E-commerce in the developing world
Some experts argue that it will be negligent to call some countries developing. This is due to the fact that these countries are not developing at all. Countries such as China, India, and Countries in the South East are generally regarded as developing countries. Some African countries cannot be called Developing because they are not developing at all. Globalisation has been a major factor why e-commerce in the developing world has increased so much. Alibaba is one e-commerce business located in a developing country. It was started by Jack Ma after he failed to find Chinese goods online. Through this site suppliers from the developing world can reach businesses throughout the globe.
China: E-commerce in the developing world.
The largest e-commerce sector by yearly sales is set to become China. The main cause of Chinese growth is the fact that China has a large growing middle class. Most middle-class individuals have high paying jobs that allow them to buy a lot of e-commerce goods. This has driven the sales on e-commerce sites such as Alibaba. China also has a largely middle-aged population. This population allows has been central to the growth of the Chinese e-commerce market.
The developing world and e-commerce challenges
The major factor that economists always mention as a challenge for doing business in the developing world is the lack of solid institutions or legislation. It is not easy doing business in developing countries. Most of the time foreign entrepreneurs are forced to pay bribes so that they can be offered permits. This challenge is common in the developing world. The lack of proper laws and institutions not only hinders e-commerce but development as well. Another problem with the developing world is the low internet access rate. A small segment of the population is capable of being e-commerce shoppers.