Challenges and solutions for traditional foreign trade companies’ transformation into cross-border e-commerce
Under the current favorable market environment and national policy support, many foreign trade companies still face survival difficulties. The main reason for this phenomenon is that the business models of most traditional foreign trade companies are relatively lagging behind and cannot adapt to market changes and changes in customer needs.
Limitations of traditional customer development methods
Many foreign trade companies still rely on peer introductions, door-to-door visits and participation in exhibitions to develop customers. These methods are inefficient and have unstable customer sources, which ultimately hinders the development of the company. In addition, traditional enterprises also lag behind in obtaining international market information. The division of responsibilities within the team is blurred, resulting in inefficient business processes, long delivery times, slow payment and other common problems. This situation makes companies particularly vulnerable when facing market changes.
Needs for transformation of business model
Faced with the rise of the Internet and cross-border e-commerce, traditional foreign trade companies urgently need to transform and change their previous business models. The popularity of cross-border e-commerce has caused significant changes in the needs of buyers, who are more inclined to conduct multiple, small-volume transactions. Therefore, traditional foreign trade companies need to use big data and Internet technology to promptly adjust their customer development methods to adapt to the new environment. Using a comprehensive buyer data query system, global buyer resources can be effectively obtained and the success rate of customer development can be improved.
Platform selection for cross-border e-commerce transformation
In the process of transformation, traditional foreign trade companies mainly have two paths to choose from: using third-party cross-border e-commerce platforms or building their own online malls.
1. Use third-party platforms
Through mature third-party platforms, companies can publish product information in a broad sales network, and use the platform’s traffic and popularity to increase the exposure of their products. This not only helps to quickly expand overseas markets, but also improves the quality of logistics services through the platform’s warehousing system. However, relying on third-party platforms also means that companies face certain limitations in brand building and marketing promotion.
2. Build your own online mall
Self-built online malls integrate resources and independently sell products. This method helps companies better shape their brand image and obtain market information. However, building an independent e-commerce platform requires investing a lot of manpower, material resources and funds, which is undoubtedly a huge challenge for most small and medium-sized foreign trade companies. In comparison, entering the market through third-party platforms poses relatively less risk to enterprises and is suitable for rapid transformation needs.
Summary
As cross-border e-commerce becomes increasingly popular today, traditional foreign trade companies need to actively take measures to respond to market changes and challenges. Whether you use a third-party platform or build your own online mall, the key lies in how to improve operating efficiency and customer development capabilities in order to remain invincible in the fierce market competition.