According to a survey conducted by McKinsey & Company, more than 27% of people in poorer cities say they would buy items online than those in wealthier cities, even though internet penetration in the former is lower.
Cao Fei, an analyst from Analysys International, a leading internet-based provider of business information. said e-commerce consists of three major parts – information, capital flows, and logistics. The former two can be managed via the internet, but delivery requires proper logistics.
Li Chun, a garment seller on Taobao, told the Global Times, "So far, I have no buyers from villages. If the buyers are from small counties, I have to first check with the logistics company to see if they can be reached."
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