartotraditionalretailerrentingcounterExample 11 E commerceDevelopmentinChina BusinessModel B2BModel3 BusinessownWebsite Function DistributionWebsite businessthroughitsWebsitetodeveloptraditionalofflinedistributionactivities providingonlineservicetoitscustomersPurchasingWebsite businessbuyingonlinebyitsownWebsiteExample 12 E commerceDevelopmentinChina BusinessModel B2BModel4 CompetitivePurchasingPlatform Function Websitecombiningbusinessproductandserviceinformationtoprovidecompetitivepurchasingservice Purchasingprocess Buyer issuinginquiry fillingoutinquirybillWebsite transferringinquirytosuppliersSuppliers givingquotationandreturningittobuyerseparatelyBuyer choosingsuitablesupplierNote ComparingwithInformationPlatform businesscanObtainmoreeffectiveservicefromsuchmodelForexample gainingmorebusinessopportunities reducingtransactiontime loweringoperatingcostExample 13 E commerceDevelopmentinChina BusinessModel B2BModel5 Product ServiceAgentPlatform Function BusinesswhohavebecomeagentsofcertainproductorservicedevelopwholesaleonlineNote AgentonlinedeveloptraditionalofflinewholesaleactivitiesthroughInternetExample 14 E commerceDevelopmentinChina BusinessModel B2BModel6 TechnologySupportPlatform Function Websiteonlineprovidingtechnologysolutiontobusiness rangingfromInternettosoftwareNote TherapiddevelopmentofE commercebringingagreatperspectiveforInternettechnologyandconsultingserviceExample 15 E commerceDevelopmentinChina BusinessModel B2CModel1 OnlineShopping Forexample CompetitivePurchasing DealingwithsupplierwhoofferscompetitivepriceFoxexample 16 E commerceDevelopmentinChina BusinessModel B2CModel2 IndividualQuotation Duringthiskindoftransaction supplierwilldealwithconsumerwhogivethehighestoffer sopriceflowsfromlowtohighinthismodelForexample GroupQuotation Duringthiskindoftransaction todealwithallconsumers supplierwillgiveCheaperoffer sopriceflowsfromhightolowingroupquotationForexample 17 E commerceDevelopmentinChina BusinessModel B2CModel IndividualE bank Expenseaccount forexample gasbill mobilephonefeesChecking transferringaccountOnlineshoppingpaymentForexample 18 BasicE commerceTransactionProcess E commerceDevelopmentinChina Notify Consumer Creditcardorganization Bank Merchant CACenter Order Delivery Transfer Transfe