Online Trading Regulations Issued In June, Small And Medium-Sized Shops Face Life And Death Decisions

The Ministry of Commerce plans to publish the online business data protection law in June this year, which may become China's first online trading regulation.

"The introduction of online trading regulations means that the state's supervision of e-commerce has become more stringent."

Related industry insiders said that regulation may mainly focus on improving the threshold and taxation of online shops.

As the news came out, many Internet traders felt the pressure of survival. Many people who were preparing to invest in the shop temporarily stopped. After the regulations came out, they considered whether to enter or not.

Wang Xiaoxiang, a Chengdu native who manages all kinds of carton boxes, has been selling for more than 4 years online.

He introduced that the online shop is better than the entity store. It does not need to pay taxes, nor does it need to rent the pavement. The cost of operation is low and the price of products is competitive.

"However, business is not so good after the promulgation of regulations."

Another network businessman, Mr. Wu, said that the competition of online stores is very intense now. If the corresponding regulations on online pactions are promulgated, the threshold must be improved.

He believes that in the future, it is very difficult for illegal online stores to get through the relevant business procedures.

In addition, for some small shop owners, the operating cost is increasing, and the market entry threshold has been raised. Such a shop should also reconsider the market.

Some small online shopkeepers are more worried about this. They even say they may consider leaving the market later.

It is reported that in 2007, China's online shopping market reached a total turnover of 59 billion 400 million yuan.

The relevant people believe that the introduction of this regulation will help to fill the gap of net business taxation.

For the future of leaving the shop without paying taxes, Wang Xiaoxiang believes that his online business strategy will undergo significant changes in the future.

His packaging business mainly relies on price advantage to divide the market share which was originally monopolized by the postal sector.

The profit of their products is very low. If we start to levy taxes, we will increase the cost and the market advantage of the products will disappear.

He is now considering the gradual shift of products to high-end markets.

Miss Zhou coincided with Wang Xiaoxiang.

She said that the cheaper products on the Internet are cheaper than the market.

"Once the tax is paid and the profits will decrease, then it will be meaningless to operate on the Internet."

Miss Zhou said she was considering withdrawing from the online store.

He Ming, who plans to register a shop in Taobao in May this year, also said that the regulations that will be issued in June will completely disrupt his plan. He needs to reconsider the decision to open a shop on the Internet.

Weng Zhigang, an associate professor of Southwest University of Finance and industry, believes that the introduction of regulations will help to purify the Internet market.

Consumers will be more trusting of online pactions.

But from the point of view of Taxation, most of the shops on the Internet are small shops, which are not the same as those of physical stores, and are still at the stage of cultivating the market.

Many Internet traders value the characteristics of low cost and choose to enter the list of network businesses. If the regulatory measures make the cost of each aspect increase substantially, it will be a heavy blow to these network operators who are in the immature stage.

Zhang Libo, President of the eight network, recently said that it is very necessary for the government to strengthen the regulation and management of the industry, but what kind of way to manage it needs to be considered.

Zhang Libo said that implementation may be very difficult.

There are two reasons: one is that the standard is hard to define and how much profit is difficult to judge; one is that the development of the industry is not mature enough. Once the standards are established, many enterprises will only survive in the cracks, which may cause the industry to shuffle.