1. Differences in business links
Domestic e-commerce is domestic trade, while cross-border e-commerce is actually international trade. It is different from general e-commerce because of its international elements.
Compared with domestic e-commerce, cross-border e-commerce business links are more complicated and need to go through customs clearance, inspection and quarantine, foreign exchange settlement, export tax rebate, import taxation and other links. In terms of cargo transportation, cross-border e-commerce is exported through postal parcels and express delivery. The time from the sale to the hands of foreign consumers is longer. Due to the long distance, the goods are easily damaged, and the postal delivery capacity of various countries is relatively limited. The concentrated growth of parcels is also easy to cause trade friction. Domestic e-commerce occurs in the country where goods are delivered directly to consumers by express delivery. The distance is short, the arrival speed is fast, and the probability of damage to goods is low.
2 Differences in transaction subjects
The transaction subjects of domestic e-commerce are generally domestic, domestic enterprises to enterprises, domestic enterprises to individuals, or domestic individuals to individuals. The subject of cross-border e-commerce transactions is definitely between cross-border. It may be domestic enterprises to foreign enterprises, domestic enterprises to foreign individuals, or domestic individuals to foreign individuals. The trading entities are all over the world, with different consumption habits, cultural psychology, and living customs. This requires cross-border e-commerce to have a deeper understanding of international traffic introduction, advertising promotion and marketing, and foreign local brand recognition. It is necessary to have a deep understanding of foreign trade, the Internet, distribution systems, and consumer behavior, and to have a “localization/localization” thinking, which is far beyond the daily domestic e-commerce thinking.
3. Differences in transaction risks
Domestic manufacturers have a relatively weak awareness of intellectual property rights. In addition, most of the products on the B2C e-commerce market are daily consumer goods that do not require high technology and large-scale production. Many companies lack product positioning and sell whatever is hot. A large number of low-value-added, unbranded, low-quality products and counterfeit imitations flood the cross-border e-commerce market, causing infringements of intellectual property rights. In countries with a relatively complete business environment and legal system, it is easy to cause intellectual property disputes, and subsequent judicial proceedings and compensation are very troublesome. However, domestic e-commerce activities take place in the same country, and the transaction parties have a relatively consistent understanding of intellectual property rights such as trademarks and brands. There are fewer disputes caused by infringement. Even if disputes arise, the processing time is short and the processing method is relatively simple.
4. Differences in applicable rules
Cross-border e-commerce needs to adapt to more, more detailed and more complex rules than general domestic e-commerce. The first is the platform rules. In addition to domestic platforms, cross-border e-commerce operations may also conduct transactions on foreign platforms. There are already many domestic B2B and B2C platforms, each with different operating rules. The platforms and rules of various overseas countries are even more dazzling. Cross-border e-commerce needs to be familiar with the operating rules of different domestic and foreign platforms, and have the skills to operate multiple platforms for different needs and business models.
Domestic e-commerce only needs to follow general e-commerce rules, but cross-border e-commerce must be based on a series of internationally accepted trade agreements, or bilateral trade agreements. Cross-border e-commerce needs to have a strong sensitivity to policies and rules. It is necessary to keep abreast of changes in the international trade system, rules, import and export controls, tariff details, and policies, and have a deeper understanding and analysis of the import and export situation.