The seller obtains the money from the website only after the buyer receives
the item and is satisfied with it.
After each deal, the seller's shop improves its credit rating. In the
competitive online world, buyers tend to trust veteran sellers more readily than
new ones.
This situation forces many new shops to set their prices low. So initially
their profits are limited, but they are rapidly accumulating credit, Liu said.
Liu's 1-year-old shop has done well. "I could have done better, but I am too
lazy," she said.
"I should market my shop better by posting advertisements on different online
forums and send them to all the e-mail addresses I can find."
Besides profits, she says her online business has brought her a wonderful
life.
"I feel so good every day," she said. "I do some housework, watch TV, play
online games and have a nice talk with a potential buyer from time to time."
But Liu is aware this lifestyle is not for everyone.
"If you are an outdoors type and feel bad without access to fresh air, don't
try it," she said. "People like me love to stay at home 24 hours a day and enjoy
sitting for hours in front of a computer."
There seem to be a lot of people like Liu, as the number of online shops
continues to grow.
At one of the online entrepreneurs' favourite websites, www.taobao.com, there
are 300,000 shops selling almost everything under the sun, and more than half of
them opened after January 1, 2005, according to Tao Ran, the website's public
relations manager.
At www.ebay.com.cn, the Chinese subsidiary of New York-based eBay.com,
the number of online shops has reached more than 60,000, which is about three
times more than at the beginning of 2005, said Liu Wei, its public relations
manager.
These online shop owners used to be from such major cities as Beijing,
Shanghai and Guangzhou, but in the past year, more and more have appeared from
cities such as Tianjin, Nanjing and Chongqing, and smaller ones such as Suzhou,
Liu Wei said.
About half of the owners are women, she added.
In 2005, the number of women opening shops at www.ebay.com.cn was increasing
by an average of 40 per cent per month, Liu Wei said.
"The popularity of females starting online shops can be partly attributed to
the fact that their working hours are flexible because they don't have to be at
the office at certain times and are, therefore, able to take care of their
families," she said.
"And as a woman, I believe every woman has a dream of opening a small shop of
her own."
Most of these women entrepreneurs sell cosmetics, women's accessories and
clothes.
Men, on the other hand, tend to sell digital products.
"When men open a shop, they have a clear goal, and that is to earn money,"
said Wang Hongrong, a school teacher in Yantai, East China's Shandong Province.
"But as for women, they want more than money, such as a feeling of
self-fulfilment and involvement in an online community."
Wang sells baby clothes in her shop on www.ebay.com.cn. She began buying baby
clothes online when she got pregnant, and began selling them as her baby began
to grow older.
"I get to know so many mums while running my shop," she said. "We became good
friends and meet often."
The growing number of online shop owners are attracting a booming pool of
clients as well. More than 18 million people have registered at www.taobao.com,
and the number is increasing by 40,000 every day, Tao said.
At www.ebay.com.cn, the number of registered clients reached 20.3 million by
the end of March 2006, compared with 9.8 million at the end of 2004.
But as is the case with male and female online shop owners, there's a
difference in how men and women act as clients.
Female customers tend to be loyal to a few online shops. They visit the shops
often, introduce them to their friends and buy for their family members as well
as themselves, Liu Wei said.
But male clients are more willing to try unfamiliar shops, and most of them
buy only for themselves.
The shop owners interviewed all believe that online shopping has started to
boom.
In 2005, more than 22 million Chinese made purchases on the Internet, 6
million more than in 2004, according to statistics from the Ministry of
Commerce.
The volume of e-commerce transactions, including that of online shopping,
reached 740 billion yuan (US$91.4 billion), 50 per cent higher than in 2004.
The Ministry of Commerce said e-commerce can still develop further in China,
where more than 110 million people have access to the Internet, and 64 million
of them use broadband.
Liu Li said she is fully confident of her future in cyberspace. "There is fun
and hope in the online business world."
(For more biz stories, please visit Industry Updates)