Chinese merchants are moving into the global market via cross-border e-commerce, and their expansion into this segment will grow at a double-digit pace in the coming years, a study has found.

Argentina and Israel were the two fastest-growing markets for online retail exports in China last year, according to global e-commerce vendor eBay Inc. Shipments to Argentina rose 130 percent, while those to Israel were up 78 percent. Sales to Norway (the third-fastest-growing market) expanded 69 percent.

Among the top 15 emerging overseas markets were Russia and Brazil, thanks to a jump in the number of new online shoppers, said John Lin, vice-president of eBay.

"While e-commerce penetration rates remain low in regions such as Central and Eastern Europe, Latin America and the Middle East, dramatic breakthroughs are expected in the near future," he said. Last year, $83 billion in global transactions were completed via eBay. Lin didn't say what China's share was, but he noted that the growth rate was "robust".

Global business-to-consumer online sales are set to grow 20.1 percent this year, largely driven by developing markets, according to New York-based consultancy eMarketer Inc.

A wider range of products are being offered by Chinese vendors, supported by improved logistics facilities and an expansion of overseas warehouses.

"We've started to see people selling bulky products online. In general, heavier items that are transported through overseas warehouses tend to be priced two to three times higher than lighter ones, which lead to bigger margins," Lin said.

Electronics, fashion, and home and gardening items are the best-selling categories for Chinese exporters, the study found.

"Overseas warehouses have enabled retailers in China to ship locally, accelerate sales and increase their click-thru rates," said Li Lie, a Shanghai-based eBay merchant who specializes in vehicle parts.

The improved logistics infrastructure allows Chinese retailers to export large and heavy items and complements local product returns and replacements, he noted.

Mobile technology is driving market demand and providing opportunities for cross-border retailers. About 40 percent of eBay's gross merchandise volume in the fourth quarter of 2013 was generated via mobile devices.

Lin said that omnichannel commerce, which guarantees online browsing, seamless logistics and multiple screens for purchase, will enable consumers to shop anywhere at any time.

Alibaba Group Holding Ltd, China's e-commerce giant, aims to take a larger share of cross-border transactions through a system upgrade that will provide better matches between international merchants and buyers, said Wu Minzhi, president of the company's international business.

It collects data from overseas buyers to locate the right Chinese suppliers through AliSourcePro, a new initiative that shares key business information and enhances transaction efficiency by 28 percent, Wu said.

Lin said he welcomes more competitors, but eBay will leverage its global presence to better satisfy consumers' needs.

A MasterCard survey in March found that Chinese customers are the most frequent online shoppers in the Asia-Pacific region, with close to 97.8 percent of Chinese respondents having made at least one online purchase in the previous three months.

hewei@chinadaily.com.cn

(China Daily USA 04/02/2014 page13)