Detailed explanation of cross-border e-commerce business types and market strategies

As an emerging business model, cross-border e-commerce is changing the global trade pattern. Cross-border e-commerce is divided into different types based on transaction entities, transaction items and project liquidity. This article aims to explore the main business types of cross-border e-commerce and analyze the business strategies of cross-border e-commerce based on specific markets (such as Japan and Vietnam).

Cross-border e-commerce business types

Classification by transaction entity

Cross-border e-commerce transaction entities can be divided into three categories: individuals, enterprises and governments. Individual consumers purchase goods on cross-border e-commerce platforms, and companies purchase in groups. However, the government has not yet widely participated in cross-border e-commerce activities. According to the differences between buyers and sellers, cross-border e-commerce can be further subdivided into B2C, B2B, C2C and other models.

Classified by transaction items

Cross-border e-commerce is divided into vertical and comprehensive types based on transaction items. Vertical cross-border e-commerce focuses on a specific field or demand and provides comprehensive information and services; while comprehensive cross-border e-commerce covers a variety of commodity categories and is not limited to a specific field.

Classification by project liquidity

Cross-border e-commerce can also be divided into cross-border import e-commerce and cross-border export e-commerce based on the direction of commodity flow. The former introduces foreign goods into the domestic market, while the latter sells domestic goods to the international market.

Specific commodity business case: imported drugs

Take imported drugs as an example. Cross-border e-commerce platforms need to pay attention to the following points when operating such products:

• Personalized recommendations: Provide personalized recommendations based on user browsing history to attract consumers’ attention.
• Promotional activities: Regularly hold promotional activities, publish drug price and quality reports, and increase sales.
• Drug Promotion: Use self-media platforms to promote and increase the visibility of imported drugs.
• Customer rights protection: Provide detailed drug information, set up a feedback mechanism, and regularly invite professionals to explain medication knowledge to enhance customer confidence.

In addition, legal operation is also key. It is necessary to obtain a drug sales license and establish a good relationship with drug operating companies to ensure the provision of legal drug services.

Individual cross-border e-commerce export tax compliance management

For individual cross-border e-commerce sellers, it is important to understand and comply with export tax regulations:

• Tax registration: Carry out tax registration according to regulations.
• Tax Calculation: Calculate the tax payable based on sales volume, product category and tax rate.
• Tax filing: File your return on time and pay your taxes.
• Customs declaration procedures: Go through export customs declaration procedures, including filling in declaration forms, providing relevant documents, etc.

In order to reduce tax burden, sellers can adopt strategies such as reasonable pricing, optimizing operating models, taking advantage of tax exemption policies, and seek professional tax consultation.

Japanese overseas warehouse management

Japanese overseas warehouses provide efficient logistics solutions for cross-border e-commerce sellers:

• Advantages: Optimize logistics links, expand market share, save time and energy.
• Process: Register an overseas warehouse service provider account, upload product information, and have the service provider complete the subsequent logistics process.
• Notes: Choose regular service providers, ensure product quality, learn more about logistics costs, and comply with laws and regulations.

Vietnam cross-border e-commerce market business strategy

As a fast-growing cross-border e-commerce market, Vietnam has huge potential:

• Choose the right platform: Such as Lazada, Shopee, etc., choose to settle according to the characteristics of different platforms.
• Localization first: Open local stores to improve logistics and delivery speed.
• Both mobile and PC terminals: Adapt to consumer shopping habits.
• Choose logistics service providers carefully: Avoid losing customers due to logistics problems.

To sum up, cross-border e-commerce companies should adopt flexible and diverse business strategies in different market environments to ensure compliance with operations while seizing market opportunities and achieving sustainable development.