Abstract
Price wars are a major form of competition for Chinese online retailers. Based on empirical data from online retailers, JD Mall, Amazon(Z.cn) and Dangdang, this study explored the price competition in China's B2C e-commerce market. The average price level, the minimum price level, the price differential level and price variation were considered. The results showed that the average price levels between the three ecommerce websites had statistically significant differences. However, the minimum price level and the price differential level were similar. In terms of the price variation, the three websites adopted different price adjustments and did their best to avoid a direct price war. This suggests that the e-commerce market competition in China is becoming rational.
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