Overview of cross-border B2C e-commerce and its impact

Cross-border B2C e-commerce refers to the process in which businesses and consumers in different countries or regions realize commodity transactions through Internet technology. This model mainly serves foreign individual consumers. Therefore, the single transaction amount is low and the quantity is small, but the transaction frequency is high.

Market Growth

According to a report from Ali Research Institute and Accenture, the global B2C e-commerce market has grown rapidly in recent years and is expected to develop at an average annual growth rate of close to 14% in the next few years. By 2020, the transaction scale will increase from 2014 to 2014. grew from US$1.6 trillion to US$3.4 trillion. It is particularly worth noting that the growth of cross-border B2C e-commerce is even stronger, with an average annual growth rate expected to reach 27%, and the market size will grow from US$230 billion in 2014 to nearly US$1 trillion.

The Asia-Pacific region has become the world’s most important regional market due to its market size and growth momentum. In 2020, the region’s market share is expected to rise to 48%. East Asia will become the core of the Asia-Pacific market due to its advanced infrastructure and high mobile Internet penetration rate. At the same time, Southeast Asia has also become a hot spot in the Asia-Pacific region due to the progress of regional economic integration.

As mature markets, Western Europe and North America are growing at a slower pace. However, due to their huge market base, the total transaction volume of these two markets still exceeds that of new markets by 30%. By 2020, they will be the second and third largest in the world respectively. Large cross-border B2C e-commerce market.

Impact on traditional trade

Before the emergence of cross-border B2C e-commerce, most cross-border trade was conducted in the B2B2C model. The disadvantage of this model is that the interaction between consumers and product providers is blocked, making it difficult for manufacturers to understand changes in consumer demand in a timely manner; in addition, the monopoly formed by service providers in each link puts buyers and sellers at a disadvantage.

Cross-border B2C e-commerce breaks this traditional model. Manufacturers can directly face end consumers. The intermediate links in the traditional model no longer exist as intermediaries, and their functions are completed by platform-based service providers. This change has had a profound impact on sellers, buyers and intermediary service providers.

Seller

For sellers, cross-border collaboration based on digital platforms allows companies to directly connect with global consumers to sense market demand, innovate products, and find sales opportunities. In addition, the digital transaction model of cross-border B2C e-commerce platforms reduces transaction costs and promotes a more equal and inclusive globalization.

Buyer

For buyers, cross-border B2C e-commerce brings richer overseas products and services, more supplier choices, greater space for product and service personalization, lower prices and shorter delivery times. delivery time.

Intermediary service provider

The role of intermediary service providers has changed, and they need to be repositioned in the new ecosystem. Although they have lost their monopoly position under the original model, they have created opportunities for value returns in the broader online space.

Platform logistics solution

Take Alibaba AliExpress as an example. The platform provides a variety of cross-border e-commerce logistics solutions. Sellers can choose the appropriate logistics solution by visiting the seller’s backend.

Principles for product selection on mainstream e-commerce platforms

When selecting products, you need to consider the product’s popularity, quality assurance, visual effects of pictures and reasonable price. These principles apply not only to mainstream e-commerce platforms, but also to some niche e-commerce platforms.

Export to mainstream markets

North America and Europe are still strong markets. Southeast Asia, Eastern Europe, and the Middle East are developing rapidly. Brazil and Russia are hot spots for sellers. Africa and India are worth looking forward to.

Platform fees

Although most cross-border e-commerce platforms are free, sellers still need to pay certain platform fees. Taking Amazon as an example, sellers need to pay monthly service fees and commission fees.

To sum up, cross-border B2C e-commerce is experiencing rapid development and has a significant impact on traditional trade models. For merchants who want to enter this field, it is crucial to understand market trends, platform rules and product selection principles.