US rides China's e-commerce wave

American small and medium-sized businesses such as retailers of cosmetics, apparel, maternal and baby products, and health supplements and even farmers are cashing in on the huge purchasing power of China's vast and fast-growing middle class through e-commerce while creating jobs for the Americans.

A prime example is 100% Pure, a San Jose, California-based company with a 15,000-square-foot complex from which Chinese consumers can buy organic cosmetics and other beauty products directly through Tmall.com, e-commerce giant Alibaba's business-to-consumer or B2C platform.

Ric Kostick, founder and CEO of 100% Pure, said that when he and his two business partners started their business, they were concerned that the hefty service fee they had to pay to brokers and middlemen for packaging and ingredients would impede their company's growth.