Misconception 1: All categories are suitable for cross-border e-commerce
Considering the advantage of my country’s large labor force, products suitable for cross-border e-commerce must reflect the characteristics of “Made in China”. For example, mass-produced electronic products and related accessories, or low-priced clothing accessories. These products can reflect unique advantages and have the characteristics of low cost and high profit.
In addition, products that are not easy to clear customs and are not suitable for logistics distribution, such as large size, overweight, and fragile, are not suitable for cross-border e-commerce.
Misconception 2: The trade model of cross-border e-commerce can be chosen at will
At present, the trade models of cross-border e-commerce in my country mainly include B2B model and B2C model. In a sense, the B2B model is still a traditional trade. Although it uses the Internet platform to publish information and advertisements, the customs clearance and transactions of its products are completed offline. Customs has included it in general trade statistics. Compared with the B2B model, the B2C model is a new retail model that breaks the intermediary and shortens the distance between merchants and consumers. Merchants can send goods directly to consumers without customs registration.
The B2B model and the B2C model each have their own advantages and disadvantages. As a cross-border e-commerce company, you should choose which trade model to choose based on your actual situation. Generally speaking, the B2B model is more suitable for cross-border e-commerce companies in their early stages. When the company develops to a certain scale and has a strong financial and resource base, the B2C model can be adopted.
Misunderstanding 3: Online promotion is the only channel for product marketing
Alibaba International Station, Dunhuang.com, etc. are service platforms for cross-border e-commerce, providing services to global buyers and suppliers. For example, companies can publish product information on these platforms to attract consumers to buy, but they must not regard them as the only product marketing platform.
For overseas consumers or partners, all products are the same in their eyes before they see the real product. Therefore, for merchants, in addition to promoting products on the Internet and e-commerce platforms, they should also focus on offline product promotion, provide consumers with high-quality services, integrate the online and offline battlefields, and jointly promote the development of enterprises.
Misconception 4: Cross-border logistics is a simple link
Operating cross-border e-commerce is not a simple matter. In addition to the above three misunderstandings, cross-border e-commerce also needs to solve the following problems: long delivery time, inability to track in real time, customs clearance obstacles, etc. For this reason, many merchants have begun to establish logistics centers overseas to store goods, but generally speaking, only goods that are expensive, large, fragile, and cannot be transported by traditional logistics channels can be stored overseas.
In addition, the high cost of overseas warehousing will expose companies to greater risks; moreover, goods stored overseas cannot be returned or exchanged. Because returning or exchanging goods requires the product to return to the storage base, it means that the exported products become imported, and the imported products need to pay customs duties and freight, and the total price has long exceeded the value of the product. Therefore, if an enterprise wants to establish an overseas storage base, the company needs to develop to a certain scale and be able to bear the losses caused by returns or product backlogs.
Traditional foreign trade enterprises need to understand when operating cross-border e-commerce that theoretical experience cannot solve all practical problems, and enterprises need to constantly summarize and explore in the process of operation, but one thing that remains unchanged is: users are supreme, and consumers’ needs are given priority. At the same time, they should correctly view various cross-border e-commerce platforms, seek benefits and avoid harm, so as to promote the development of enterprises.