Online sales in China in 2011 grew 66 percent from the previous year, with turnover totalling 780 billion yuan ($125 billion), according to a report cited by state news agency Xinhua Thursday.
Online sales now account for three percent of total retail sales in China, with the proportion expected to rise to seven percent in 2015, according to the report published jointly by the International Data Corporation (IDC) and Chinese e-commerce giant Alibaba Group.
E-commerce in China has reduced production costs and increased employment with Taobao, China's largest online trade platform, creating more than 2.7 million jobs in 2011, the report said.
China has more than 500 million Internet users. Many sites offer cheap delivery and users can pay in cash on receipt of their goods.
Explore further: Flipkart, India's reply to Amazon, sees $1 bln sales