In-depth analysis of the market structure of cross-border e-commerce and third-party electronic payment

The rapid development of cross-border e-commerce and third-party electronic payment in recent years has formed a complex market structure. According to different policy adjustments and industry needs, both fields are facing the challenge of reshuffling and restructuring.

Current status and changes of cross-border e-commerce platforms

In 2016-2017, China’s cross-border import e-commerce market was relatively active. The market shares of the major platforms are as follows: NetEase Kaola overseas shopping ranked first with a share of 21.4%, Tmall International and Vipshop International ranked first with a share of 21.4%. 17.7% and 16.1% ranked second and third, followed by JD Global Shopping and Jumei Express Duty Free Store, accounting for 15.2% and 13.6% respectively.

Industry stratification and competition

Cross-border e-commerce platforms can be divided into three echelons: the first echelon includes NetEase Kaola, Tmall International, Vipshop International and JD Global, which together account for 70.4% of the market; the second echelon includes Ju Magisu Duty Free Shop, Xiaohongshu and Yangquan; while the third echelon is a platform focusing on maternal and infant products, such as Baby Grid, Miya, etc. The competition for survival among these platforms has intensified, and they are also promoting the improvement of quality and service standards in the industry.

The impact of tax reform policies

With the implementation of the new cross-border e-commerce tax reform policy, the entire industry is about to undergo a new round of reshuffle. The improvement of policies has further raised the industry threshold, and many cross-border e-commerce platforms that rely on low-price competition may face a crisis of survival. In particular, requiring merchants to provide product invoices and certificates of origin will directly affect consumer trust.

Diversification of business models

The business models of major cross-border e-commerce platforms are gradually diversifying. For example, Tmall International adopts the M2C (manufacturer to consumer) model, while NetEase Kaola Overseas Shopping focuses on self-operation in bonded areas and direct mail procurement, which gives them certain advantages in logistics and supply chain management. . In addition, Yangquan adopts a C2C (consumer to consumer) model to meet the needs of different consumers.

The evolution of the third-party electronic payment market

In order to regulate the payment business of non-financial institutions, the People’s Bank of China issued the “Measures for the Administration of Payment Services of Non-Financial Institutions”, which requires third-party electronic payment companies to hold certificates. This policy puts half of the companies in the market in a life-or-death situation. edge. Through technological innovation and deep cultivation of industry resources, third-party payment companies can survive and continue to expand their markets.

Integration of industry resources

With the development of electronic payment technology, many industries are accelerating the electronic process, causing the application scenarios of electronic payment to continue to expand. Taking the aviation industry as an example, Yipay has launched a variety of electronic payment solutions for air passengers to help airlines better adapt to the needs of digital transformation. In addition, the fund industry is gradually introducing third-party electronic payments to help its sales channels become online.

Market prospects

As the industry continues to become e-commerce, more industries will continue to pour into the electronic payment market. According to current trends, the future market structure of third-party electronic payments will depend on the degree of electronicization of various industries and the demand for electronic payments. By integrating resources and providing diversified payment solutions, electronic payment companies are expected to achieve sustainable development in the new market environment.

Conclusion

Whether it is cross-border e-commerce or third-party electronic payment, they all face complex market environments and policy changes. Under strong competition and policy regulation, only those platforms that can quickly adapt to market changes and improve service quality can remain invincible in future competition. At the same time, as consumer demands diversify, relevant companies need to continuously innovate and optimize their business models to cope with the upcoming industry restructuring and challenges.