China Makes Major Change to E-Commerce Foreign Policy

For years, despite its massive population and rapidly expanding economy, China was a limited market for e-commerce merchants because its government would not allow full foreign ownership of these businesses. Recently, however, China loosened these regulations, announcing that it would allow some foreign merchants to own 100 percent of e-commerce businesses in the country, opening tremendous opportunity for online retailers.

New opportunities, however, typically come with stiff competition. As China opens its virtual borders, e-commerce merchants from across the globe will try to establish a foothold in the massive market. And in the scramble to gain market share, the customer experiences online retailers can provide from their websites will quickly become a significant differentiator.

In e-commerce, customer service is largely tied to website performance. For instance, recent research from KISSmetrics suggests that 79 percent of customers who have negative experiences with an e-commerce website are less likely to buy from that business in the future. Conversely, top-notch performance turns consumers into loyal customers. But as online businesses enter the Chinese markets, many are likely to face significant website performance challenges, including:

  • Supporting a Chinese language version of the website
  • Smoothly handling traffic spikes
  • Keeping product inventory up-to-date as the number of transactions increases

In many cases, meeting these challenges will require a shift away from legacy scale-up MySQL database solutions. As the volume of data flow and traffic grows as companies enter the Chinese market, MySQL performance may suffer as the database’s single server nears capacity. At that point, these merchants will be forced to spend capital to scale up to a larger server, which will eventually reach its limits as well.

By contrast, a distributed, intelligent scale-out database like ClustrixDB allows e-commerce merchants to flex capacity up seamlessly, ensuring that site performance never wavers. As capacity demands grow, ClustrixDB automatically adds servers and cores in the cloud; when demand falls, online retailers can scale capacity back down and avoid paying unnecessary costs.

Are you experiencing rapid growth or considering moving into a new market? Take a look at how ClustrixDB’s “flex” feature can work to your advantage.