For ecommerce companies which received mint of money from VCs, the last thing they want to see will be skyrocketing marketing expenses and ever-rising SEM costs. While capital scrambles to invest in Chinese B2C sites, few of which will go public and most of them will end up shutting down, and the navigations sites(hao123, 265), portals(sina, sohu) and search engines(Baidu, Google China, Sogou) who serve ads for B2C sites are actually the real beneficiaries.

Many B2C players came to realized this, starting to reduce or even totally cut SEM expenses and build up their own affiliate program. Chinese giant B2C site Dangdang have stopped Baidu SEM initiative as of this April, prior to 360buy founder Liu Qiangdong announcing the same attempt for 360buy. B2B site DHGate is also reducing such costs.

On top of that, some B2C sites are starting their own affiliate networks. Including Joyo Associate, Dangdang Union, 360buy Union, VANCL Union and Letao Union.

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Ben Jiang

Listener of startups, writer on tech. Maker of things, dreamer by choice.