B2B e-commerce in Taiwan
Business-to-business (B2B) e-commerce is the largest e-commerce segment in Taiwan, accounting for over 81 percent of Taiwan's e-commerce revenues in 2021. Furthermore, the manufacturing industry remained Taiwan's leading B2B e-commerce sector, earning nearly four trillion New Taiwan dollars in annual sales revenue.The outbreak of the coronavirus pandemic has expedited the online transformation of B2B cross-border trade in Taiwan. Economically, Taiwan's GDP relies greatly on its international trade. The overseas market accounted for more than half of Taiwan's manufacturing goods sales in the past decade. Owing to the cancellation of offline events and expos, a large number of cross-border B2B firms in Taiwan were seeking new opportunities to conduct their businesses online. As of 2021, more than 95 percent of Taiwan's B2B export companies have made sales online. Official websites, third-party e-commerce providers, and online conventions were three of the most common sales channels used by Taiwan's B2B exporters.
Online shopping and e-payment in Taiwan
Despite having one of the highest internet penetration rates and e-commerce usage rates in the region, online retail accounted for less than 12 percent of the total retail sales in Taiwan, significantly lower compared to the global average of 18 percent. Within its 32 thousand square kilometer land area, Taiwan is dotted with nearly 12 thousand convenience stores, 2,000 supermarkets, and 200 hypermarkets. As of mid-2022, the majority of fast-moving consumer goods retail was still made offline in Taiwan.Nevertheless, Taiwan's B2C e-commerce industry grew further during the coronavirus pandemic. According to a survey in 2020, around 12 percent of Taiwanese consumers increased their usage of online shopping during COVID-19, especially on online meal delivery and fresh e-commerce.
Furthermore, the usage of digital payment methods also thrived during the outbreak of COVID-19 in Taiwan. As of July 2021, nearly 50 percent of Taiwanese consumers expected to go cashless at some point, mainly out of hygiene concerns. Shopping malls, restaurants, and convenience stores are three of the major locations where consumers expect to increase their usage of cashless payments. For domestic digital payment providers in Taiwan, the ongoing challenge is to boost the confidence of consumers in the online payment platform and increase the domestic consumer base.
