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China continues to experience an expansion of its e-Commerce industry. This is true both for B2C and for B2B sectors. B2C websites are created by various players. B2C E-commerce is divided into three categories in China: online direct sale, online retail, and online booking services. Online retail remains the major form of B2C business, and online booking services and online direct sale also maintained rapid growth. The rapid growth of B2C E-commerce in China was due to three factors. Firstly, the number of Internet users is increasing, which expands E-commerce user base. Secondly, users` acceptance and recognition of E-commerce are gradually increasing. Lastly, improvement on payment, logistics and credit also provides a better and better industrial environment for B2C e-commerce. The B2C sector has seen a low transaction volume in spite of its large number of websites. The B2B sectors has seen a higher transaction volume and more stable growth than the B2C sector. There is a wide range of the total market size estimated by different sources. China`s C2C market witnessed rapid growth in 2005, the market growth may slow down in 2006 and 2007, due to heavy market competition, challenges to the business model and slow corporate user growth. But there is the bottlenecks in E-commerce in China. The purpose of this paper is contribute to development E-commerce in China by finding the solutions of the bottlenecks in E-commerce in China.
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