Mar 22 2008
The Government's Role in Promoting Logistics Services in China
The Government's Role in Promoting Logistics Services in China
China has joined the World Trade Organization (WTO) and become the world s third largest trading nation, behind the United States and Germany. Multinationals now consider using China sourcing in international trade to be essential, if they are to remain competitive, and companies like Wal-Mart have adopted China sourcing in a big way.
Rapid economic progress and booming internal and international trade in China have been putting pressure on the country s fragmented transportation networks and logistics systems.
China s Traditional Logistics Problems
Transportation costs are almost three times as high in China as compared to the United States. The country spent 21.3 percent of GDP on logistics in 2004, compared to 8 to 9 percent for most countries.
China has an unfriendly geography that includes major mountain ranges, extreme altitudes, permafrost, deserts and seasonal flooding, which hamper the development of an integrated, countrywide logistics industry, and so hamper international trade.
In addition, local governments in China erect regulatory barriers, including fees, inspections and licensing requirements, to protect local transportation companies. Toll charges are very high, and very few licenses have been issued for countrywide transportation operations, which makes China sourcing difficult.
Due to this, multinational companies that are keen on China sourcing, and want to move goods across the country, prefer to rely on third party logistics providers.
China has a history of state ownership in the logistics sector, and this has resulted in management and infrastructure ill-suited to international trade and sourcing. In addition, the infrastructure has been designed to move bulk commodities, rather than sensitive or perishable goods.
Luckily, the government expects that high levels of foreign competition, and demand for China sourcing, will raise standards in the industry, and promote international trade.
A New Dawn for China Sourcing: Improved Logistics for International Trade
Due to the boom in international trade, the demand for rail transportation is much higher than supply. The government has planned heavy investments to extend the railway network and to build freeways.
The government has realized that the overall health of the economy is dependant on the country s logistics capabilities, and it has given a high priority to this sector in its current Five Year Plan.
Massive investments are being made to develop the country s logistics capabilities rapidly, to keep pace with the boom in international trade.
The future is looking brighter for businesses wishing to source from China as the country s logistics network transform from that of an insular state into a WTO nation focused on international trade.
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Ecommerce Solutions: How to Take Your Business Online
Online commerce is the way of the future, expand your market place, increase sales, work less, increase your revenue, etc. Really?, but at what cost and what do you need to know to get started?
Many businesses are weighing the costs of moving into the online space now that barriers to entry are lower than ever, but to determine the specific solution that meets your business needs is not as easy as comparing prices.
In order to differentiate the common strategies that you may apply to sell your widget online, let s take a look at three main ecommerce solutions on the market, and then ask some key questions that will better facilitate your decision.
1.) Amazon.com/E-Bay/MSN Shopping as an eCommerce Solution
With this means of e-commerce there is really no true e-commerce or shopping cart development that goes on. To bring your widget online you would simply create an account on one of the various web sites that are out there and begin selling products.
Pros
- Easy to implement
- May have products on the web within an hour
- Very low cost, great for out-of-home business
Cons
- Minimal flexibility
- Usually transaction based, or require a percentage of sales
- No automated integration into any back end systems
- No options for product configuration
2.) Templated eCommerce Solutions
Templated ecommerce platforms are generally packaged sites that are very quickly setup and launched. To summarize the process:
- A business will purchase, or lease via a monthly contract the e-commerce solution.
- Customize their web site by selecting from several templates modifying it with a color scheme
- Add content to their new web site by way of a technology called content management.
Content Management allows non-coders, the ability to update and modify the content of a web site. These solutions meet the typical needs of a business, but tend to fall short when customization is necessary.
Pros
- Easy to implement with little required development.
- Getting a site up and running is not as fast as a pre-built solution, but much more rapid than a custom developed solution
- Is comparatively inexpensive.
- Provides branding not available in pre-built solution
- Great for small businesses entering the online space for the 1st time.
Cons
- Minimal flexibility
- Cost may, or may not include graphic development of the site
- Integration with business processes is lacking
- No options for product configuration
- Sometimes transaction based, or require a percentage of sales
- Difficult to optimize for search engines
3.) Custom Developed Solutions
Custom developed solutions are exactly what their name implies. The user interface of the web site, product catalog and check out process are all custom-developed to meet specific needs. The look and feel of the web site is typically original, utilizing graphics that are targeted to a specific market or customer.
The key reasons for looking at a custom developed e-commerce solution are to support a business process that your company may have which cannot be completed with a templated design. (i.e. integrating back office systems such as accounting, ERP, or fulfillment applications), or to support some level of service during the check out process like a custom product configuration.
Pros
- The site is developed to your specific business requirements
- Custom features or applications may be added to the site at any point in the future, providing growth
- Integration capabilities are limited only by the ability of your developer
- Site may be optimized for Search Engines, (SEO)
- All forms of shipping, handling and fulfillment are options to integrate
- Virtually unlimited number of products and categories may be supported
- Your site will have a unique look and feel tailored to your business
- Great for established ecommerce providers, and large businesses looking to go online
Cons
- Typically more expensive
- Longer development times
- Require more active involvement from you.
Questions that will help you target the right ecommerce solution for your business:
- Will my business survive if the web site is unsuccessful?
- Do I have back office applications that need to be integrated into the web site? For instance, accounting systems, inventory management or ERP systems, Point of Sales Systems, etc.
- Do I need custom shipping integration?
- How important is search engine optimization?
- How will I administer the e-commerce application? For instance, how easy is it to add, edit, or delete products and how do I view the business that the web site is doing?
- How will I differentiate my site from my competitors?
- Does my business currently have the expertise to manage the e-commerce solution, do I need to hire someone, or will I totally outsource the management of the web site?
- If I chose to manage the e-commerce solution by myself, where and how will I host the application?
- What is the ongoing maintenance going to cost?
- How reliable is my developer/web host?
- Does my business sell to consumers, other businesses, both?
- Does the look and feel of my web site meet my customer s needs? A quick example of this is if you are selling to consumers you typically need a more attractive and easy to use site, if to businesses a utilitarian interface may be more critical, as they typically want to complete their order as quickly as possible.
This is the first in a series of articles designed to help you understand what is involved in bringing your business on line. The purpose of these articles is to take the complexity of the e-commerce marketplace and break it down into easy to understand articles.
Questions or comments on this article may be sent to Mike at mpowell@objectwareinc.com.
Mike is the Director of Enterprise Business at Objectware, Inc, an <a href="http://ecommerce.objectwareinc.com">ecommerce solution company</a> and <a href="http://www.objectwareinc.com">Web Design Company in Atlanta</a>. He has spent the last 18 years working for companies like Novell, Cisco, Dell and Microsoft, and currently serves as a liaison between the customer and software development teams to ensure customer needs are met.<br>
Why One Curable Fact is Costing Site Owners Millions in Lost Revenue!
If you want to stop losing your traffic even after your visitor has clicked your buy now button(s) read on…
Here is proof from Microsoft that the problem is built into their Internet Explorer web browser. 84% of people use IE. Further evidence proves Netscape, Opera and Firefox are contributing to a major problem for site owners.
Every Web Server based on UNIX, Linux, or Microsoft, and the rest, causes this problem. Plus if you have anything to do with PPC, PayPal, Card Merchant Service, Google Adwords and Google Adsense ” even your FREE search engine listings ” then you have to know about this and what to do about it.
What is the Problem?
It is a SERIOUS (circumvent-able) FLAW in the relationship between ALL your COMBINED
ONLINE SERVICES:-
Your Web Server (regardless of product or platform) PLUS
Your PPC campaigns (like Adwords or Adsense and others) PLUS
ALL Your Search Engine Listings (regardless of search engines used) PLUS
ALL Your Merchant Accounts (regardless of product or platform) PLUS
EVERYONE’S Internet Web Browsers (regardless of product or platform)
Here s the issue:
All web servers cache (or put into memory) web HTML pages. If an HTML page’s content is changed and resent to the web server, visitors may still see the OLD relic page - served from the web server cache!
PLUS
All web browsers store a cache of HTML pages visited (including the images), locally. If a visitor returns to make a purchase AFTER an update was made to the server they may see a relic “cached” version of the content or even worse - your “buy now” buttons - being served from their own desktop!
Here is an example of how your site could be affected right now.
Say you change the price of an item on web page from $50 to $40. Say you have a buy button linked to PayPal for $50 so you go and get a new $40 buy button for your new (updated) buy page. You then upload your buy page to your web server with the new $40 PayPal button. Next you go to Adwords and change the price of your campaign from $50 down to $40. And you wait for traffic and purchases. And you wait and wait and…wait.
If your web server’s cache does not refresh or if your customer’s browser cache does not refresh a visitor who clicks on your Adwords advert may get your old relic page. And when they click on your buy button and are presented with your PayPal payment page they will suddenly see the price of $50 instead of $40! Why ” because your web server’s cache did not refresh and they were sent an artifact of your old page. AND OR their browser showed them a relic of the page.
Assuming nothing on your page changed except the new buy now’ buttons from PayPal your customer will think when they click your buy button that they are going to pay $40. But when they get your PayPal page the price they see will be $50.
Take this a step further. Say you updated your buy price several times over the course of a week. On Monday your price was $50. By Sunday you had changed your price down 3 times to $30 and still no sales. You could have been losing truck loads in lost revenue because your web server or customer’s browser is still serving up a page you uploaded days ago.
You have paid for pay-per-click advertising (PPC), hosting, etc, and still not made many sales ” why ” because when your customers went to pay you they were shown the wrong price!
Forget PayPal for a second. This can happen with any buttons or links you download from a web merchant or affiliate and could be affecting your business right now.
Discover how to cure this problem once and forever. I give simple, quick instructions that anyone will understand. Everyone is affected. Even you! Visit http://www.justonefact.com right now to ensure you never lose customers because of a problem you CAN fix in minutes.
Steven Richards is a seasoned Web Consultant of over 12 years. He lives and works in Sydney Australia, operates a variety of web sites, and consults on SEO, PPC, and Internet Marketing.
Of Web Shops And Clicking
With the influx of modern technology into our lives, more services are made easier. New gadgets, tools, and modes of transportation make essential human functions like communication and transportation a breeze. Of these developments, none has made as much impact as the Internet. Communication, access to government service, and even business transactions are made possible through its use. And with the rise of internet merchants and online payment processors, the most basic human function of consumerist ethos (a.k.a. shopping) is clicks away.
What are internet merchants and online payment processors? Internet merchants are simply business people who sell their products or services through the internet. Internet merchant sites function as virtual shops wherein online shoppers can browse through pages of products or catalogs. These sites usually feature the prices of each service or product, sales promos, virtual shopping carts, and most importantly, several payment schemes. These payment schemes are modes of online payment processors. Online payment processors are institutions who offer companies or businesses a system to accept and process debit and credit cards minus the hassle of dealing with the different banks or issuers directly. They basically work as a middle-man between the card holder and the `Net merchants. The merchants pass credit card details to the processing website, or the merchant page could jump directly to the processor’s site. The processors then validate the card details and account. After validation, card details are sent back through `Net merchants’ page for confirmation or rejection. If confirmed, the purchase is done and the shopper only needs to wait for the delivery.
Despite the efficiency of internet merchants and online payment processors, the pros and cons still needs to be clarified. Customer convenience, added sales channels, automated authorization, and a streamlined payment system count as the advantages of availing the services of internet merchants and online payment processors. However, there are still risks in using the system. Charge or fees for online purchases are usually higher. Security risks are also issues. Unless you are sure of the security measures provided by the merchant and processing sites, this risk is real. Sensitive information like account information can be hacked into, altered, or stolen.
To avoid or minimize these risks and to fully enjoy the services of internet merchants and online payment processors, vigilance and information is key. Read the fine print on the account and conditions set by the `Net merchants. You may miss other conditions or extra charges if you just read the top half or click the Agree button. It’ll also help to check the integrity or status of the processing site the `Net merchant uses. After all, it’s your money that’s at risk. If you’re finally sure then, click on and enjoy shopping. A reminder though, you may need to exercise serious self-control.
For more valuable information on Internet Merchants and Online Payment Processors, please visit http://www.internetmerchants.info
Ecommerce Fundamentals
eCommerce can be VERY complex. To offer a world class customer experience, retailers must incorporate technologies and functionality that exceeds rising customer expectations.
On the flip side however, site fundamentals still play a very large role in converting visitors into customers. Many retailers surprisingly lose sight of these site basics and leave significant sales on the table. This brief examines 4 quick ?fundamentals? every eCommerce manager cannot afford to lose sight of.
Think Fast
Speed has become less of a problem due to the penetration of broadband, but don?t forget that a significant number of people still shop by a dialup connection. When creating a site framework, designers and e-commerce teams should ensure that the site is developed with pages loading in less than 9 seconds (over a dial-up connection).
Our recommended page size is within 60-70k in bytes. At that amount, sites will likely load within the maximum wait time of 9 seconds. Online retailers should avoid flash at all costs within their transactional site. Flash?s artistic aspects may help you establish a brand presence ? but it will likely lose potential customers before they have even searched within your store.
Image is important
Images are a very important aspect of selling online and are often neglected. All product images should be of the highest resolution possible, be much larger than the product page original, and have
multiple views. Dynamic imaging capabilities can improve the user experience to an even higher level by increasing interactivity (zoom & rotate). At a minimum ? retailers should have at least two additional views outside of the product page image to help build emotion.
Be my guest
Shoppers do not like being forced to do anything, especially when they are ready to open their wallets. Forcing a shopper to register on your site before purchasing is a sure way to drive a portion of your traffic to your competitors. Too often, shoppers do not have the time or the inclination to fill out a lengthy form explaining what types of information they desire.
Always offer the ability to checkout as a guest. You will see less customer leakage within the checkout process and can still offer the option to register when the sale is completed.
Make sure it?s ?above the fold?
Your homepage is the most important page within your eCommerce store. It sets the initial tone for the shopping experience and offers your best promotions and products to your visitors. Users typically visually scan a web page from top to bottom and then from left to right. All critical content and navigation options should be obvious to the shopper without having to scroll down. If you have your best promotions ?below the fold? ? you can bet that a large percentage of browsers are not scrolling down to see it.
Craig Smith is the founder and managing director of Trinity Insight LLC. Trinity is a consultancy that helps online retailers sell more products within the eCommerce marketplace. <a href="http://www.trinityinsight.com" title="http://www.trinityinsight.com" target="_blank">http://www.trinityinsight.com</a>
