SHANGHAI'S online commerce volume reached 230 billion yuan (US$32.9 billion) in 2007, accounting for more than 20 percent of the national level, the Shanghai E-commerce Association said in a recent report.
Last year's volume doubled from that of 2002 and the figure is expected to hit the 340 billion yuan mark in 2010, according to the association.
"The result consolidated Shanghai's No. 1 position in the sector and the city has ranked No. 1 since 2004," said Liang Jin, the chief secretary of the association.
More than 80 percent of the local online commerce came from big enterprises, such as Baosteel's supply system Websites, Lianhua Supermarket's online shop and the prepaid OK card system.
Online payments will be used in the public sector this year, for individual online purchasing and paying public utility bills, said the Shanghai Municipal Informatization Commission, the city's top IT regulator.
The online commerce system will also be promoted in industries like ship building, car manufacturing and health care, according to the association.
While benefiting from a direct sales channel and low marketing expenses, emerging online retailers will go head-to-head against existing e-commerce firms, IT research firm Analysys International, a Beijing-based IT consulting firm, said.
Among the newcomers in B2C (business to consumers) are manufacturers of underwear, leather products, communication devices and automobiles, according to Analysys.