2014Q1 - Operating status of Taiwan's 3 major e-commerce platforms

Assessment of webstore platforms in Taiwan in 2014Q1

Yahoo most active; Rakuten fastest grower

Rapidly evolving Internet technology and virtual networks bring convenience to consumers and mean booming development for the e-commerce industry. Data from the Chinese Non-Store Commerce Association (CNCA) indicates that in 2014 Taiwan’s e-commerce market reached a volume of TWD 883.3 billion, and with a projected 15% annual growth rate in the coming years, it is expected to hit the TWD 1 trillion mark in 2015. In a market of such enormous opportunities, many Taiwanese choose an internet store as their first entrepreneurial option.

Currently Taiwan has a number of webstore platforms, of which Yahoo Super Mall, PChome Online, and Taiwan Rakuten are the best-known and most visited by consumers. Price comparison website EZprice published data in April (Major survey on Taiwan’s three major webstore platforms in 2013Q1) and October (Survey on the relationships between the top-100 online sellers vs. webstore platforms in 2013) last year, and made another observation and analysis of Taiwan’s top-three webstore platforms in 2014Q1 (January~March).
This EZprice report analyzes the performance of Taiwan’s top-three webstore platforms in 2014Q1 in terms of total number of stores, number of products, and store closure rates.
The growth rate of the number of stores, compared to the third quarter of last year, showed the highest growth rate (30.70%) for Taiwan Rakuten, followed by PChome Online (8.67%) and Yahoo Super Mall (3.82%). Regarding performance in the number of goods on sale, PChome Online showed the most dazzling growth (27.05%). Store closure rates were still highest at PChome but represented a 1.72% year-on-year decrease, followed by Taiwan Rakuten, posting a slight growth of 2.07 % over last year, while Yahoo Super Mall’s store closure rate remained the lowest among the three major platforms, decreasing further to 0.91 %, making it the most active of the three major platforms.
 

2014 Q1 Comparison of growth rates for total stores, stores in operation, stores closed on Taiwan’s Top 3 webstore platforms

 

Percentage changes for store closures on Taiwan’s Top 3 webstore platforms in 2014Q1 v.s 2013Q3

This data shows that at Yahoo Super Mall, stores have an average of over 900 products each, double the number of products in stores on PChome Online. Also, its store closure rate is lower than those of the other two platforms.
According to a report by Business Next from the beginning of this year, sellers at Yahoo Auction gradually migrated to Yahoo Super Mall by the end of 2013, to compensate for the less-than-ideal sales results and cash flow at the auction site. Moreover, the brisk development of mobile commerce makes sellers differentiate their operation models.
These results from communication-driven migration are directly reflected in Yahoo Super Mall’s performance in terms of more products, high activity, and low store closure rates.
Compared to last year, Rakuten posted double-digit growth in the total number of stores and active stores. The platform’s non-standardized webpage design allows stores more flexibility in showcasing their products’ special features, which enhances effective communication with customers, and works as a key attraction factor.

【Annexes and references】

01.	Total number of stores	Total numbers of stores provided by the top-three webstore platforms, retrieved from their websites on March 31, 2014 http://www.rakuten.com.tw/stop/ http://tw.mall.yahoo.com/merchant_homepage?searchby=sname http://www.pcstore.com.tw/adm/opt/store_all.htm (Different Shops numbers or URLs count as different Shops)
02.	Active stores	Total number of stores actively selling products on each of the top-three platforms, as established using a virtual mystery shopper program; retrieved until March 31, 2014.
03.	Active store rate	Active stores as percentage of total stores on each of the platforms.
04.	Closed stores	Total number of stores on each of the top-three platforms, where consumers cannot buy products, as established using a virtual mystery shopper program; retrieved until March 31, 2014.
05.	Store closure rate	Closed stores as percentage of total stores on each of the platforms.
06.	Number of products	Total number of products on each of the top-three platforms, that consumers can buy (as established using a virtual mystery shopper program); retrieved until March 31, 2014.(Different product numbers or URLs count as different products)
07.	Platform operators and number of products	Statistics to March 31, 2014(These statistics do not include Yahoo Auction, Yahoo Super Mall, PChome Online)

 
Related reports:
【Chinese】Survey on the relationships between the top-100 online sellers vs webstore platforms in 2013 (part 1)
【Chinese】Survey on the relationships between the top-100 online sellers vs webstore platforms in 2013 (part 2)