Transaction volume in China's consumer e-commerce market is expected to climb more than 1.5 trillion yuan (US$220 billion) by 2014, according to a latest industry report.

The country's business-to-consumer and consumer-to-consumer sectors will grow an average 42 percent annually to 1.52 trillion yuan in the next five years, accounting for 7.2 percent of overall domestic retail sales by 2014, Deutsche Bank said in the report.

"China's e-commerce market is still at a nascent stage but will boom significantly as the Internet population grows," Alan Hellawell, head of Asian Telecommunications, Media and Technology Research at the bank, said in the report.

Logistics and other value-added services related to e-commerce will also become more important as B2C providers expand their product categories.

Amazon.cn and Dangdang.com, which previously focused on online book selling, have already begun to sell consumer electronics and home appliances to seek a bigger profit margin.

"Successful marketing, inventory management and delivering goods efficiently and cheaply will be the key factors for successful e-commerce," Hellawell wrote.

The report noted that Alibaba "has the greatest relative potential" in the industry because it is seen to gain from the huge transaction volume at Taobao.com and the links between Taobao sellers and Alibaba members.