Factors that impact on the success of E-commerce for B2C SMEs in China

Abstract

Science and technology not only change life, but also change business models, with E-commerce being the best proof of this in recent years. More and more businesses began to develop businesses through E-commerce and emerging technologies also made a competitive business environment more changeable and challenged. It is therefore important to deliver an effective presence for businesses.

In China, E-commerce has developed quite fast in recent years. However, Small and medium-sized enterprises (SMEs) play a significant part in China’s economy. Once developing businesses on E-commerce, it is important to know, for Business to Consumer (B2C) SME owners or managers, how to manage businesses through E- commerce. This requires more knowledge, skill or strategies than traditional businesses. This research focuses on the B2C SMEs that have already implemented E-commerce for their businesses. The purpose of this research is to identity factors that impact the success of E-commerce performance for B2C SMEs in China. The study aims to provide factors that can lead to successful E-commerce implementation that can provide some knowledge and guidance for the owners of B2C SMEs in China. In this research, qualitative data was collected through in depth face-to-face interviews with 15 owners of B2C SMEs in China, who have already adopted E- commerce.

Based on the results of this research, it can be concluded that B2C SMEs in China all recognized the current importance of E-commerce in China; are willing to continue to develop businesses through E-commerce in the future; and are trying their best to perform E-commerce, including identifying and determining success factors and strategies that suit their businesses. These businesses all have a basic understanding of E-commerce, but there are still many areas for them to improve. Due to the specific E- commerce environment in China, all B2C E-commerce SMEs rely heavily on third- party platforms and on third-party logistics. All SMEs still face limitations for developing E-commerce. The study therefore considered all the challenges noted above and developed factors that could guide B2C SMEs to successfully perform their business operations through E-commerce. Limitations of this study and directions for future research are also discussed