Proposed World e-Trade Platform (WeTP)

Jack Ma, the founder of Chinese e-commerce giant Alibaba, had proposed a new business-led initiative for framing global e-commerce rules. Mr. Ma’s proposed setting up what he calls the World e-Trade Platform (WeTP).

Important Facts

• It was announced at the Boao Forum for Asia. Boao Forum for Asia (BFA) is a nongovernmental and nonprofit international organization with a fixed conference date and a fixed domicile. It is based in Bao, Hainan Province, China. It was formally inaugurated in 2001. The purpose of BFA is to base itself in Asia and promote and deepen the economic exchange, coordination, and cooperation within Asia and between Asia and other parts of the world.
• WeTP is supposed to complement the World Trade Organisation which can remain in charge of global rules for offline trade. WeTP as an international cooperation mechanism that is led by the private sector and driven by businesses with support from governments. It would promote cross-border e-trade and building up related regulations and standards, it can create a fertile soil for the development of the internet economy and e-commerce worldwide.
• Those who run e-commerce businesses are proposing to draft the rules for e-commerce, because in their view, they know best.
• Alibaba will present this plan in the G-20 meet later this year in Hangzhou, China.

Questions for Analysis

• What would be the co-relation between World e-Trade Platform and employment market?
• How has e-commerce changed the way people buy goods? What are the challenges for global E-commerce?
• Internet of Things is the buzzword. What is exactly meant by Internet of Things?

What would be the co-relation between World e-Trade Platform and employment market?

The establishment of an electronic world trade platform objective would be to reduce barriers to make it easier for small and medium-sized enterprises to expand their trading capabilities worldwide. E-trade significantly reduces costs for SMEs and eases access to customers. The benefits of increased trade and globalization have not reached smaller enterprises and developing countries as much as it has benefited their larger, more established counterparts. With the development of e-commerce, any small enterprise, or even an individual, would be able to buy and sell globally via online platforms. In fact, small businesses and individuals are becoming the driving force in the new round of globalization. So there is need to innovate the traditional management methods and regulations in trade to meet the demand of the new era. The broader goal is to lower the threshold to enable more people around the world to conduct trade by reducing barriers and making it easier for SMEs to expand their trading capabilities. Another goal is to facilitate the globalization of consumption while helping young people fulfill their dreams via free and fair trade around the world.

How has e-commerce changed the way people buy goods? What are the challenges for global E-commerce?

E-commerce has many benefits that draw shoppers and change how people buy goods. The convenience and easy availability of e-commerce products are two essential elements of this change. It allows the buyers for comparison of prices as there are many different e-commerce sites.

It is also much easier to find specific, specialized and personalized items on e-commerce sites. For example, purchasing a computer is simplified with e-commerce because the buyer can choose the exact features he wants, often with real-time price changes as he shops. There are also e-commerce companies that focus on personalized items, such as shirts and office supplies. Customers no longer have to settle for something that only partially fulfills their needs.

The social aspect is a great advantage of e-commerce. Customers can leave reviews on products, and these reviews stay on the product page until the owner removes them. With this, customers get real reviews from people who actually bought the product, something that is impossible in a traditional store. This creates more well-informed consumers.

International e-commerce faces a number of challenges. Products can’t be consistently delivered quickly across borders because of inefficiencies in international logistics and customs procedures. For a product to enter a country there might be 10 agencies you have to deal with.

Therefore, there is a need for uniformity in global import regulations.

An initiative like WeTP would boost cross-border e-commerce by setting up free-trade zones and lower the tariffs and easy access.

Internet of Things is the buzzword. What is exactly meant by Internet of Things?

Broadband Internet is become more widely available, the cost of connecting is decreasing, more devices are being created with Wi-Fi capabilities and sensors built into them, technology costs are going down, and smartphone penetration is sky-rocketing.  All of these things are creating a “perfect storm” for the Internet of Things (IoT). The IoT is a giant network of connected “things” (which also includes people). It is basically connecting any device with an on and off switch to the Internet (and/or to each other). However, IoT with all the opportunities it can offer, is also coupled with challenges such as privacy and security.