The Chinese Experience ... This is how e-commerce changed families' lives for the better

According to a new joint research released by the World Bank and the Alibaba Electronic Commerce Group, electronic commerce can thrive in developing countries and rural areas, and it can also be a powerful tool for creating job opportunities for middle-skilled workers, women, and other groups.

The American Diplomatic website said in its report that the report "The Development of E-commerce: An Experience from China" depends on a set of statistical data collected for China, in addition to data from a survey conducted specifically for rural Taobao villages in China that are very interested in e-commerce. .

Quoting the report, he reviewed the patterns and development of e-commerce in China, specific government policies as well as private sector initiatives.

Moreover, the report sets out the basic conditions necessary for the successful development of e-commerce, and examines the relationship between developing e-commerce and achieving improvements in the level of household welfare.

Overcoming market barriers
According to the report, e-commerce can overcome market barriers and enable consumers to communicate with companies. E-commerce can provide employment opportunities either directly, or through logistics and other parts of the wider e-commerce system.

Improve consumption
The website added that e-commerce improves household consumption and reduces inequality by providing rural areas with comfort, diversity and low prices for urban residents. In general, this technology contributes to achieving economic growth, by reducing the adoption of the approach to information inequality and increasing economic efficiency.

"The experience of China shows that developing countries can take advantage of digital technology and e-commerce to create jobs and improve people's lives," said Victoria Kwakua, World Bank Vice President for East Asia and the Pacific.

"We hope this report will lead to discussions on creating ways to support inclusive growth through digital technology and e-commerce," Kwakwa said, according to the same report.

The site pointed out that China has one of the largest and fastest growing e-commerce markets in the world, as it is responsible for more than 40% of the total value of e-commerce transactions worldwide. More than 5% of all employment in China is for e-commerce, and online purchases have become part of the daily lives of many Chinese families.

For his part, Wen Jia, partner and head of public affairs of the Alibaba Group, said, "The rapid development and prosperity of rural e-commerce in China has demonstrated that creative works initiated by entrepreneurs at the grassroots level in rural areas of developing countries can flourish through the e-commerce platform under appropriate conditions." ".

The well-being of families
The website reported that the report concluded a positive relationship between e-commerce and the improvement of family welfare in rural China.

In Taobao villages, households that participate in e-commerce have an 80% higher income than households that do not.

Workers in electronic stores earn equal or higher wages than workers in private urban industries, where women and younger, better-educated families benefit from e-commerce in China heavily, according to the same report.

Risks and challenges
The report identifies the risks and challenges that must be addressed in developing e-commerce.

These include organizational challenges, such as how software providers are organized to provide an equal level of comparable digital services, protect consumers, and ensure fairness between online and direct sellers.

In addition, challenges include dealing with special online risks such as cybersecurity, privacy, fraud, selling damaged or counterfeit products, technical concerns related to online payment and the risks posed by imbalances in competition between platform providers.

Development factors
The site reported that the report highlights three enabling factors for the development of e-commerce, which are investment in training and building skills to increase human capital, appropriate infrastructure and logistics, and a favorable work environment.

"The achievements China has made in e-commerce can be explained by the country's massive investment in infrastructure for decades and the rapid improvement of its business climate in recent years," said Gong San, executive vice president of the China Center for International Knowledge of Development.