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1、-e-commerce-and-traditional-commerce-第 14 页An investigation of e-commerce and traditional commerce: superiority of e-commerce over traditional commerceGUO TIANTONGTUC-FIU 1501 Writing and Rhetoric(II)Professor: LILIJUAN2017.6TABLE OF CONTENTSCHAPTER1 Overview of E-commerce in China1.1 The current si
2、tuation of E-commerce in China1.2 The advantages of E-commerce in China1.2.1 Contribution to economy1.2.2 Convenience of life1.2.3 Development of related industries1.3 The problems with E-commerce1.3.1 Transaction risk1.3.2 Traps of E-commerceCHAPTER2 The impact of E-commerce on Traditional commerce
3、2.1 Price advantage of e-commerce2.2 Strengths of e-commerce in time and space2.3 Case studyCHAPTER3: Main measures to improve the development of E-commerce in China3.1 Promulgation of laws and regulations 3.2 Planning and macro guidance3.3 Training of E-commerce talentsCONCLUSIONAbstractWith the ad
4、vent of the Internet climax in 1999, e-commerce has developed for eighteen years in China. The development of the current situation in e-commerce is imbalanced.This paper is divided into three sections. Firstly, the writer overviews e-commerce in China, including development, advantages and negative
5、 impacts. Secondly, the writer analyzes the impacts of e-commerce on traditional commerce and finds out the superiority of e-commerce. Thirdly, the writer chooses three measures to deal with the problems of e-commerce. To sum up, this paper draws a conclusion that e-commerce has more superiorities t
6、han traditional commerce.Key Words: E-commerce, Traditional commerce, SuperiorityINTRODUCTIONWith the development of technology, e-commerce runs into peoples life at an unexpected and unprecedented rate. Peoples consumption concept and behavior are changing. E-commerce with unpredictable prospects w
7、ill be certain to change peoples way of life completely, and traditional commerce will be eliminated one day. The writer uses facts to demonstrate, data to show and research to analyze the tendency which traditional commerce will be replaced by e-commerce. This paper includes the overview of e-comme
8、rce in China, the impact of e-commerce on traditional commerce and the main measures to improve the development of e-commerce in China to explore this topic.E-commerce has been developing for eighteen years in China, and uses its preponderances to remedy the deficiencies of traditional commerce such
9、 as high price, defects of promotion and limitation of time and space. These problems have been solved effectively. Although the development of e-commerce is amazing, we cannot ignore the negative impacts, such as the traps of online shopping and transaction risk. The writer believes that these disa
10、dvantages cannot be avoided but we can use measures like making plans and macro guidance, promulgating laws and regulations, cultivating talents of e-commerce to reduce the deficiencies. The environment of e-commerce will get improved, which requires the joint efforts of the public.Chapter 1 Overvie
11、w of E-commerce in China1.1. Development of E-commerce in ChinaWith the upsurge of the Internet in 1999, the scale of Chinas online shoppers began to rise. In 2010, Chinas online transactions are close to 498 billion yuan. At the same time, the number of online shoppers reached to 148 million. China
12、 promotes e-commerce growth in Asia. 1 For some traditional companies, they must change the management methods to adapt to the new time, meanwhile e-commerce provides a new platform for these companies which need to be changed. 2Before 1999, the pioneers of the Internet in China began to set up the
13、B2C, but they met with many obstacles. Nevertheless, with the passage of time, these questions disappeared. In 2005, the annual turnover of D broke through 440 million yuan, and this achievement improved the reliability of E-commerce, as a result, more and more Chinese netizens try to embrace the E-
14、commerce. 5The data from researchers show that the number of online shoppers stay a straight growth from 2011-2015, especially in 2015. The rate of increase reached 14.3%. Researches on the current situation of e-commerce in China, TMALL.com account for the ascendancy, and some other websites also s
15、hare the market, such as S, JD.com, D, GOME.COM.CN and so on. Fig 1 shows the portion of different online shopping websites in the market. 4Fig 1 The portion of different online shopping websites in the marketFrom Fig 1, it is clear that the TMALL.com accounts for the ascendancy and JD.com also has
16、a large portion, but is less than TMALL.com. We can clearly notice the imbalanced development of online shopping in China.1.2. Advantages of E-commerce in ChinaThe market of e-commerce has formed a certain scale, each of the Internet users has become a potential customer. The advantage of e-commerce
17、 is obvious.1.2.1. Contribution of economyE-commerce promotes economic growth in three ways, improving the efficiency of trade, readjusting industrial structure and using the scale effect. Fig 2 The new consumption and growth rate of e-commerceFrom the Fig 2 we can realize that the promotion of e-co
18、mmerce was increasing with the years. Until 2015, the contribution rate of economic growth reached 4.23%, so the writer predicts that this number will continue to increase. 71.2.2. Convenience of lifePeoples daily life is influenced by e-commerce directly, among which convenience, speed and efficien
19、cy have become the most popular facts. With the popularity of e-commerce, people use online shopping instead of entities, keeping indoors to enjoy shopping. 81.2.3. Development of related industriesAs the related industry of e-commerce, express industry was introduced into China in the1970s. It has
20、gained more and more popularity. The data from the State Post Bureau show that the logistics of e-commerce for more than 60% of the express industry business.The impact of e-commerce will be head and shoulders above itself, which will change life, industry and employment. It can be predicted that e-
21、commerce will carry a new industry revolution, and finally it will take the mankind into information society.1.3. Disadvantages of E-commerce in China Although the advantages of e-commerce are huge and we cannot ignore the negative impacts of it, transaction risks and traps of e-commerce are the big
22、gest problems ,such as the lack of management system, technical bug and human factors, and so on. 9 These causes have been expanded with the development of e-commerce, and more and more people begin to question and reassess its safety for the e-commerce.Chapter 2 The impacts of E-commerce on Traditi
23、onal commerceAs the emerging industry, E-commerce had experienced a hardship and changed peoples transaction mode and thinking habit. At the same time, e-commerce drives the economic growth when it changes economic structure. The strengths of e-commerce have lower price, simplify trade procedures, i
24、mprove trade efficiency and promote the enterprises develop well. 122.1. Price advantage of e-commerceThe advantage of e-commerce in price is from the direct connection in producers and consumers, whose commodities are directly delivered from the production merchants to the consumers, because it red
25、uces the transaction of the intermediate links and greatly saves the manpower cost. The writer uses Table 1 to analyze the reason of the low price.Table 1 The cost of e-commerce and traditional commerceDesignationLabor costMarketing promotion costRentTraditional largelargestore for high rentsElectro
26、nicsmallsmallvirtual store for freeFrom Table1, e-commerce mode does not require clerks to provide one-on-one service to customers, so one shopkeeper couple with a computer can achieve the sale of goods. But traditional commerce cannot do that, labor costs are rising because of the relative lack of
27、human resources, which leads to a decline in profits if hiring more employees.With the advent of the information age, the update speed of information is fast and the growing competition among the same goods is fierce. If production wants to stand out in thousands of similar goods and catch the consu
28、mers eyes, it is necessary to increase the advertisement. 14Under the e-commerce mode, retailer can manage in their own houses or even choose a cheaper warehouse instead of renting stores. This mode greatly saves the land renting which can put into sales operation process to create more profits. But
29、 it is difficult to achieve in traditional commerce.2.2. Strengths of e-commerce in time and spaceComparing with traditional commerce, e-commerce uses the Internet as a platform for sales. It breaks the limitation of time and space, therefore, customers can take an order at anytime and anywhere with
30、out the regional barriers.Fig 1 The process of e-commerce transactionsFig 2 The process of traditional commerce transactionsThe process of e-commerce transaction in Fig 1 is simpler than traditional commerce in Fig 2. It can quickly spread the enterprises information of new product, provide service
31、for the customers, understand the competitors information, and meet the needs of the consumers. Many business activities can be done in a flash.2.3. Taking the example of Haier to analyze the inevitable trend of enterprise transformationHaier was founded in 1984 and has been stable development more
32、than 30 years, it has become a large internationalizing enterprise which enjoys high reputation at home and abroad. In 2000, Haier began to reform and invest 10 million RMB to organize companys e-commerce platform. 112.3.1 Reasons for the success of Haiers transformation 13(1) It invested millions t
33、o support the construction of e-commerce platform because it has a clear development strategy.(2) It has three kinds of reforms to adapt to the trend of e-commerce. The first is to reform management to make a shift, the second is to change from the domestic market to foreign markets, the third is fr
34、om manufacturing to service industry. These reforms pave a good foundation for Haier to develop e-commerce. 10(3) It directly faces consumers and enterprises. Manufacture has its own home page to show the information about products.(4) Haiers e-commerce sets up a bridge between producers, operators
35、and consumers, which lets the negotiations, orders and payment on the Internet become a reality. This action opens a new space and achieved the integration of business activities.(5) Haier uses e-commerce platform to shape a better image and bring infinite development opportunities.The disadvantage
36、of traditional commerce is obvious, however, e-commerce as a product of the times can make up for these defects. Although the writer cannot predict when e-commerce can completely replace the traditional commerce, its potential is infinite.Chapter 3 Main Measures to Improve the Development of E-comme
37、rce in ChinaDuring the process of increasing the amount of e-commerces transactions, the issue of tax revenue loss and its management of e-commerce became an important part of Chinas tax management system. At the same time, fake commodity, management blind spots and transaction risk also hinder the
38、development of e-commerce.These disadvantages are seriously restricting the rapid development of e-commerce. Therefore, the writer suggests that the government should promulgate some effective measures to solve these problems, such as relevant legal documents, planning and guiding of management depa
39、rtments, training talents and so on.3.1. Promulgation of Laws and RegulationsThe transaction of e-commerce has greatly reduced the middle stages, but it results in the traditional way of withholding tax which cannot be completed. It is easy to cause the tax loopholes due to the business between ente
40、rprises and consumers through the paperless way.According to the Zhu Juns study 15 of the tax loss of e-commerce, he used the tax burden method to analyze and estimate the scale of tax loss of e-commerce in China for the first time. Table 2 shows that the Chinese e-commerce tax loss has sharply incr
41、eased from 2007 to 2011.Table 2 The estimated scale of tax loss of e-commerce in ChinaTime20072008200920102011Tax burden (%)13.329.8811.559.829.33E-commerce turnover1 (billion yuan)6201400206749808900E-commerce turnover2 (billion yuan)2300031000380004500060000Tax loss1 83138308489830Tax loss23063306
42、2439044195597Proportion of total actual tax (%)0.180.250.520.670.93The best way is to promulgate laws and regulations, considering the particularity of e-commerce. The writer thinks e-commerce legislation should follow 5 principles.(1) The principle of tax fairness. The essence of e-commerce is comm
43、odity trading. Therefore, in accordance with the requirements of the principle of tax fairness, e-commerce should use the same type of tax law with traditional commerce, which means the government only needs to modify the current law and expand the scope.(2) The principle of tax neutrality. Tax shou
44、ld not be an obstacle to the development of e-commerce and affect the choice of the trade mode.(3) The principle of national tax sovereignty. Some developed countries, such as the United States, have proposed to replace the territorial jurisdiction by the resident jurisdiction of the tax principles
45、16. The purpose is to protect their own interests and deprive the interests of developing countries. In this case, we must give full ideation to the interests of our country and other developing countries.(4) The principle of easy collection and payment. The formulation of tax policy should take the
46、 technical characteristics of the Internet into account.(5) The principle of appropriate discount. This principle means promoting the development of e-commerce in China.3.2. Planning and GuidanceIn developing countries, it is necessary for the government to directly participate and give guidance. Co
47、mpared with the developed countries, the developing countries enterprises are small in scale, backward in technology and low in debt repayment ability. The governments participation will help to introduce technology, expand the scale and improve the ability to repay debts. The correct guiding princi
48、ples should focus on the future, make e-commerce as the driving force of achieving sustained economic growth and adapting to the environment of the market competition.3.3. Training of E-commerce TalentsE-commerce industry is an emerging industry at present, while its professional talents are very scarce and experienced professionals are seriously inadequate. In 2001, the Ministry of Education formally approved of 13 colleges to set up e-com