Some e-business enterprises rely on venture capital

At present, many e-commerce enterprises are running at losses so they need more funds. E-commerce competition is the competition of burning money; it is very hard to make profit. All the e-commerce enterprises are competing against each other for higher rankings in the industry. rnNational Business Daily reporter said e-business development need long term investment and currently 90% of China internet enterprises finance is coming from US funds; while USA economy is still meltdown and some China internet enterprises went public at overseas market encountering credit crisis, so China e-commerce enterprises financing is hard now. rnSome enterprises with only e-commerce business will have more problems later and will face more predicaments. This year and the next two will be a pain period for those enterprises and the bubble may burst in the industry. rnNot all the e-commerce enterprises are relying on venture capital, if the portal could make good profit, such as some enterprises selling products to North America, EU, and Brazil etc. Such good e-commerce enterprises are still very few in Shenzhen. rnMore and more e-commerce portals are providing platforms where domestic suppliers could face overseas buyers directly. Then the e-commerce portals could make more profit. rnIt is a pity that more and more e-commerce enterprises cutting down labor cost and firing employees, or even lowering the wages. rnLarge e-commerce enterprises with good brand in the industry can overcome the difficulties but small and medium sized enterprises may phase out. rnPlease visit IBUonline for foreign trade solutions since IBUonline is a B2B portal dedicated for foreign trade business. IBUonline is also eyeing e-commerce industry news.