China's Third-party B2b E-commerce Efficiency Evaluation

In an era of fierce competition, the operational efficiency of third party e-commerce providers dictates their competitiveness and / or survival. In an effort to help third party e-commerce providers enhance productivity and operational efficiency in the increasingly competitive third party e-commerce market, this paper aims to develop a meaningful set of financial benchmarks that will dictate best practices.The paper systematically analyzes the status of efficiency of the third-party e-commerce providers in China on the basis of the Data Envelopment Analysis (DEA) method, and lays stress on the discussion of the efficiency of the listed third-party e-commerce providers, and gives some solutions and suggestions on improving their operational efficiency.The paper takes three listed third-party e-commerce providers at home as the researching samples on the basis of the conclusion of the research production in existence home and abroad. Then according to the principles of the DEA method, the DEA model is founded when the input and output variables are confirmed.The paper computes technical efficiency, pure technical efficiency and scale efficiency of the three third-party e-commerce providers from 2004 to 2007. In analysis of the efficiency values of the third-party e-commerce providers, comparative analysis is made respectively between companies and years. We make comparative analysis of technical efficiency, pure technical efficiency and scale efficiency while choosing the year 2007 as the model sample. And we also study the change's trend of the the third-party e-commerce providers in the efficiencies above mentioned chronologically. In the end, based on the final result of DEA method and the current status of three-party e-commerce providers in China, the paper put forward some solutions and suggestions to raise the operational efficiency of these companies from two angles, that is the technical efficiency and scale efficiency.