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China’s e-commerce market sees at least 89 platforms close in 2022 amid Covid-19 controls, fierce competition, weak spending
- Online shopping guide sites were the hardest hit, with 32 of these platforms shut down to account for about 36 per cent of overall casualties in 2022
- The highest-profile e-commerce casualty last year was Eachnet.com, formerly a leading Chinese consumer goods auction site that was acquired by eBay
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China’s e-commerce market saw at least 89 online shopping platforms closed last year, as the sector struggled with rigid Covid-19 control measures, fierce competition and weak consumer spending amid a flagging domestic economy, according to an industry report.
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Online shopping guide websites were the hardest hit, with 32 of these platforms shut down to account for about 36 per cent of overall casualties last year in the world’s largest e-commerce market, according to a report published this week by retail data provider Linkshop.com, which is based in eastern Zhejiang province.
About 20 so-called comprehensive e-commerce platforms halted operations last year, the report said. Eleven social e-commerce sites and the same number of community group-buying platforms also ceased business.
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The Linkshop report said 74 of the failed e-commerce platform operators never received external funding. There were eight start-ups that received an angel round of investment, while three managed to get Series A financing.
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