According to data from ¡°China Online Shopping Market Research Report For Q3, 2007¡±that was recently released by iResearch, transaction volume of online shopping reached 15.28 billion RMB in Q3. Considering service providers situation, iResearch found three changes of the industry:
1. Promotion promotes transaction volume in off-season Without stimulation by holidays, Q3 is the off-season for offline retailing. And 2006 online shopping data proved that it is also off-season for online shopping. But in 2007, main online shopping operators strengthened marketing efforts in Q3, and continued optimizing websites. The new Eachnet platform also launches in late August after months testing. All these improved Q3¡¯s online shopping transaction volume, which increased 106.9% YOY, 24.7% sequentially to 15.28 billion RMB.

2. Taobao¡¯s market share exceeds 80% Taobao continues to expand its leadership. Its transaction volume reached 11.4 billion RMB, which accounts for 82% of C2C market, an increased of 3.3% sequentially.
After months testing and user data transferring, Eachnet launched new platform in 30, August, and changed domain back to Eachnet. On the basis of former users, Eachnet takes new service concept and slogan-quality shopping and happiness in Eachnet, waiting for the test of market and users.
Paipai, which is in the 3rd place, also accelerates its integration of logistics, merchandise classify and other business of Tencent. The transaction volume increased 63% sequentially to 980 million RMB. Its market share also increased from 5.4% to 7.1%. iResearch believes that with the deeper of integration and improve of user experience, Paipai¡¯s transaction volume will maintain rapid growth.
 3. Joyo wins the promotion battle, promotion pulls B2C transaction volume In Q3, main B2C operators all strengthened promotion. According to data from related e-business union, the promotions are effective in promoting transaction volume. B2C websites which have received venture investment also gradually increased marketing budget.
With the pull of marketing, Joyo¡¯s share of transaction volume reached 12.9%, 1% higher than Dangdang in Q3. And vertical B2C websites holds the rest market. Most vertical sites also own telephone sales, category sales, offline sales and other channels. The transaction volume in the report was estimated by their online transaction volume.

|