Cross Border e-Commerce Overview – China’s e-Commerce overview through DHgate.com

APEC Cross Border e-Commerce Trading (CBET) Workshop, 2nd APEC BAC Meeting – 25th April, 2016, Port Moresby, Papua New Guinea.

Cross Border e-Commerce or Online Trading beyond borders of Countries is phenomenal taking world by storm, as presented in the recent CBET workshop led by China DHgates.com, one of China biggest and leading e-commerce platform provider. The workshop was led by Ms Diane Wang, Founder and CEO of DHgate.com (website: DHgate.com)
The workshop was facilitated through Investment Promotion Authority Papua New Guinea (http://www.ipa.gov.pg), in conjunction with APEC PNG and APEC Business Advisory Council (ABAC) during the 2nd APEC BAC Meeting, which I with many other SMEs were privileged to attend.

APEC CBET Workshop

DHGate.com overview

website: DHgate.com

DHgate.com homepage

  • Currently one of China’s and World’s leading e-commerce platform
  • Provides cost effective all-in-one solution for your business, connecting buyers and sellers globally, while providing secure payment services, logistics solutions, escrow protections services and internet financing.
  • Access to 1.2 million Sellers
  • Access to 10 million Enterprises and Individual Buyers from over 220 countries
  • 40 million Product Listings
  • A transaction every 3 seconds
  • Multi linguistics sales in English, French, German, Italian, Portuguese, Russian, Spanish
  • Partners include American Express, DHL, FedEx, MasterCard, VISA, UPS
  • First online cross border e-Commerce platform with ‘pay upon successful transaction model’.
  • Largest B2B transaction e-Commerce platform in cross border facts
  • First in market to set upon a dedicated Trust and Service Department, and reliable risk management team.

China e-Commerce Business forecast

  • Forecast to be US$420-650 Billion by 2020
  • 60% year on year growth
  • Internet Contribution to GDP 22% by 2025
  • Cross Border e-commerce 24%
  • Internet finance $5 Trillion in 2015
  • Jobs created, 1.8 million direct & 16.5 million indirect jobs
  • 5-6% retails sales
  • 90% on Market place platform
  • CAGR 120% since 2003

Cross Border e-commerce Eco System

e-commerce ecosystem

Ease of access into global markets, supported by technological revolution -> Brings more profit margin to Sellers

Access to market

e-Commerce vs  Traditional – Business success rates

SME advancement

My take home from the Workshop
Many of our Papua New Guineans are simply uncertain or suspicious of any form of Online Trading or Online Shopping at the moment, due to lack of awareness, education or due past negative experiences own or through hear say. In the recent years, however, stimulated by growth of mobile phone network and 3G and 4G data speeds availability, internet access is now more accessible to more public with good user experiences, better than  many ears before.
In PNG according to Internet World Stats figures, Internet Usage increase from 2.0% in 2012 to 9.4% by year end 2015, a growth  strongly fueled by Mobile Network towers roll out throughout PNG and data network speeds upgrades, between the 3 operators.
Not much by world standard but definitely 300% increase Internet penetration in PNG, and climbing.  This number will be very much in the tens if not twentys by 2016 year end.

Internet Stats

Source: http://www.internetworldstats.com/sp/pg.htm

With the increase in Internet Access and better user experiences, e-Commerce  participation becomes more reality for lot more PNG citizens.
E-Commence is more and more becoming popular and accepted way the world does business, and the time is right for PNG to participate in this is globally phenomena. The workshop in my view should be the launch trigger, to bring together Business Entrepreneurs like-minds and Decision & Policy makers, Financial Institutions, Logistics Companies, PNG Customs, Technology Companies and others relevant stakeholder to further explore ways to progress this enterprise by researching, adopting and developing appropriate models for PNG users through partnership and participation with the ‘Friend of the PNG Government networks’ and or many other professional and successful e-commerce platform such as DHgate.com in the world today.
During the Q&A session, we had interesting  questions and discussions which I have captured and will elaborate in future based on my experiences to increase awareness in this space. Below is the ones I immediately noted;
  • Security of Buyer or Sellers? Seller to receiver payment and Buyer to receiver right goods ordered, in time and quality?
  • How much infrastructure is required for an average Papua New Guinean to participate?
  • Can we sell Agricultural and Livestock (and other perishable product or ‘illegal’ products) on such platform?
  • After Sales Support? Should you have any problems, how to resolved this?
  • What is the government doing on expanding and improving internet services to users
  • PNG Logistical challenges local and internationally to make this Export and Import trading prices more cost effective and attractive to Buyers and create increase in returns to Sellers?
  • Can PNG Buyers or Sellers have financial access immediately through DHgate.com current arrangement or similar platform currently deployed around the world?
  • What challenges PNG Government’s (and regulators), or have plans to support such initiative on e-commerce or have current plan to go down this path?
For anyone who is new to online trading or e-commence, as recommended in the Q&A, one must do own research on any e-business or consult 3rd party advises ( who has done this before) to avoid pitfall of being scam and losing money or business opportunity. This I agree to be very important. This is not only limited to one party review but the more the better and also talk to people who have used the services before.
It is usual to realise that many reviews currently on line are done more out of frustration rather then goodness. A review or rating on the net is ones personal experience(s) is everyone’s ethical obligation to support the growth of e-commerce throughout our country and globally.  My comment here is extending on the view expressed by Online Trust & Safety presenters led by department head Zhang Yali and by her other support presenters during the Q&A session.
Each and everyone using online space must develop the ethics of providing feedback/reviews/constructive criticism to acknowledge good work and services by others apart from the all usual negative criticisms. In doing so we can develop e-business space more rapidly in PNG locally as challenged by Anthony Smare and hence  furthering increasing the positive awareness and security to more Papua New Guineans locally and globally.
For discussion sake, I had a quick online research on the DHgate.com reviews and here is what I found on top of the search. Again, you will find most of the 508 review negative experiences, however, the exercise here to show the type of review available and how easily one can find this as discussed in the workshop.
I personally have not use DHgate.com before but one of my college (here with me in but from Fiji) did several times in the past and is happy with the service, but learnt much going through the online reviews on what do to avoid what the others may have experienced.

Review 01

TRUST Pilot review

Review 1

https://www.trustpilot.com/review/www.dhgate.com
I will also look for some positive review and update later in this post just for the balance.
Closing off my sincere thank you to IPA PNG (http://www.ipa.gov.pg) and APEC PNG and each hardworking staff and the organizers to make the Workshop available and a success for SMEs public of Port Moresby and Papua New Guinea. We look forward to similar workshops e-commerce or others in future.
Considering the fact that many Papua New Guineans are paranoid of buying and selling direct to China, the workshop brings us one step further to close this gap and knowing that DHgate.com are really people through which we buy and sell direct to China is the real takeaway.
Should you want to find out more and have any questions on comments on discussion above, feel free to leave comments below contact me on jacktomon@tnetsolution.net
Be sure to visit as I will continue the research into Cross Border e-commerce platforms and review other popular e-commerce platforms current in operation globally.
Happy Reading and Surfing!

Jack Tomon

TNET Solutions

Website: http://tnetsolutions.net/

(participant @ CBET Workshop, APEC 2nd Business Advisory Meeting, 25th April, 2016, Port Moresby, Papua New Guinea)

Leave a Reply

Your email address will not be published.


*