Cross-border e-commerce: new engine and development trend of global trade
Cross-border e-commerce refers to a type of transaction entities belonging to different customs borders that complete transactions through e-commerce platforms, conduct electronic payment settlements, and deliver goods through cross-border e-commerce logistics and off-site warehousing. international business activities. With the formation of the global economic integration pattern and the proposal of China’s “One Belt, One Road” initiative, China’s foreign international trade has developed rapidly. As a branch of e-commerce, cross-border e-commerce has both the general characteristics of e-commerce and its own special rules.
The current situation and characteristics of cross-border e-commerce
In 2022, my country’s cross-border e-commerce import and export scale will be 2.1 trillion yuan, an increase of 7.1% over 2021, accounting for 4.9% of my country’s total import and export value of goods trade. It mainly presents four major characteristics: the scale of import and export has reached a new high, trading partners have become more diversified, the proportion of consumer goods has further increased, and the head effect of business development has been obvious. The emergence of cross-border e-commerce has provided rare opportunities for many Chinese companies, and a number of companies have also seized the favorable conditions and grown rapidly.
Feature summary
Cross-border e-commerce has various characteristics that are different from traditional trade:
- Multilateralization: Cross-border e-commerce can use the trading platform of country A (region), the payment and settlement platform of country B (region), and the logistics platform of country C (region). Direct trade between other countries (regions).
- Directization: Cross-border e-commerce can realize direct transactions between enterprises in multiple countries (regions) and between enterprises and final consumers through cross-border transactions and service platforms.
- Small batch: Cross-border e-commerce realizes transactions between enterprises or between a single enterprise and a single consumer, usually in small batches or even a single product.
- High frequency: Cross-border e-commerce realizes transactions between enterprises or between a single enterprise and a single consumer, and it is an instant on-demand purchase, sale or consumption.
- Digitalization: Cross-border e-commerce mainly deals in digital products (software, movies, games, etc.), which are sold or consumed through cross-border e-commerce.
- Traceable: The entire transaction process of cross-border e-commerce includes data records on price negotiation, order placement, logistics, payment and other information.
- Intangibility: Cross-border e-commerce is an intangible product and service.
- Immediateness: There is no time difference in the data transmission of cross-border e-commerce.
Advantages of cross-border e-commerce
Cross-border e-commerce has the following advantages:
- Expand market space: Cross-border e-commerce breaks the geographical restrictions of traditional trade, allowing companies to directly face the global market.
- Increased product selection: The cross-border e-commerce platform brings together products from all over the world, providing sellers with a richer and more diverse selection.
- Reduce costs and increase profits: Cross-border e-commerce has lower entry barriers and costs. Companies can directly cooperate with overseas suppliers, saving intermediate links and procurement costs.
- The driving force of innovative technology: Cross-border e-commerce platforms use the Internet, big data, artificial intelligence and other technologies to provide precise marketing promotion, personalized user experience and efficient logistics and distribution.
- Promote cultural exchanges and cooperation: Cross-border e-commerce not only promotes the circulation of goods, but also provides a platform for cultural exchanges between different countries and regions.
What should you pay attention to when doing cross-border e-commerce?
To become a cross-border e-commerce business, you must devote yourself physically and mentally and cannot work part-time, because people do not know their direction and will not fully concentrate. Secondly, when doing cross-border e-commerce, you should participate in more training. Training is an important way to find the right direction. Furthermore, to do cross-border e-commerce, you must first learn how to describe products and set prices.
Conclusion
As a new business model, cross-border e-commerce is gradually changing the pattern of global trade. Its rapid development not only brings more opportunities to enterprises, but also brings richer choices to consumers. However, the development of cross-border e-commerce also faces some challenges, such as severe customs clearance issues, imperfect cross-border logistics systems, and imperfect transaction credit mechanisms. Therefore, enterprises need to continuously learn and explore in order to remain invincible in the wave of cross-border e-commerce.