Research On The E-Commerce Profit Chain In China

According to Heskett Service Profit Chain theory, in the service industry, there is a direct correlation between factors, like customer loyalty and satisfaction, staff loyalty and satisfaction and staff efficiency, and the profit. Because the Chinese enterprises have the problem to increase the profit by implementing the E-commerce, so we study the factors affecting the profit and use the E-commerce profit chain to explain the relationship between the factors and the profit to help these enterprises find ways to improve the profitability.This paper is composed of five major parts. The second part is a summary of the former study of the E-commerce and the profit chain. The third part is building structural equation model of China E-commerce profit chain. The forth part is testing and modifying the model. We use LISREL sample data processing software to identify the effectiveness of the measures, evaluate the model fitting and test the model coefficients. The results show that E-commerce profit chain passes the Bentler standard test. The results also show that the trust and the perceived easiness to trade are the major and minor factors affecting the enterprise profits, but compared to other scholars' studies, the relationship between the profit and the trust is more notable in this paper.Finally, we use E-commerce profit chain model to analysis the case of FnFnet. According to the current application of Chinese E-commerce and the empirical results of E-commerce profit chain, we suggest the enterprises strengthen credibility, improve transaction convenience and speed up technological and commercial innovation.