Research Of E-commerce Model For Direct Selling Companies

E-commerce is a business operating model based on internet. The market is booming andthe overall volume of transactions is rising year by year with growth rate of more than30%,because of the improvement of the domestic internet penetration rate in recent years. Thisattracted many companies “go online” one after another. Is it possible for direct selling torunning in e-commerce way and what kind of model will make direct selling companiessuccess? This article will study the answer to provide solutions for those direct sellingenterprises who are facing the huge challenges from the internet.Firstly, the article will state the theory of direct selling and e-commerce which containsthe characteristics of direct selling, the types of e-commerce and their profiting method. Afteranalysis the feasibility of direct selling running in e-commerce way and shown bothadvantages of e-commerce and direct selling, using the strategy of eliminating thedisadvantages, It will prove that direct selling enterprises running in e-commerce way has agreat advantage to be success and must be burst out of the new business highlights. Secondly,a functioning system will be built up from the perspective of e-commerce. It contained themain business processes, methods and controlling and can make ensure that the informationflow, capital flow and logistics interacted smoothly in the ERP systems, and then theefficiency evaluation and incentive system will be built up as well. Finally, Vorwerk Chinawill be an example for testing. An e-commerce solutions and five years of competitiveadvantage will be built up after analysis the market opportunities and challenges whichVorwerk China faced recently. This result can be a reference for direct selling companies whotry to running their business in e-commerce way.