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Chapter 1 Brief

introduction of e-
commerce
Course Teacher : Menghao Zhang
联系方式: zhangmhyy@163.com
The problems to be solved in the first
问题思考 lesson

What is E-Commerce?

What will you learn from this course?

Why do you need to study e-commerce management?

How do you learn this course?

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1 、 2018 Tmall double 11 global carnival

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1 、 2018 Tmall double 11 global carniva

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1 、 2018 Tmall double 11 global carnival

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1 、 2018 Tmall double 11 global carnival

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电子商务的诸多定义
The definitions of e-commerce

The Chinese e-commerce blue book: e-commerce refers to


business transactions done through the internet.
Transactions can be divided into commodities trading and
service transactions. Transactions are the translocations of
currencies and commodities. Transactions should be
supported by information flows, capital flows and logistics.

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电子商务的诸多定义
The definitions of e-commerce

IBM definition: The electronic commerce web +2 IT. The


emphasis of It is in the commercial application of network
computing environment, is the buyer, seller, manufacturer
and its partners in the internet(internet), intranet and
extranet combined application.

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电子商务的诸多定义
The definitions of e-commerce

The US government : e-commerce refers to the various


business activities through the internet. Include:
advertising, transaction, payment, service and other
activities, the global electronic commerce will be involved in
countires around the world.

Scholar definition: Amercian scholars Kalakota and


Whiston made the definition in their book “frontiers of e-
commerce”. Broadly speaking, e-commerce is a modern
business method. This method increases the service
transmission speed, satisfies the government organization,
manufacturers and consumers' demands to reduce costs by
improving the quality of products and services.
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电子商务的定义
The definition of e-commerce in this course

E-commerce is the process in which enterprise uses the Internet


to create, manage, and expand the activities of the business
relationship. (Broad definition, E-business)

Specifically refers to the use of the Internet to conduct


transactions or transactions directly related activities. (Narrow
definition, E-commerce)

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1.2 the generation and development
of e-commerce

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1.2.1 the generation of e-commerce

Electronic commerce grows along with the


development of the Internet.
E-commerce’s development goes through five
stages:
(1) E-mail phase
(2) information release stage
(3) EC (Electronic Commerce)
(4) the whole stage of electronic commerce
(5) wisdom stage of electronic commerce
1.2.2 positive factors to promote the development
of e-commerce
(1)the popularity of computers and handheld intelligent
terminal and the rapid development of the Internet

(2) the rapid development and widely usage of Internet finance

(3)Safety electronic trading agreement

(4)the support of governments

(5)The improvement of the policy and regulations

(6) the huge potentials of e-commerce


1.2.3 development history of e-commerce in
China
(1) the start period (1990-1993), the introduction of (EDI)

(2) the rudiment period (1993-1997) (3 gold engineering)

(3) the development period (1998-2000) (e-commerce sites


rise)

(4) stability (2000-2009), a large number of companies


involved in

(5) mature period (2010 -), become the new commercial basis)
1 ) The advent of the era of the Internet

Born in 1969, the predecessor of the Internet ARPANET, four years


after it began worldwide networking across the Atlantic.In 1986, the
national science foundation, using TCP/IP communications protocol,
the Internet was born.In 1991, the Internet WWW (World Wide
Web) made its debut of public service, the World Wide Web in an
unprecedented way, made great promotion on the Internet, allowing
the use of the Internet to spread.

A moment of change history: on April 20,


1994, a special international 64 k line of China has been connected to
Chinese academy of sciences, international
Internet connection. China is fully the Internet for 22 years 。
connected to the Internet, becoming the
77th country to access the Internet.
2) the scale of Internet development in China

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2) the scale of Internet development in China

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2) the scale of Internet development in China

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2) the scale of Internet development in China

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2) the scale of Internet development in China

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Phubber can be seen in Peking University
freshmen's military traininga

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2) the scale of Internet development in China

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2) the scale of Internet development in China

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2) the scale of Internet development in China

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族 2) the scale of Internet development in China

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2) the scale of Internet development in China

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2) the scale of Internet development in China

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2) the scale of Internet development in China

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2) the scale of Internet development in China

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2) the scale of Internet development in China

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3) change the business form and model

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style
3) change the business form and model
Which companies disappeared
in the Internet age?
Who will be next?

......
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Case 1: reconstruction of media industry chain

The reconstruction of information aggregation

and distribution: the reconstruction of traditional

media industry by portal websites, baidu, weibo and

WeChat on the information level.

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Case 1: reconstruction of media industry chain

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Case 2: Taobao restructured the traditional retail
industry chain

Taobao has cut down on traditional retailers who must


have physical stores to sell to others, saving on the soaring
rents and labor costs of recent years. Even if you can already
sell well on Taobao, then go back and open a physical store.
In this way, it reverses the order of the industrial chain
nodes, which is difficult to achieve in the non-Internet era.

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Case 3: refactoring the service value chain

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4) a new business foundation is formed

Strong breakthroughs in cloud


computing and big data
infrastructure

Rapid penetration of Internet and terminal
Internet of things infrastructure 、 APP

New
Intelligent terminal, APP infrastructure
application rise suddenly

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3. Interpretation of e-commerce
support policies
Release time Release department Cross-border e-commerce Key points
policies
To adjust the fees and categories of export
2013 the State Council Several opinions on promoting
inspections, to increase support for export tax
the steady growth, structural rebates, to promote RMB settlement for cross-border
trade, to improve trade facilitation and trade
adjustment of import and
methods, and to expand imports actively, such as
export issued by state council encouraging advanced equipment and technology,
optimizing the structure, and phasing out outdated
( [2013] no.83 of State
production capacity.
Council)

To determine the e-commerce export business


2013 the State Council The general office of the state
entities; to establish e-commerce new export customs
council forwarded the notice supervision mode; to set up the electronic commerce
export inspection regulation mode; to support export
of the ministry of commerce
enterprise normal accept payment settlement of
and other departments on exchange; to encourage Banks and paying agencies
to provide cross-border e-commerce payment
implementing policies and
service, to adapt to e-commerce sales tax policy; and
opinions on supporting cross- to set up the electronic commerce export credit
system, etc.
border e-commerce retail
export ([2013] no. 89 of State
Council)
Accelerate the reform of the foreign trade
2014 the State Several Opinions of the
management system. Actively support the
Council General Office of the import of advanced technology equipment
and key components such as digital and
State Council on
intelligent. Support the export of products
Supporting the Stable with intellectual property, brand,
marketing network, high technology
Growth of Foreign
content, high added value and high
Trade ( [2014] No. 19 efficiency. Implement zero tax rate or tax
exemption for service exports. Encourage
of State Council)
enterprises to adopt overseas mergers and
acquisitions to invest abroad. Promote the
pilot of regional customs clearance and
implement paperless customs clearance.
Promote RMB settlement of cross-border
trade. Increase export credit insurance
support.
Adjust the Catalogue of Encouragement
2014 the State Several Opinions of the
Import Technologies and Products.
Council General Office of the Maintain the stability of the import of
resource products. Reasonably increase
State Council on
the import of general consumer goods.
Strengthening Imports Vigorously develop service trade imports.
Further improve the level of import trade
( [2014] No. 49 of State
facilitation. Vigorously develop import
Reduce barriers to entry and comprehensively clean
2015 the State Council State Council's Opinions on
up existing pre-approval issues in the e-commerce
Vigorously Developing E- space. Improve the "single window" cross-border e-
commerce goods rework and return customs
Commerce to Accelerate the
clearance process to improve customs clearance
New Motive Force of the efficiency. Establish a cross-border e-commerce and
related logistics enterprise integrity classification
Economy ([2015] No. 24 of
management system. Introduce standardized
State Council) management policies for overseas listing. Establish
overseas marketing channels and create own brands.
2015 the State Council The State Council's guidance “Internet +” service for the benefit of the
on actively promoting the people;innovate the government's networked
"Internet +" actions ([2015] management and services. Develop new services that
No. 40 of State Council) are convenient for the people. "Internet +" e-
commerce. Encourage the development of various
cross-border e-commerce service providers, improve
the cross-border logistics system, and expand global
economic and trade cooperation. Promote the
construction of a single-window integrated service
system for key links such as cross-border e-
commerce customs clearance, inspection and
quarantine, and settlement of foreign exchange.
Innovate cross-border rights and interests protection
mechanism, and use the means of conformity
2016 the State Council Several Opinions of the State Promote industrial integration and upgrading; plan the
Council on Promoting the overseas cooperation of processing trade; international
Innovative Development of cooperation mechanism for good processing trade;
Processing Trade (Guo Fa deepen the reform of administrative examination and
[2016] No. 4 of State Council) approval of processing trade; optimize the supervision
method; accelerate the integration and optimization of
special customs supervision areas.

2016 the State Council Reply of the State Council on Adapt to local conditions, highlight local
agreeing to establish a cross- characteristics and advantages, and focus on cross-
border e-commerce border e-commerce business-to-business (B2B)-
comprehensive pilot zone in 12 related aspects of technical standards, business
cities including Tianjin processes, regulatory models and information
(National Letter [2016] No. 17) construction, promote cross-border e-commerce health
across the country develop more experience , release
market vitality with a new model that is more
convenient and efficient, attract large and medium-
sized enterprises to gather, promote new business
growth, promote mass entrepreneurship, increase
employment, support foreign trade superior and
superior.
2017 the State Notice of the Adjust import tariffs and reduce
Council Customs Tariff import tariffs on some consumer
Commission of the goods by tentative tax rate.
State Council on
Adjusting Import
Tariffs of Certain
Consumer Goods

2018 National E-commerce Law Standardize the industry, standardize


People's taxpayers, and protect consumer
Congress rights.
Notice of the General Office of the Promote the development of cross-
2012 Ministry of Commerce
Ministry of Commerce on border e-commerce, expand overseas
releasing the "Internet + markets; Accelerate the construction
Circulation" action plan of e-commerce overseas marketing
channels, help e-commerce
enterprises to “go global”; Accelerate
the coordinated development of
express logistics and e-commerce;
Further improve the e-commerce
policy and regulations environment;
Participate and lead e-commerce
international rules and so on.

The rules of enterprise tax rebate,


2013 Ministry of Finance, Notice of the Ministry of Finance
value-added tax, consumption tax
State Administration and the State Administration of exemption policy conditions; The
qualification of refund (exemption)
of Taxation Taxation on the taxation policy
tax ; Collect forex of export goods
for Cross-border E-Commerce within validity of the tax refund
(exemption) tax reporting; Tax
Retail Exports (Cai Shui [2013]
registration; Legal and valid receipt
No. 96) certificate; Export Goods declaration
form, etc.
201 State Administration Announcement of the State
Conditions for export goods, forms, etc
4 of Taxation Administration of Taxation on the have been proposed. (1) The export
goods are self-produced goods of the
relevant issues concerning the tax
production enterprise; (2) The production
refund (exemption) of exported goods enterprise has sold the exported goods to
the foreign trade comprehensive service
of foreign trade comprehensive
enterprise; (3) The production enterprise
service Enterprises (No. 13 of 2014) has signed an export contract with the
overseas unit or individual and agreed
that the goods are provided by the foreign
trade comprehensive service. The
enterprise exports to overseas units or
individuals, and the payment is paid by
the overseas unit or individual to the
foreign trade comprehensive service
enterprise; (4) The foreign trade
comprehensive service enterprise exports
as a self-operated manner.
Cross-border e-commerce policies summary

 According to the summary and analysis of the policies related to cross-border e-commerce
issued by the State Council, since 2013, the State Council has focused on regulating and
promoting the development of cross-border e-commerce from the following five aspects
which contain fifteen small parts:
 (1) Optimize policy support (optimize fiscal and taxation policies, improve financial
policies, and improve cross-border payments)
 (2) Improve customs clearance efficiency (trade facilitation, customs management
innovation, inspection and quarantine management innovation)
 (3) Improve management ability (simplified government power, comprehensive service
system)
 (4) Improve the market environment (optimize the market environment for fair competition,
standardize cross-border e-commerce operations; play the role of industry organization;
talent training; infrastructure construction)
 (5) Optimization of cross-border trade structure (commodity structure optimization, trade
structure optimization)

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1) The government has increased its support
for the development of e-commerce
(1) promulgated by the general office of the state council "about
developing e-commerce to speed up cultivating economy new opinion"
([2015] no. 24)

main goal: by 2020, unified open, competitive and orderly, integrity,


law-abiding, safe and reliable basic completion of e-commerce market.
E-commerce is deeply integrated with other industries, becoming an
important platform to promote entrepreneurship, stabilize employment
and improve people's livelihood services, and playing a key role in
the synchronized development of industrialization, informatization,
urbanization and agricultural modernization.

The main content: create a relaxed development environment, promote


employment and entrepreneurship, promote transformation and upgrading,
improve logistics infrastructure, improve the level of opening up to
the outside world, build a security line and improve the support
system.

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1) The government has increased its support for
the development of e-commerce

4) promulgated by the state council "about guidance to promote

the electronic commerce to speed up the development" [(2015)

78]

Goal: in 2020, set up a unified open, competitive and orderly,

integrity, law-abiding, safe and reliable, green environmental

protection system of rural e-commerce market....

Key tasks: actively foster the subject of rural e-commerce

market, enlarge the application of e-commerce in agriculture

and rural areas and improve rural e-commerce development.

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1) China increased its support for the development of e
commerce
(7) e-commerce The 13th five-year development plan

"Planning" established in 2020 to e-commerce transactions


40 trillion yuan, network total retail sales of 10 trillion
yuan, the related professionals 50 million people three
major development goals.On the one hand, e-commerce will
fully integrated into the national economy in various
fields, promote global collaboration of international e-
commerce market, becomes the key to economic growth and the
old and new kinetic energy conversion power;E-commerce to
universal coverage, on the other hand, social development
in various fields, promote education, health care, culture,
tourism and other social enterprise innovation and
development, to promote employment, improve people's
livelihood, benefit the important platform for urban and
rural areas.
1) China increased its support for the
development
Release time Release unit
of e-commerce
Policy name
Year 2014 Zhejiang Province Notice of the General Office of the People's Government of
Zhejiang Province on Printing and Distributing the
Implementation Plan of Cross-border E-commerce in Zhejiang
Province (Zhezheng Government Office [2014] No. 59)

Year 2014 Zhejiang Province Zhejiang Province Cross-border E-Commerce Development


Three-Year Action Plan (2015–2017)

Year 2014 Hangzhou Hangzhou Construction International E-Commerce Center


Three-Year Action Plan (2015-2017)

Year 2014 Hangzhou Notice of Hangzhou on matters related to the promotion of


cross-border e-commerce

Year 2015 Hangzhou Notice of the Hangzhou on Promoting the Development of


Cross-border E-Commerce in 2015 (Draft for Comment)

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1) China increased its support for the
development of e-commerce
Year 2015 Zhejiang Province Notice of the People's Government of Zhejiang Province on
Printing and Distributing the Implementation Plan of
China's(Hang zhou’s) Cross-border E-Commerce Comprehensive
Experimental Zone (Zhejiang Political Letter [2015] No. 65)

Year 2013 Ningbo Notice of the Ningbo Municipal People's Government on


Promoting the Pilot Work of Cross-border Trade E-Commerce
Services in Our City (Ningbo Zhengfa [2013] No. 29)

Year 2013 Ningbo Several opinions of the Ningbo Free Trade Zone Management
Committee on accelerating the development of e-commerce
(Ningbo Bonded tax administration [2013] No.50)

Year 2015 Ningbo Several Policy Opinions of the Ningbo Free Trade Zone
Management Committee on Accelerating the Agglomeration of
Cross-border E-Commerce Talents (Ningbo Bonded tax
administration [2015] No.1)

Year 2015 Shanghai Several opinions on promoting the development of cross-border e-


commerce in Shanghai (Shanghai Office [2015] No. 32)
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1) China increased its support for the
development of e-commerce
Year 2015 Shanghai Announcement of Shanghai Entry-Exit Inspection and Quarantine Bureau
on the issuance of cross-border e-commerce inspection and quarantine
management measures.
Year 2016 Chengdu Several opinions of the General Office of the Chengdu Municipal People's
Government on promoting the development of cross-border e-commerce
(Chengdu Government Office [2015] No. 41)
Year 2015 Ningbo Guiding Opinions of the Ningbo Municipal People's Government on
Accelerating the Development of Cross-border E-Commerce in Ningbo
City
Year 2015 Henan Province Notice of the People's Government of Henan Province on Improving the
Mechanism of Export Tax Rebate Burden (Henan Government[2015] No.
63).
Year 2015 Henan Province Notice of the People's Government of Henan Province on Printing and
Distributing the Implementation Plan of the “Internet Accelerated Speed”
Action in Henan Province (Henan Government[2015] No. 65)

Year 2015 Henan Province Notice of the General Office of the People's Government of Henan
Province on Printing and Distributing the Work Plan for the Construction
of China (Zhengzhou) Cross-border E-Commerce Comprehensive
Experimental Zone (Henan Government Office [2015] No. 156)

Year 2015 Henan Province Several Opinions of the People's Government of Henan Province on
Further Strengthening and Improving Port Work (Henan Government
Office [2015] No. 82)
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1) China increased its support for the
development of e-commerce
Year 2015 Zhengzhou City Notice of the Finance Bureau of Zhengzhou Municipal
Bureau of Commerce on Printing and Distributing “the
Administrative Measures for the Opening of Special Funds
for Zhengzhou City” (Provisional)

Year 2015 Zhengzhou City Opinions of Zhengzhou Municipal People's Government


on accelerating the development of Cross-border Trade E-
Commerce (Zhengzhou Government [2015] No. 9)

Year 2016 Zhengzhou City Notice of the Zhengzhou Municipal People's Government
on Printing and Distributing the Implementation Plan of
the “Internet Accelerated Speed” Action in Zhengzhou
City (Zhengzhou Government [2016] No. 7)

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1) China increased its support for the development of e
commerce
 Zhengzhou has been a pilot city for cross-border e-commerce before
it became a cross-border e-commerce comprehensive test area, and the
Henan government has attached great importance to the development of
cross-border e-commerce and has promulgated a number of policies to
promote the development of cross-border e-commerce in Zhengzhou. In
addition, Zhengzhou is in the China (Henan) Free Trade Experimental
Zone, the National Big Data (Henan) Comprehensive Experimental Zone,
the Zheng Luoxin National Independent Innovation Demonstration Zone,
the Zhengzhou Airport Economic Comprehensive Experimental Zone and
the Central Plains Economic Zone. It provides excellent
opportunities for the development of cross-border e-commerce in
Zhengzhou.
.
Encourage cross-border e-commerce enterprises, the
traditional foreign trade enterprises, small and
medium-sized, give it to take an active part in
promoting cross-border e-commerce B2B (business to
business), B2C (business to end consumers), O2O
(online to offline), and other business model for
common development and innovation of cross-border e-
commerce regulation service mode, make import and
export commodities set in thin trading demonstration
zone and internal integration development
demonstration area, expand import and export scale,
further guide improve residents' consumption, promote
transformation and upgrading of industry, and realize
the goal that buy from the world, sell to the world.
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2) Special funds support e-commerce development

Taking out 50 million yuan in 2016,henan


province made special fund subsidy to
electricity business enterprise and
electronic business park construction,
subsidies standards at 30% of the investment
projects, the highest subsidies of 5 million
yuan.
Zhengzhou city government recently took out a
special fund subsidies ever judge on national
demonstration enterprises, henan provincial
demonstration and demonstration base

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2) Special funds support e-commerce development

Now 21 counties in henan province won


national electricity into the rural
comprehensive demonstration county,with 20
million yuan funding support each.Henan
provincial electricity into rural
provincial demonstration county has
currently has 27.Each county obtain
funding to support 5 million yuan a year,
three years of continuous support (annual
examination) 。

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1.3 classification of e-commerce
1.3.1 classification by trading objects

( 1 ) Business to Business ,B2B

It mainly aims at integrating information within


enterprises and between enterprises and upstream
and downstream cooperating manufacturers, and
conducting inter-enterprise transactions on the
Internet. It accounts for about 70% of e-commerce
transactions.
1.3.1 classification by trading objects

( 2 ) Business to Customer ,B2C

Consumers use the Internet to participate


directly in the form of economic
activities. It currently refers to online
retail.
1.3.1 classification by trading objects
1.3.1 classification by trading objects

( 3 ) Consumer to Consumer , C2C

C2C business platform provides an online


trading platform for buyers and sellers, so
that sellers can actively provide online
trading of commodities, while buyers can
choose commodities freely. For example:
taobao

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1.3.1 classification by trading objects

( 4 ) Consumer to Business , C2B

Consumers first put forward their demands. Then


production companies organize production according
to their needs. Usually, consumers customize
products and prices according to their own needs,
or actively participate in product design,
production and pricing. Products, prices, etc.
highlight the individual needs of consumers, and
manufacturers make customized production.

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1.3.1 classification by trading objects

( 5 ) Online to Of-fline , O2O ,


Through the online shopping guide, O2O type
of e-commerce made the Internet and the
physical store perfectly docked, to achieve
the Internet landing to the of-line, so
that consumers can enjoy the online
preferential prices, but also enjoy the
offline intimate service 。

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1.3.2 Classification by geographical area

(1) Domestic e-commerce

 (2) Cross-border e-commerce


1.3.3 Classification by commodity object
characteristics of the exchange

(1) Tangible commodity e-commerce

  (2) Intangible goods e-commerce


1.4 The functions and
features of e-commerce
1.4.1 The function of e-commerce

(1) Content Management

(2) Collaborative processing

(3) Trading services

Cost, efficiency, service


1.4.1 Characteristics of e-commerce

(1) Virtualization transactions


(2) Low cost trading
(3) High efficiency trading
(4) Transparency trading
(5) Breaking through the trade of time and space
restrictions
(6) Trade removing the intermediate link
(7) The externality of the network economy determines
that the scale of e-commerce enterprises can expand
indefinitely

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